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Home Improvement Industry Valuations Falling

The Home Improvement Retail Industry has traded at an average premium of 25% to the market in the last five years, but valuations have fallen in 2014 over fears of a slowdown in the housing market.

The US home improvement retail industry comprises retailers that sell appliances, kitchen fittings, lumber, building materials, plumbing, and other home improvement products. Demand for these products is highly correlated with demand for housing, therefore, any changes in sales of new and existing home significantly impacts the industry’s performance. Since 85% of all US homes were built before 1980, they need improvement at frequent intervals. This is a major growth driver for the industry.

About Amanda Bell

Amanda Bell was an assistant editor of Hardware Retailing and NRHA. Amanda regularly visited with home improvement retailers across the country and attended industry events and seminars. She earned a degree in magazine journalism from Ball State University and has received honors for her work for Hardware Retailing from the Association of Marketing and Communication Professionals.

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