More Americans are ready to renovate their homes in the coming months and that will help boost both the housing market and the general economy, according to a new report by Harvard University’s Joint Center for Housing Studies.
The Center’s updated Leading Indicator of Remodeling Activity (LIRA) projects that spending on remodeling and repairs will surge 8.6 percent this year to $310 billion. That projection should bring renovation spending close to the 2006 peak of an inflation-adjusted $327 billion.
Overall, the bright outlook on renovations — for those who put their homes on the market and new or existing owners seeking to customize their homes. — should fuel more jobs for construction workers and building-supply companies. Work on bathrooms and kitchens is a popular area of renovation and plumbing work is often required. Homeowners contract with professionals like a plumber in Gilbert AZ to get the job done.
â€œOngoing gains in home prices and sales are encouraging more homeowners to pursue larger-scale improvement projects such as garage repairs with companies like https://coastalgaragedoors.biz/spring-repair/.This year compared to last with permitted projects climbing at a good pace,â€ says Chris Herbert, Managing Director of the Joint Center. â€œOn the strength of these gains, the level of annual spending for remodeling and repairs is expected to reach nearly $325 billion nationally by early next year.â€
The Center also projects strength in this sector into the next year, with activity further accelerating to 9.7 percent by the first quarter of next year.
The Center’s revised LIRA captures both improvements and repairs.
â€œOur freshly recalibrated indicator now forecasts a broader segment of the national residential remodeling market that includes both improvement and repair activity to the owner-occupied housing stock,â€ says Abbe Will, a research analyst in the Remodeling Futures Program at the Joint Center. â€œWith this re-benchmarking, the LIRA now more accurately sizes the remodeling market and continues to anticipate major turning points in the spending cycle.â€