flexiblefullpage - default
interstitial1 - interstitial
Currently Reading

Home Improvement Spending Reaches Record High

Advertisement
billboard -
News

Home Improvement Spending Reaches Record High

Harvard's JCHS reports record remodeling spending as building activity slows


March 12, 2019

Spending on remodeling activity hit a record of nearly $425 billion in 2017 as homebuilding struggled to meet the nation's growing housing needs following the Great Recession, according to Improving America's Housing 2019, a report produced every two years by the Remodeling Futures Program at Harvard's Joint Center for Housing Studies

“With new construction slowly recovering from historic lows, 40% of the country’s 137 million homes are at least 50 years old,” said Abbe Will, associate project director in the Remodeling Futures Program. “The aging of the housing stock has been a boon to the remodeling industry, with spending surpassing investment in homebuilding every year for over a decade.”

The steady uptick in house prices in many markets and the aging population are also driving increased spending on home improvements and repairs. Additionally, older households have higher homeownership rates than younger households, and many have the resources to afford major renovations. Households 55 and over account for half of all improvement spending by homeowners today.


Expanding the ability of owners to pay for improvement projects over time would generate considerable growth in the remodeling industry and help preserve and modernize the nation’s aging housing stock. Source: JCHS Improving America's Housing 2019.


At the same time, the number of owners under 35 is finally showing signs of a rebound following the housing crash, and so is their remodeling spending. With homeownership recovering, almost 7 million rental and vacant units were converted to owner occupancy in 2016 and 2017, and their owners invested $50 billion in improvements. 

“Over the next decade, the strong preference of older homeowners to age in place and the increasing difficulty of building affordable housing in many markets will continue to hinder the construction of new homes,” said Kermit Baker, director of the Remodeling Futures Program and a Pro Remodeler Thought Leader. “The remodeling industry will therefore retain its critical role in helping the country meet its housing needs.”

Tags


Add new comment

Plain text

  • No HTML tags allowed.
  • Web page addresses and email addresses turn into links automatically.
  • Lines and paragraphs break automatically.
5 + 2 =

Solve this simple math problem and enter the result. E.g. for 1+3, enter 4.

Related Stories

Two Leading Women in Construction Events Unite

Join us for the Women in Residential + Commercial Construction Conference in Nashville, October 25-27, 2023. 
 

Study Finds Remodelers’ Net Profits Declined

How far did net profits decline and what's influencing the drop?

Software Company to Award $150,000 to Home Service Company Owners

The grant program is intended to help strengthen small businesses

Builders Focus on Remodeling as New Construction Declines

Some builders hope to benefit from remodeling's strength, giving a slight boost to new construction confidence

A Lesson in Mentorship: Emma Wilson's Carpentry Journey

Combining passion with mentorship created a career in carpentry that this 19-year-old foreman never expected

Women in Trades: What Their Experiences Tell Us

The construction industry is in dire need of labor. Reflecting on women’s experiences shines a light on what needs to be done to welcome a stronger female workforce

HomeAdvisor May Pay $7.2 Mil to Contractors Per FTC Order

Contractors could receive a refund if affected by HomeAdvisor's "deceptive" tactics, according to the Federal Trade Commission

Home Flipping Market Reports 13-Year Low

Despite dropping profits, the flipping market remains at its third-highest level in a decade

Small Businesses at Risk for Cyber Crime, Says FBI

As larger companies improve their cyber security, online criminals are moving to softer targets

What's in Store for Remodeling in 2023? Harvard Answers

What’s driving the slowdown? Are there bright spots? JCHS Remodeling Futures program director shares some insights

Advertisement
boombox1 -
Advertisement
native1 -

More in Category




Advertisement
native2 -
Advertisement
halfpage1 -