Bathroom, kitchen remodels may account for majority of home improvement projects this year
Posted on Wednesday, March 6, 2013 at 4:30:13 PM
Recent reports from the National Association of Home Builders and Hanley Wood show the top consumer remodeling projects expected to occur in 2013 could be bathroom and kitchen updates, as well as replacing existing doors and windows.
According to the Leading Indicator of Remodeling Activity, annual homeowner spending may exhibit double-digit growth within the first three months of the year. An increase in remodeling activity may cause related improvement in the labor market.
"Homeowners' decision to remodel is not too surprising: To repair and replace old components and to upgrade amenities and that more home owners are happy staying put – at least for now – and instead are looking at how to enhance what they already have," said Home Loan Investment Bank title one representative Brian Harvey. "This upward swing will have a significant impact on contractors and the economy. Such an increase in growth will afford many remodelers the opportunity to increase profitability, which will result in their need and ability to hire more skilled workers to meet the demand. Improved employment will certainly bolster the economy in this sector resulting in growth and spending in these communities."
Consumer perception that housing values have stabilized in most markets could boost their willingness to resume their regular spending, and possibly pursue home improvement projects they have been putting off.
A combination of low residential financing costs, improving home sales and strengthening consumer confidence may lead to further positive growth in the housing market, and overall economy.