Americans are pouring record amounts of money into home improvements this year as a shortage of new single-family homes across the U.S. pushes up prices and keeps many buyers out of the market.
Spending on renovations is forecast to grow 6.8 percent from a year earlier to $316 billion in 2017, according to The Wall Street Journal, citing a study from Harvard University’s Joint Center for Housing Studies.
“The burst of renovations has been a boon for contractors as well as big home-improvement companies, which have enjoyed strong revenue growth even as most other retailers are struggling,” the newspaper reported. “It also reflects rising home prices and growing consumer confidence, as people are once again willing to invest in their homes, either through savings or by tapping home equity.”
Analysts polled by FactSet forecast that home improvement chain Lowe’s Cos. will post adjusted earnings on a per-share basis of $4.62