The Do It Yourself (DIY) and home improvement industries are expected to flourish over the next 12 months, with other industries more likely to feel the crunch of limited consumer spending, according to new research by IBISWorld.
The average Australian homeowner is expected to spend $2,554 on (DIY) home renovations and improvements in the next year, while cutting back on other spending.
IBISWorld General Manger Karen Dobie expects this figure will continue to rise given the current property market.
“In the last five years, changes in the property market have influenced consumers’ decisions between renovating and moving.”
“Many homeowners have been dissuaded from entering the property market due to the increasing cost of buying a home and the associated costs of moving.”
IBISWorld predicts the renovation sector will grow by 15 percent over the next five years, reaching $25.5 billion by 2016-2017.
This new trend towards DIY will cause the home improvement industries to see increased profits, with a number of particular retailers to be heavily influenced.
Hardware retailers are expected to benefit the most, enjoying 52 percent of all DIY related spending. Flooring retailers and tradespeople, who will experience rising demand for tasks that legally require them, will also benefit.
Demand for trades such as painting, landscaping, tiling, redecorating, and smaller carpentry jobs will decline, Dobie said.
“These consumers have turned to DIY and renovating to add value to their homes, save and squeeze their budgets further.”
Dobie suggests the new trend of home improvement is largely thanks to the popularity of renovation shows, which demonstrate that the latest décor and design trends that can be completed by amateurs.
