Home Remodeling Spending to Skyrocket
Harvard University's Joint Center for Housing Studies LIRA report shows home remodeling spending is set to reach 12.7% quarterly growth by Q1 2013 to $128.9 billion.
There’s more good news for integrators focused on the existing home market. Following the news about strong new home starts in June by the U.S. Census Bureau, new data shows remodeling activity is also rising rapidly.
With home sales picking up and contractors seeing more positive business conditions in the future, remodeling activity in the U.S. is in a position to see accelerated growth by the end of this year and into 2013, according to the Leading Indicator of Remodeling Activity (LIRA) released today by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University.
The LIRA suggests that annual homeowner improvement spending may reach double-digit growth by the first quarter of 2013. The report estimates remodeling spending will reach $128.9 billion in Q1 2013, up 12.7 percent from the previous quarter. Meanwhile, the predicts remodeling spending will be up 2.3 percent during Q3 2012 and 5.9 percent in Q4.
“Warm weather in the first quarter temporarily bumped up remodeling activity in many areas,” says Eric S. Belsky, managing director of the Joint Center. “By the end of the year, however, positive market fundamentals are expected to kick in, moving the industry out of this ebb and flow period and into a new growth phase.”
“Home improvement activity has been bouncing around the bottom of this cycle for almost three years now, waiting for the industry to get some traction,” says Kermit Baker, director of the Remodeling Futures Program at the Joint Center. “Now, the combination of low financing costs, stronger consumer confidence, improving home sales, and the perception that home prices have stabilized in most markets across the country are encouraging owners to start working on the list of home improvement projects they have been putting off. ”
Jason has covered low-voltage electronics as an editor since 1990. He joined EH Publishing in 2000, and before that served as publisher and editor of Security Sales, a leading magazine for the security industry. He served as chairman of the Security Industry Association’s Education Committee from 2000-2004 and sat on the board of that association from 1998-2002. He is also a former board member of the Alarm Industry Research and Educational Foundation. He is currently a member of the CEDIA Education Action Team for Electronic Systems Business. Jason graduated from the University of Southern California. Have a suggestion or a topic you want to read more about? Email Jason at [email protected]
Follow Jason on social media:
ResearchHouzz: 45% of Residential Renovations Include Home Automation
Houzz Study: Master Bathrooms Go High Tech
Consumers Spend $8.9 Billion on Home Entertainment So Far This Year
CTA Forecasts Emerging Trends, Including 4K, Smart Home and VR
Study: ‘Smart Lighting’ Gains Rapid Consumer Awareness
View more on Research