Remodeling activity to tick up in 2016
Posted on Friday, July 17, 2015 at 4:43:35 PM
Homeowners are likely to seek more home improvement financing in 2016 than they did this year, as research shows that they intend to take on more remodeling projects next year.
The Joint Center for Housing Studies of Harvard University estimates that home improvement activity will likely tick up toward the start of 2016. The center's Leading Indicator of Remodeling Activity projects annual spending growth for home improvements will rise to 4 percent by the first quarter of 2016.
"A major driver of the anticipated growth in remodeling spending is the recent pick up in home sales activity," Chris Herbert, managing director of the Joint Center, explained in a press release. "Recent homebuyers typically spend about a third more on home improvements than non-movers, even after controlling for any age or income differences, so increasing sales this year should translate to stronger improvement spending gains next year."
The center found other signs that home improvement activity should increase at the start of 2016. For example, home improvement product sales have been growing and house prices have been going up across the country, both of which indicate more remodeling projects for homeowners in the near future.