March 5, 2015
HIRI/IHS Global Insight up 4.0% in 2014, Expecting 5.7% sales growth in 2015
Total home improvement products sales increased 4.0% in 2014 to $303 billion. The Professional Market increased 3.4% in 2014 over 2013 and the Consumer Market will see a sales increase of 4.3%.
The National Economic Outlook
Outlook for the Home Improvement Products Market
Growth rates of market size by segment for the current year and 5-year historical and forecast periods are as follows:
September 15, 2014
Total home improvement products sales are expected to increase 4.9% in 2014 to $303 billion. The Professional Market is expected to increase 5.0% in 2014 over 2013 and the Consumer Market will see a sales increase of 4.9%.
We continue to expect home improvement product sales growth to accelerate over the next two years with 2015 forecasted to increase 5.8% over 2014.
July 23, 2014
Homeowner Purchases of Lawn & Garden, Electrical & Lighting Products Lead Growth in Home Improvement Industry
July 23, 2014 – NEW YORK – The Lawn & Garden and Electrical & Lighting categories led homeowner purchases in the home improvement products market last year, according to a new report by the Home Improvement Research Institute (HIRI, http://www.hiri.org), the primary authority for information on home improvement products and services in North America.
HIRI’s 2014 Product Purchase & Project Activity Tracking Study is the industry’s most comprehensive overview of how homeowners improve, repair and maintain their homes. The biennial benchmarking study provides detailed data on home improvement projects completed, and products/services purchased, in 2013 as compared to prior years.
“The home improvement market is on the rise. Our Home Improvement Products Market Forecast Update, released in March 2014, values the 2013 market at $289.8 billion, up 4.2% over 2012, and we are projecting 6.5% growth for 2014 to $308.6 billion,” said HIRI managing director Frederick Miller. “As the market shows continued growth, our new Product Purchase Tracking study reveals its most active categories, key demographic groups buying, and where consumers make their purchases. This is a major aid to building marketing strategies and identifying market opportunities. ”
Among the study’s findings:
• Homeowners continue to purchase more Lawn & Garden and Electrical & Lighting products than other product categories; 50% or more of homeowners have purchased each in 2013.
• The top home improvement projects completed by homeowners in 2013 were planting a garden, shampooing carpeting, and painting a room.
• The most frequently purchased home improvement services are lawn mowing, heating or air conditioner maintenance, and pest control.
• Over one-third of homeowners purchase the majority of products at one walk-in store, but a quarter shop around to find the best price.
• Home improvement TV/cable programs, led by HGTV’s House Hunters, Love it or List it, and Property Brothers, are the third most common source of product and project information for homeowners, after online/Internet and friends/relatives.
Included with the study is a comprehensive segmentation analysis. “By combining an examination of consumer passion for home improvement with their spending behavior, we get unique insights into market opportunities,” said Miller.
The 2014 Product Purchase & Project Activity Tracking Study as well as updated industry forecasts will be presented at HIRI’s Fall Conference, to be held October 16, 2014 in Chicago. For more information and additional independent research on the home improvement industry, visit https://www.hiri.org/.
March 15, 2014
March HIRI/IHS Global Insight forecast grew 4.2% in 2013, Expecting 6.5% sales growth in 2014
We estimate that in 2013 the Professional Market sales increased 3.4% last year; Consumer Market sales were up 4.5%; and total home improvement product sales rose 4.2% to $290 billion.
We continue to expect home improvement product sales growth to accelerate over the next two years. We expect total home improvement product sales to increase by 6.5% in 2014 to $309 billion.
· The acceleration in GDP growth that began in the third quarter of 2013 continued in earnest during the fourth quarter despite a large shutdown/sequester drag from the federal government. Strong exports and consumer spending on services more than offset this drag, boosting full-year GDP growth to 1.9%.
· Despite mixed economic data on jobs, housing, and manufacturing recently, we continue to expect the pace of GDP growth to pick up over the next two years, to 2.7% in 2014 and 3.3% in 2015.
· The pace of existing home sales slowed in the fall, following the run-up in mortgage rates, but sales were still up 8.9% for the year. We expect continued growth in existing home sales in 2014, but we have revised our forecast down to show a 4.4% gain. Housing starts are expected to increase 22% in 2014. The growth of both of these housing market indicators will accelerate in 2015.
· Consumer spending will return to a trend growth rate of about 3% over the next two years based on good, but not great, employment growth, rising confidence, and improved household balance sheets.
· The outlook for consumer price inflation remains benign. After increasing by 1.5% in 2013, we expect the CPI to rise by only 1.3% in 2014 and 1.7% in 2015.
Outlook for the Home Improvement Products Market
· The latest Census Bureau data on spending on residential improvements suggest that Professional Market sales of home improvement products did not match the mid-year spurt in retail Building Material Dealers’ sales in 2013. We estimate that Professional Market sales increased 3.4% last year; Consumer Market sales were up 4.5%; and total home improvement product sales rose 4.2% to $290 billion.
· We continue to expect home improvement product sales growth to accelerate over the next two years. Although existing home sales will grow more slowly in 2014, the pace of housing starts will improve and real income growth will be much stronger. We expect total home improvement product sales to increase by 6.5% in 2014 to $309 billion.
· Housing starts, existing home sales, and real income growth will all show further improvement in 2015, and we expect total home improvement product sales to increase 7.0% in 2015.
· Home improvement product sales growth will then slow over the following three years as the housing market cycle runs its course. Sales growth will average 4.6% annually over the period 2016-2018.
Growth rates of market size by segment for 5-year historical and forecast periods are as follows: