Remodeling activity remains strong

Author:
Publish date:

Homeowners are expected to increase spending on improvements and repairs at a solid clip over the coming year, according to the Leading Indicator of Remodeling Activity released by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University.

The LIRA projects that annual growth in homeowner remodeling expenditure will taper somewhat in the first half of 2019, but still remain around 7 percent.

“A growing economy and stronger job market are boosting owners’ willingness to invest in home improvements,” Chris Herbert, managing director of the Joint Center for Housing Studies, said in a statement. “Rising home values and increased home equity levels are also encouraging more owners to do larger upgrade and replacement projects.”

“Although the projected growth for remodeling activity remains strong, the low inventory of existing homes for sale is holding back even larger gains, since significant remodeling and repair often occurs around the time of a sale,” added Abbe Will, associate project director in the Remodeling Futures Program at the Joint Center. “Even so, annual spending on residential improvements and repairs by homeowners is expected to reach nearly $350 billion by the middle of next year.”

For more information, please visit www.jchs.harvard.edu.

Related Articles

Softening of remodeling market predicted

After several years of solid acceleration, annual growth in national home improvement and repair spending is expected to soften in 2019, according to the Leading Indicator of Remodeling Activity from the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University.

Continued growth predicted for remodeling market

The robust pace of spending on home renovations and repairs is expected to stay strong over the coming quarters, according to the Leading Indicator of Remodeling Activity from the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University.