Shares of Home Depot (HD) - Get Report and Lowe's (LOW) - Get Report were climbing over 1.8% during mid-morning trading on Tuesday after The Wall Street Journal reported that a shortage of new single-family homes across the U.S. will ignite a boom in existing home renovation spending.

The shortage of homes is pushing more and more potential buyers away from the market, and as a result they will turn to home improvements rather than purchase a new home.

Americans are projected to spend a record $316 billion in home remodeling this year, an increase from $296 billion a year ago, according to Harvard University's Joint Center for Housing Studies.

"We turn away as much work as we do," said Bill Halliday, owner of Home Improvements of Vero Beach in Florida. "It used to be you could call me and I could get somebody to you in a couple of days.

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