U.S. Residential Remodeling Looking Good
ORLANDO, Fla. – Spending on residential remodels will continue to grow at a modest pace this year and nominally in 2019, according to housing experts during the International Builders’ Show here on Jan. 9.
The National Association of Home Builders (NAHB) predicted that remodeling spending for owner-occupied single-family homes will increase 4.9% this year from 2017 levels, but only an additional 0.6% next year.
“Remodeler confidence has stabilized at a positive level, as remodeling spending topped $152 billion in 2017,” said 2017 NAHB Remodelers Chair Dan Bawden, a remodeler from Houston. “There is steady demand around the country, but the cost of labor and materials is challenging remodelers’ ability to meet that demand.”
“NAHB estimates that real spending on home improvements will grow by nearly 5% in 2018, as below-normal rates of home building are creating an aging housing stock,” said Paul Emrath, NAHB vice president for survey and housing policy research. “Factors inhibiting stronger growth include the ongoing labor shortage and rising material prices.”
“We’re not only seeing more requests for proposals, but more committed projects from home owners,” said Steve Cunningham, a remodeler from Williamsburg, Va. “In addition to regular updates and repairs, there’s been an uptick in more ambitious large remodel requests.”
In new construction, NAHB economists estimated a final total 1.21 million total housing starts in 2017, and overall production growing an additional 2.7% this year to 1.25 million units. On the multifamily side, NAHB is expecting multifamily starts to slide 1.6% lower this year to 354,000 units from a projected 360,000 total in 2017.
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