For many homeowners, this year is shaping up to be the year to tackle home renovation and remodeling.
How do we know? Various industry groups that track data have been reporting their projections, and for the most part they are rosy.
1. More people plan to remodel.
Qualified Remodeler Magazine reports a study by LightStream, a division of SunTrust Bank, where more homeowners say they are planning to take on projects this year – 9% more than last year. In fact, a whopping 62% of homeowners plan some sort of renovation, meaning that more people are plan to remodel than plan to keep their homes as is.
2. Spending will probably increase as homeowners take on larger scale projects.
Also according to the LightStream study quoted in Qualified Remodeler, homeowners are planning to spend an average of $6,239 on renovations, as compared to $5,037 last year.
3. Overall, the remodeling industry expects to see growth this year.
We can expect to see an 11% increase in spending, according to the National Association of Home Builders Remodelers council. And Houzz Inc.’s 2016 State of the Industry also shows that residential renovation and design businesses are expecting a banner year, as more than half anticipate revenue growth of 10% or more. These projections are meant to help manufacturers and contractors scale production and workforce.
What accounts for this projected increase in remodeling?
It could reflect a number of current trends, including an increased sense of financial security among homeowners, which comes from improved jobs forecasts and a steady appreciation in home prices. Homeowners may be motivated to draw from savings, or they may be choosing to tap into improving home equity shares. Rising home prices also bring more homes to the market and increase sales. These improved home sales can spur home improvement as well, as sellers prepare their homes with necessary maintenance and buyers revamp existing home to fit their own needs.
Whatever the reason, we can expect 2016 to be the year of renovation. And our homes will become more beautiful and functional in the process.
