The home-improvement market has grown steadily since the COVID-19 epidemic. The trend won’t stop 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. Continue reading. The home-improvement trend has exploded since March 2020’s COVID-19 pandemic. With the outbreak of COVID-19, people have spent more time inside than outside. This has led to a significant increase in home maintenance and improvement spending. 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. Inflation is also at its lowest point in 31 years, which fuels the desire to improve your home.

The economy has been recovering and property prices have risen to an unprecedented level. Many homebuyers are now having to spend more to get a house. High home prices have encouraged potential homebuyers to invest in improving their current homes, rather than buying an expensive one. The home-improvement industry has seen a rise in demand as both old and new homeowners opt for renovations. 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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