Stable Growth Forecast for Home Improvement and Repair Market in 2017
The latest forecast projects national spending for home remodeling and repairs will grow to $317 billion in 2017, an increase of 6.7% from last year.
Compared to the previous quarter's LIRA release, the updated remodeling report indicates lower and less cyclical growth in homeowner improvement and repair spending in 2014 and 2015, a somewhat lower market size estimate, and also more modest projections for remodeling market growth in 2017.
CAMBRIDGE, Mass. – Sustained momentum in home remodeling and repair spending is forecast for 2017, according to the Leading Indicator of Remodeling Activity (LIRA) released by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University.
LIRA projects that annual growth in home improvement and repair expenditures will remain elevated throughout 2017 with spending levels ending the year up 6.7% at $317 billion, on par with the 6.9% growth estimated for 2016.
“Growth in home prices is continuing at a healthy pace and encouraging homeowners to make remodeling investments,” says Chris Herbert, managing director of the Joint Center for Housing Studies. “Home sales are remaining on an upward trajectory, as well, and this coupled with continued growth in remodeling permit activity suggests another strong year for home improvements.”
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Although above-average growth is expected in 2017, market size projections were lowered slightly with the recent release of new benchmark data from the American Housing Survey, says Abbe Will, research analyst in the Remodeling Futures Program at the Joint Center.
“Spending in 2014 and 2015 was not quite as robust as our LIRA model estimated, growing 11.3% over these two years compared to 14.3% as estimated,” says Will.
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