As the action heats up on The Block ahead of Sunday night’s finale, business information research firm IBISWorld predicts Australia’s DIY and renovation sector will grow by 15% over the next five years.
While cautious consumer spending is playing havoc with many Australian industries, players within the DIY and home improvement arena, including hardware retailers, professional help, garden suppliers and plant nurseries, are flourishing, with expected growth of 2% over 2011/12 to take sector revenue to $22.2 billion.
Over the coming year, the average Australian household is expected to spend $2,554 on home renovations and improvements, a figure IBISWorld General Manager (Australia) Karen Dobie anticipates will increase by 4% over the next five years to reach $2,651 per household by 2016/17. She said the trend is linked to the increase in residential housing prices, which is due to the housing shortage, easier access to finance and government incentives, amongst other factors.
“Many homeowners have been dissuaded from entering the property market due to the increasing cost of buying a home and the associated costs of moving. Consequently, these consumers have turned to DIY and renovating to add value to their homes, save and squeeze their budgets further.”
Other drivers identified by IBISWorld include declining consumer confidence, the DIY cyclical trend and the popularity of home renovation programs such as The Block.