What Home Depot tells us about the nation’s housing boom

Home Depot has been an indicator of the red-hot housing market.

What’s going on: The company jumped on the heels of the construction boom because of the pandemic, giving us only a hint that it hasn’t slowed down.

A new data point lights up the boom: US home prices soared in December at the fastest pace in six years, the latest sign of strong demand.

Details: Home Depot said on Tuesday that vinyl flooring, appliances and trim drove sales late last year.

  • DIY project sales continued at a breakneck pace.
  • Purchases of housing supplies by professional builders increased the most since the pandemic began.

Get up to speed fast: Demand for homes has exploded, but supply is still tight, causing prices to skyrocket.

  • Builders are racing to keep up with the demand for new homes.
  • Borrowing rates plummeted when the pandemic hit, prompting locked-in residents to search for larger or different homes.

The other side: As people spent more time in their homes, they also put extra money in them, fueling a frenzy for home improvements.

What they are saying: “It took us 19 years … to get the first $ 20 billion in total sales,” but sales increased more than that in a single yearHome Depot CEO Craig Menear told analysts today.


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