Market Update: Home remodeling continues moderate growth

December 10, 2014

Home improvement spending continues toward more moderate growth

Reflecting the slow pace of recovery in the overall housing market, the home remodeling industry is expected to continue its path of moderating growth, according to the Leading Indicator of Remodeling Activity (LIRA) released by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. The LIRA projects annual growth in home improvement spending to ease to 3.1 percent through the second quarter of 2015.

Note on LIRA model: An important change was made to the LIRA estimation model beginning with the first quarter 2014 release. With the upheaval in financial markets in recent years, the traditional relationship between interest rates and home improvement spending has significantly deteriorated. As a result, long-term interest rates have been removed from the LIRA estimation model. 

LIRA is designed to estimate national homeowner spending on improvements for the current quarter and subsequent three quarters. The indicator, measured as an annual rate-of-change of its components, provides a short-term outlook of homeowner remodeling activity and is intended to help identify future turning points in the business cycle of the home improvement industry. LIRA is released by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University in the third week after each quarter’s closing. The next LIRA release date is January 15, 2015.

The Remodeling Futures Program, initiated by the Joint Center for Housing Studies in 1995, is a comprehensive study of the factors influencing the growth and changing characteristics of housing renovation and repair activity in the United States. The program seeks to produce a better understanding of the home improvement industry and its relationship to the broader residential construction industry.

NKBA announces 2015 30 Under 30 Award recipients

The National Kitchen and Bath Association (NKBA) will recognize the 2015 30 Under 30 at the upcoming Kitchen & Bath Industry Show (KBIS), to be held Jan. 20 to 22, 2015, in Las Vegas. NKBA will not only acknowledge these talented young individuals, but also help them immerse and apply themselves to new opportunities for growth and development in support of the industry.

In a program called “Introductions to the Industry,” the 2015 30 Under 30 group will make its debut on Jan. 20, at 10:15 a.m. at Center Stage, NKBA Booth #N2163 and be introduced to the extensive gathering of industry professionals at KBIS.

At KBIS 2015, the newly inducted group will work on obtaining valuable information on a specific topic from exhibitor feedback and share their findings during a presentation on Jan. 21 at Center Stage. This year the 30 Under 30 recipients will work in 10 groups of three to conduct research on design trends such as sustainability, aging in place, and multigenerational, as well as business trends such as global influences, products, systems, and more. In this lively session, the 30 Under 30 group will present their research on critical kitchen and bath industry trends and answer questions regarding any issues that professionals face in their businesses.

The candidates selected for the 30 Under 30 program at KBIS 2015 include: Emily Alt, DreamMaker Bath & Kitchen; Melissa Austin, AKBD, Affinity Stoneworks/Affinity Kitchen and Bath; Jamie Banfield, Jamie Banfield Design; Jonathan Barfell, Jenn-Air; Krista Benton, AKBD, CabinetWerks a div. of Orren Pickell Building; Danielle Bohn, AKBD, Creative Kitchen Designs, Inc.; Stephanie Brick, Associate AIA, Nicely Done Kitchens & Baths; Deena Castello, Cabochon Surfaces & Fixtures; Michelle Eglington, Euro-Line Appliances West Inc.; Monty Elsabbagh, Canadian General Contractors Group; Kara Feinberg, Allied Kitchen and Bath; Megan Greve, Edmond Kitchen & Bath LLC; Katharine Hatcher, Southern Kitchens; Jag Khangura, Kitply Industries; Jennifer Murphy, Associates in Building + Design; Jessica Petrino, Yale Appliance and Lighting; Kerri Plazza, Cabinets Extraordinaire; Chelsey Preuss, Minnesota Cabinets, Inc.; Leanne Richard, The Home Depot; Amanda Rivera, Moen Incorporated; Katie Roberts, Amerock; Victoria Ross, Cosentino; Diana Runyon, Select Kitchen and Bath; Nikki Sayers, Huntwood Cabinets; Damara Scheeler, North Star Remodeling; Megan Siason, Marrokal Design & Remodeling; Tyl Thomas, Panda Kitchen & Bath Expo; Alexandria Van Nuys, Lane Homes & Remodeling; Brynne Welper, The Home Depot; Elizabeth Wesley, Lifestyle Kitchen Studio. 

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