Spending for home improvement is expected to rise 4 percent by the first quarter of 2016, according to the recent Leading Indicator of Remodeling Activity report released by Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University.
“A major driver of the anticipated growth in remodeling spending is the recent pick up in home sales activity,” center’s managing director Chris Herbert said in a statement. “Recent homebuyers typically spend about a third more on home improvements than non-movers, even after controlling for any age or income differences, so increasing sales this year should translate to stronger improvement spending gains next year.”
“Other signals of strengthening remodeling activity include sustained growth in retail sales of home improvement products and ongoing gains in house prices across much of the country,” added Abbe Will, a research analyst in the Remodeling Futures Program. “Rising home prices means rising home equity, which should encourage improvement spending by a growing number of owners.”