3 Great Home Improvement Stocks for the Long-Term By StockNews

© Reuters. 3 Great Home Improvement Stocks for the Long-Term

Since the onset of the COVID-19 pandemic, home improvement spending has been growing. And the trend is unlikely to end anytime soon. Given this backdrop, we think it could be wise to add quality home improvement stocks Lowe’s Companies (LOW), Builders FirstSource (BLDR), and Mohawk Industries (NYSE:) to one’s portfolio now. Read on.The home improvement trend has skyrocketed since the onset of the COVID-19 pandemic in March 2020. Since people began spending more time indoors than outdoors with the pandemic, home improvement and maintenance expenditure has grown significantly. Many people are also ‘flush with cash’ due to federal spending, and they’ve not been shy to spend even though inflation has climbed to its highest level in 31 years. The low-interest rates are also fueling the demand for home improvement.

With the economy’s recovery, property prices have moved up to unprecedented levels, and many homebuyers have had to pay more than they anticipated to secure a home. The high home prices have also encouraged many potential home buyers to spend money on improving their existing homes rather than purchase an expensive new one. Because both new and old homeowners have opted for renovations, the home improvement industry has benefited. The managing director of the Joint Center for Housing Studies, Chris Herbert, said, “Home remodeling will likely grow at a faster pace given the ongoing strength of home sales, house price appreciation, and new residential construction activity.”

Investors’ interest in the home improvement industry is evident in the SPDR Homebuilders ETF’s (XHB) 46.9% returns over the past year. Given this backdrop, we think it could be wise to invest in quality home improvement stocks Lowe’s Companies, Inc. (LOW), Builders FirstSource, Inc. (BLDR), and Mohawk Industries, Inc. (MHK) for the long term.

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