The original post-war suburban communities are now at least 50 years old. As younger families move into these homes, they will want to make various improvements and enhancements. In addition, Americans are demanding larger homes than even before, in terms of square footage. Many are adding bedrooms, bathrooms, and renovating kitchens to properties of all ages. And others want to enhance the energy efficiency of their homes.
Demographics also come into play.
By 2020, approximately 25 percent of the U.S. population will be over 55 years old. These older American are more likely to own homes and stay in them longer. An increasing percentage of borrowers are among this group - consumers opting to improve an existing home rather than buy a new one.