Remodeling Lifts Housing Industry See Where

Dated: 02/05/2015

Views: 1552

While the U.S. housing market continues to recover in fits and starts, the home improvement industry is on a roll, according to a new report from the Joint Center for Housing Studies of Harvard University. The researchers found that strong demand for remodeling could push spending on home improvement to record levels this year, even as the pace of new residential construction remains well below pre-bust levels. The improvement boom comes as many would-be trade-up buyers have decided to stay put and fix up or expand their existing homes, the researchers said. Federal and state subsidies for energy-efficient upgrades have also helped. And landlords looking to find new tenants or raise rents have spruced up rental properties. A stronger job market and increased consumer confidence may also be spurring homeowners to get started on a project they deferred when the job market was weaker. That may help explain why spending on discretionary home improvements rose by almost $6 billion between 2011 and 2013, the first increase since 2007. Some parts of the country have a greater inclination to fix up than others. In Washington, D.C., and Boston, homeowners shelled out nearly $5,000 a year on average for remodeling. Homeowners in Las Vegas spend about $1,700. Owners in metro areas spent 50 percent more on improvement projects on average than their nonmetro counterparts, primarily because of higher incomes and home values, the study said. Homeowners in D.C., Memphis and Boston were more likely to rely on professionals to get the work done, hiring the pros for 90 percent of the work they had done. Las Vegas and Houston homeowners are apparently a little handier with a hammer: They spent roughly 22 percent of their remodeling budgets on do-it-yourself projects. In some areas, those professionals may be harder to find than during the go-go building boom that preceding the 2008 housing collapse. Smaller remodelers—the ones who survived the bust—have been slowly rebuilding their payrolls. But many skilled workers have since found other lines of work. Aside from freshening up a kitchen or adding a new bathroom, the remodeling industry is finding at new lines of growth. Baby boomers are retrofitting their homes for better accessibility and other age-appropriate features. Improvements' energy-efficient components—from windows to heating and cooling systems—are also keeping remodeling contractors busy And while the millennial generation has proven to be less enamored with home ownership than prior American generations, the boom in demand for rental units has helped boost spending by landlords on fixing up apartments and rental housing, the researchers said.

John W. Schoen CNBC

Blog author image

Michael Krivacs

I grew up in Beach Haven on Long Beach Island and graduated from The American University with a BS in Business Administration. While in college I met my wife Holly. After school I worked as a Wage ....

Latest Blog Posts

Is It Worth It To Improve Your Home Or Move On

Homeowners are faced with numerous decisions throughout the years when it comes to their homes and how to manage them. A home is one of the biggest investments you'll ever make, so decision

Read More

The Summer Is Over

Summer season may be over,  but the fun doesn't end! Check out our great fall events and contact me for your spot for next.

Read More

Rising Rates And The Housing Market Oct 15 2018 126 1

Should rising interest rates concern you if you are thinking of buying of buying a house? That depends on a number of factors. Here are my observations on the matter. Regardless of what your

Read More

Beach Haven Recent Home Sales 3rd Quarter 2018

Be sure to bookmark this page to see all the latest real estate transactions in Beach Haven.BONUS LINKSAll Properties Currently For SaleMarket Activity and Statistical DataTEXT "LBIPROPERTYREPORT"

Read More