Residential Remodeling Spending Continues to Gradually Grow
LAS VEGAS, Feb. 19 - Spending on residential improvements will continue to grow over the next two years at a gradual pace, according to experts at a press conference hosted by the National Association of Home Builders (NAHB) Remodelers during the International Builders' Show in Las Vegas. Professional remodelers from across the country agreed with the forecast, citing increased consumer confidence and demand.
NAHB predicts that remodeling spending for owner-occupied single-family homes will increase by 1.6 percent in 2019 and another 1.1 percent in 2020.
"Remodeler confidence continues to remain at a high level, as remodeling spending reached $172 billion in 2018," said 2018 NAHB Remodelers Chair Joanne Theunissen, CGP, CGR, a remodeler from Mt. Pleasant, Mich. "Although there is steady consumer demand in all areas of the country, the biggest challenges continue to be the costs of labor and materials to meet the interest."
"We're not only seeing more requests for proposals, but more homeowners are choosing to incorporate aging-in-place design into their homes," said Thomas Ashley, Jr., CAPS, CGP, CGR, a remodeler from Denham Springs, La. "The older housing stock combined with aging homeowners allow growth in that sector of the market."
"NAHB estimates that real spending on home improvements will continue to grow but at a slow pace of about 1.6 percent in 2019," said Danushka Nanayakkara-Skillington, NAHB's Assistant Vice President for Forecasting and Analysis. "Factors prohibiting stronger growth include the ongoing labor shortage and rising material prices."
The Remodeling Market Forecast is updated monthly and available for download with a subscription to housingeconomics.com.
ABOUT NAHB REMODELERS: NAHB Remodelers is America's home for professional remodelers, representing the more than 55,000 members of the National Association of Home Builders (NAHB) who are involved in the remodeling industry. Founded in 1982, the organization provides information, education and designation programs to improve the business and construction expertise of its members and to enhance the professional image of the industry. Its membership incorporates more than 100 local councils across the nation. Learn more about remodeling at nahb.org/remodel.
Follow NAHB Remodelers on Twitter: @NAHBRemodelers.
ABOUT NAHB: The National Association of Home Builders is a Washington-based trade association representing more than 140,000 members involved in home building, remodeling, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing and other aspects of residential and light commercial construction. NAHB is affiliated with 700 state and local home builders associations around the country. NAHB's builder members will construct about 80 percent of the new housing units projected for this year.