Understanding Generational Differences in Home Remodeling Behavior

Amal Bendimerad

W05-10: Over the last decade, the home remodeling market in the United States has enjoyed solid growth. Spending on residential improvements and repairs has climbed steadily, setting a new record of $233 billion in expenditures as of 20031. The continued strength of the market is due partly to several factors including a strong housing market, historically low interest rates, rapid home price appreciation and the resulting surge in home equity. The remodeling market also owes much of its success to the demographic composition of the population. Age patterns have enhanced and sustained this market, as considerable numbers of baby boomers in their peak remodeling years have generated strong spending levels…