Homeowners spending more on remodeling
LAS VEGAS – Jan. 25, 2016 – Spending on residential remodels will continue to trend upward, according to experts attending the National Association of Home Builders (NAHB) Remodelers at the International Builders' Show in Las Vegas.
NAHB projects that remodeling spending for owner-occupied single-family homes will increase 1.1 percent in 2016 over 2015, and another 1.9 percent in 2017.
"Our remodeler members have regained confidence in the market as homeowners move forward with new remodeling projects, as reflected in the positive fourth quarter results of NAHB's Remodeling Market Index," said 2016 NAHB Remodelers Chair Tim Shigley. "NAHB remodelers looks forward to working in a strengthened market as remodeling continues to increase in popularity."
"After recent revisions, Census estimates now indicate that improvements to owner occupied housing increased at a real rate of 1.3 percent last year, which is consistent with NAHB's expectations and our measure of remodelers' sentiment," said Paul Emrath, NAHB's vice president for survey and housing policy research.
"Going forward, we expect this modest growth in the market to continue, fueled in part by steady appreciation in house prices that will enable owners to tap into their home equity to fund remodeling projects."
Jeff Grantham, a remodeler from Petoskey, Mich., noted one trend that could impact future remodeling projects, however: "While the economic recovery has brought about a surge of remodeling activity for second homes in our market, access to credit continues to hamper the remodeling market's full potential locally," Grantham said.
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