According to the National Association of Home Builders, remodeler spending on residential improvements will continue to grow in the U.S. over the next two years at a gradual pace. Professional remodelers from across the country agreed with the forecast, citing increased consumer confidence and demand.
NAHB predicts that remodeling spending for owner-occupied single-family homes will increase 1.6 percent in 2019 and another 1.1 percent in 2020.
"Remodeler confidence continues to remain at a high level, as remodeling spending reached $172 billion in 2018," said 2018 NAHB Remodelers Chair Joanne Theunissen, CGP, CGR. "Although there is steady consumer demand in all areas of the country, the biggest challenges continue to be the costs of labor and materials to meet the interest."
"We're not only seeing more requests for proposals, but more home owners are choosing to incorporate aging-in-place design into their homes," said Thomas Ashley, Jr., CAPS, CGP, CGR, a remodeler from Denham Springs, La. "The older housing stock combined with aging home owners allow growth in that sector of the market."
"NAHB estimates that real spending on home improvements will continue to grow but at a slow place of about 1.6 percent in 2019," said Danushka Nanayakkara-Skillington, NAHB's Assistant Vice President for Forecasting and Analysis. "Factors prohibiting stronger growth include the ongoing labor shortage and rising material prices."
U.S. home prices increased 6.7% in September 2020, compared with September 2019, marking the fastest annual acceleration since May 2014. On a month-over-month basis, home prices increased by 1.1% compared to August 2020.
The National Association of Home Builders Q3, 2020 Remodeling Market Index posted a reading of 82. This is a signal of residential remodelers' strong confidence in their markets, and for projects of all sizes.
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