Remodeling spending rose 6.6 percent in the four quarters ending in September. The rate is expected to accelerate before easing back next year.
MarketWatch reports that home improvement spending is slated to grow 8.3 percent through the second quarter of 2017, taking it past the 2006 peak for the first time. This data comes from The Leading Indicator of Remodeling Activity, a report released this week by The Joint Center for Housing Studies at Harvard University.
Remodeling spending may be up because of the conditions of the housing market. People are finding it tougher to find and buy an affordable house, so staying put is a better option. Home improvement spending will not keep rising forever, though.
Remodelers, just like builders of new homes, are reporting stronger activity, but “ongoing labor shortages continue to challenge their ability to meet the increased demand,” the group said in a release.