Remodeling activity expected to pick up as 2014 progresses
Posted on Wednesday, February 5, 2014 at 8:56:03 AM
The recent downturn in remodeling spending and home improvement financing may be no more, as industry experts expect this segment to shift back up during the coming year.
According to the National Association of Home Builders, residential remodeling spending on single-family homes may increase as much as 2.5 percent in 2014 compared to 2013, and climb a further 1.8 percent the following year.
"We are predicting slow and steady growth in remodeling activity throughout 2014 and into 2015," said Paul Emrath, NAHB's vice president for survey and housing policy research. "That outlook is consistent with the indicators of future activity in our recent Remodeling Market Index survey. It's a positive sign that whole house remodels have rebounded somewhat as home equity levels increased in 2013, though traditional bath and kitchen projects remain the most popular remodels."
This assertion was supported by the Joint Centers for Housing Studies of Harvard University's Leading Indicator of Remodeling Activity, released by the Remodeling Futures Program. The recent LIRA report projected double-digit gains in home improvement spending over the first half of 2014. This is likely due to growth in home values, housing starts and existing-home sales. All of these general gains will further contribute to homeowners spending more on their own properties.