Remodeling Expenditures See Strong Growth in 2021
A surge in home remodeling activity is causing an increase in maintenance and home improvement expenditures benefitting the residential construction industry.
Harvard’s Joint Center for Housing Studies is monitoring the rise of repair and improvement sales and their effect on growing demands within a booming housing market.
“Residential remodeling continues to benefit from a strong housing market with elevated home construction and sales activity and immense house price appreciation in markets across the country,” says Carlos Martín, Project Director of the Remodeling Futures Program at the Center. “The rapid expansion of owners’ equity is likely to fuel demand for more and larger remodeling projects into next year.”
“With these tailwinds, annual improvement and repair expenditures by homeowners could reach $400 billion by the third quarter of 2022,” says Abbe Will, Associate Project Director of the Remodeling Futures Program. “Yet there are several headwinds that could still taper the expected growth in remodeling spending including the rising costs of labor and building materials, as well as increasing interest rates.”