The amount of money Americans spend renovating and improving their homes will grow to more than $320 billion by the middle of next year, according to Harvard University’s Leading Indicator of Remodeling Activity.
That would put it just shy of its inflation-adjusted peak reached before the housing crash in 2006.
“A healthier housing market, with rising house prices and increased sales activity, should translate into bigger gains for remodeling this year and next year,” Chris Herbert, managing director of Harvard’s Joint Center for Housing Studies, said in a statement. “As more homeowners are enticed to list their properties, we can expect increased remodeling and repair in preparation for sales, coupled with spending by the new owners who are looking to customize their homes to fit their needs.”
The projected 8 percent growth by the start of 2017 is far higher than the historical average growth rate of 4.9 percent.
More details here.
Source: Joint Center for Housing Studies of Harvard University.