With the economy looking up, recent LIRA projections anticipate more homeowners will spend on remodeling projects through early next year, with growth accelerating four percent. LIRA, or the Leading Indicator of Remodeling Activity, is released by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University.
“A major driver of the anticipated growth in remodeling spending is the recent pick-up in home sales activity,” says Joint Center Managing Director Chris Herbert. “Recent homebuyers typically spend about a third more on home improvements than non-movers, even after controlling for any age or income differences, so increasing sales this year should translate to stronger improvement spending gains next year.”
“Other signals of strengthening remodeling activity include sustained growth in retail sales of home improvement products and ongoing gains in house prices across much of the country,” explains Abbe Will, a research analyst in the Remodeling Futures Program. “Rising home prices means rising home equity, which should encourage improvement spending by a growing number of owners.”
Source: Joint Center for Housing Studies
Published with permission from RISMedia.