The coming year is expected to be another robust one for residential renovations and repairs with growth accelerating as the
year progresses, according to our latest Leading Indicator of Remodeling Activity (LIRA). The LIRA projects that homeowner spending on
improvements and repairs will approach $340 billion in 2018, an increase of 7.5
percent from estimated 2017 spending.
Steady gains in the broader economy, and in
home sales and prices, are supporting growing demand for home improvements. We expect the remodeling market will also get a boost this year from ongoing
restoration efforts in many areas of the country impacted by last year’s
record-setting natural disasters.
Despite
continuing challenges of low for-sale housing inventories and contractor labor
availability, 2018 could post the strongest gains for home remodeling in more
than a decade. Annual
growth rates have not exceeded 6.8 percent since early 2007, before the Great
Recession hit.
For more information about the LIRA, including how it is calculated, visit the JCHS website.
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