May. 11 at 10:04 PM
Home improvement stocks like Home Depot and Lowe’s have struggled this year, but UBS analysts see a potential turnaround driven by structural demand in housing maintenance. Many homes built during the mid-2000s housing boom are now around 20 years old, a stage where major repairs and replacements typically become unavoidable.
On top of that, pandemic-era purchases of appliances, tools, and outdoor equipment are also aging, creating additional replacement demand. UBS estimates this could translate into an extra
$1B–
$2B in annual spending, which may support growth for the sector even in a relatively weak housing market.
The idea is that homeowners, especially those facing financial constraints, may no longer be able to delay essential repairs, potentially benefiting retailers like Home Depot and Lowe’s as deferred maintenance spending returns.
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