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Retailers Lowe's (LOW) and Home Depot (HD) acknowledged challenges in the home renovation market while reporting earnings. National Kitchen & Bath Association (NKBA) CEO Bill Darcy joins Wealth with Brad Smith to take a closer look at the renovation market.
"I think what you're hearing from the big box retailers is the macroeconomics," Darcy says, explaining, "What we're expecting this year is about 0.8% growth [and] that's really because DIY [do it yourself] and multifamily DIY mostly is bringing the market down a little bit."
The CEO notes that with ongoing affordability challenges for homebuyers and expectations of a more hawkish Federal Reserve, "consumers feel more and more comfortable with 5% [mortgage rates] and really their desire to really stay in their homes, this really does drive remodeling."
"We feel for the construction side [and the] new home side, but we really feel that even higher interest rates sometimes is the driver for further remodeling," Darcy adds.
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This post was written by Naomi Buchanan.