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Home remodeling will speed up in 2016

Posted on Tuesday, November 10, 2015 at 10:43:42 AM

Anyone planning to replace their roof or add some energy efficient home improvements will have plenty of company going into 2016. According to the Leading Indicator of Remodeling Activity (LIRA) released last month by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University, spending on home improvements will accelerate in 2016. Specifically, annual spending is projected to jump from the 2.4 percent recorded last quarter to 6.8 percent in 2016's second quarter. 

Chris Herbert, the managing director of the Joint Center, stated that "Home improvement spending continues to benefit from the last years' upswing in housing market conditions including new construction, price gains, and sales. Strengthening housing market conditions are encouraging owners to invest in more discretionary home improvements," including building additional rooms and remodeling baths. 

Last week the National Association of Home Builders issued a press release which found that builder confidence in the single-family 55-plus housing market stayed strong in the third quarter. The confidence rating, measured on the NAHB's Housing Market Index, increased to 60, up three points from the second quarter. The 55-plus market, like the overall housing market, continues to display positive growth.