The Return Of Remodeling - Nesting Trend Means More Business for Home Improvement Companies

Home Improvement professionals were among the hardest hit people in this recession, but a new trend is starting to mean more business for this very group. That trend is called "Nesting" and its the opposite of the old Flipping trend.

From CNNMoney:

If flippers were the poster children of the real estate boom, then nesters are becoming the icons of the new housing market.

"We saw a nesting reaction after 9/11, but we're seeing a stronger nesting reaction now," said Bob Peterson, president of ABD Design/Build in Ft. Collins Colo. People who have the money are fixing up what they have."

A proportionally bigger share of the home construction dollar -- 20% more during the first three quarters of 2009 compared with the same period last year -- now goes to home improvements, according to the U.S. Census Bureau. In October, remodeling spending increased 8.7% compared with September to an annualized rate of $114 billion.

For New York General Contractors and Interior Designers, this is a very good sign indeed.

Sources:

Remodeling Activity on the Rise (CNNMoney)

As Credit Dries Up, Homeowners Tackle Smaller Home Improvement Projects

Home Depot in Brooklyn (image by Jim in Times Square)

The New York Times wrote a piece this week about how homeowners, unable to run up credit or uncomfortable with beginning large scale renovations, are instead tackling the smaller projects that help them maintain their homes.

Here at cityhammer, we've heard just about the same type of story anecdotally, from both users of the site and from remodeling companies in the New York area.

From the New York Times:

In prerecession days, home improvement projects were usually grand, expensive overhauls of kitchens and bathrooms.

In this economy, home improvement projects consist of painting the walls and replacing the jiggly toilet handle.

It's nice that Wall Street seems to be turning around, but Main Street is still very much concerned about when the jobs may come back and this caution is manifesting itself in the types of home improvement projects that homeowners are choosing to initiate.

Another facet of this trend is the urge to do-it-yourself, as Home Depot and Lowes stock up their hardware and paint departments for those who want to save money by handling handyman tasks and painting projects on their own.

Lowe’s has added more staff to popular do-it-yourself departments, like paint and hardware. Home Depot also beefed up its paint department, adding new products like an all-in-one paint and primer, and a Rust-Oleum paint variety that promises to cover more surface area for the money.

Home improvement companies, however, are also offering specials, so before you bite off a project that may be more than you chew, be sure to visit cityhammer.com and consult a few of New York's top remodeling pro's.

Sources:

Home Improvement Chains Adjust (NYT)