Home Improvement, Remodeling Spending Expected to Rise
Home improvement spending will increase among nearly all of the country’s largest cities this year, according to new projections from the Joint Center for Housing Studies of Harvard University. Across 42 of the 46 largest metros, home improvement spending is predicted to increase between 1 and 13%. Only four of the 46 metros are expected to see a decline in spending. Stronger gains will come with remodeling in the large metros, with expected growth of nearly 5% this year whereas 2020 only experienced a 2% growth. A total of 14 metros are expected to have an even stronger remodeling growth with increases larger than 6%.
“Broad strength in house price appreciation, existing home sales, and residential construction suggest that many metros will see greater renovation activity this year,” says Abbe Will, Associate Project Director in the Remodeling Futures Program at the Center. “The largest remodeling spending gains are projected to occur in relatively more affordable metros in the Sunbelt, with over 9 percent growth expected in Oklahoma City, Tucson, Charlotte, Phoenix, and San Antonio.”
“Although home remodeling is a bright spot in the economy overall, owner improvement spending is projected to contract slightly in a few high-cost metropolitan areas including New York, Denver, Boston, and San Jose,” says Sophia Wedeen, a Research Assistant at the Center. “While other higher-cost metros—Washington, DC, Miami, San Francisco, Los Angeles, and Seattle—are expected to have only modest levels of spending growth between 1 and 3 percent this year.”