The age of housing in the United States is starting to pay off for Home Depot Inc., Richard McPhail, senior vice president of finance, said during a presentation to analysts at the Raymond James conference on March 6.
"It's one of those glacial trends that, over a long period of time, adds up," he said. "We think that this is beginning to have more of an impact on demand for home improvement."
McPhail said the United States housing stock is getting older, a trend that helps Home Depot as consumers need to spend more money repairing them.
"As homes age, they require more and more repair, more maintenance and more remodeling, further supporting demand for home improvement products and services," he said.
In 1995, 17% of homes were less than 10 years old and 33% of homes were more than 40 years old. In 2016, only 8% homes were less than 10 years old and 51% of homes were more than 40 years old, he said.
By 2020, Home Depot expects that the number of homes more than 40 years old will increase to 54%, McPhail noted.