Home Equity & The Existing Residential Market – A $6 Trillion ImprovementAtul Gupta
Home equity in the U.S. has improved $6 trillion since the recession and 61 million people now have 25% or more in home equity. Compare that to where we were a few years ago and we have come light years!
Those are huge and impressive numbers but what does that mean to the landscaping industry? It means the existing residential market is healthy in numbers and dollars (I know I beat this to death last week but one more). Homeowner’s balance sheets have improved and their number 1 asset has rebounded. They are willing to make home improvement investments. Just look at Home Depot and Lowe’s recent numbers and listen to what they are saying.
Now is a good time to target existing homeowners and sell them on the virtues on landscape lighting, hardscapes, native and drought tolerant pallets, drip, micro and smart irrigation upgrades and whatever else is hot in your market.
For more on the significance of the home equity turn around, see Core Logic Chief Economist Frank Nothaft’s full 3 minute video.
If you missed last week’s existing residential opportunity overview, here it is again.