Expenditures for home improvements should see healthy gains in 2016, according to the most recent Leading Indicator of Remodeling Activity measure compiled by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University.
The LIRA projects annual spending growth for home improvements will accelerate from 4.3 percent in the first quarter of 2016 to 7.6 percent in the third quarter. By then, the level of annual spending in nominal terms is anticipated to surpass the previous peak set in 2006.
“2016 is looking to be a stronger year for home renovation activity compared to 2015 thanks to the continued recovery in the owner-occupied housing market,” center managing director Chris Herbert said in a statement. “In most markets across the country, rising house prices are bringing more homes to the market and increasing sales, which is a large driver of home improvement activity.”
“The remodeling market has steadily improved in recent years with homeowners incorporating larger, more discretionary projects into their home improvement priorities,” research analyst Abbe Will added. “The real test this year will be whether the industry can clear ongoing bottlenecks in labor availability and consumer financing concerns to fully meet this increased demand.”
For more, visit www.jchs.harvard.edu.