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Shares of Home Depot (HD) - Get Home Depot, Inc. Report and Lowe's (LOW) - Get Lowe's Companies, Inc. 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.

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"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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