Home renovations are on the rise, according to the Leading Indicator of Remodeling Activity (LIRA) just released by the Remodeling Futures Program at Harvard University. The amount of spending on home remodeling and repair is expected to increase 8 percent by the start of 2017, while the historical average is just 4.9 percent.
"By the middle of next year, the national remodeling market should be very close to a full recovery from its worst downturn on record," said Abbe Will, Research Analyst in the Remodeling Futures Program at the Joint Center.
American homeowners are expected to spend $321 billion on renovations in 2016. When adjusted for inflation, that number is nearly as much as the 2006 peak for remodeling spending, and offers a correction of sorts from the 2008 housing crash, when there was a dramatic decrease in such expenditures.
Researchers cite a fully recovered housing market and rising home sales as the main reason more homeowners are calling in contractors.
"As more homeowners are enticed to list their properties, we can expect increased remodeling and repair in preparation for sales, coupled with spending by the new owners who are looking to customize their homes to fit their needs," said Chris Herbert, Managing Director of the Joint Center for Housing Studies.