Spending on residential remodels will continue to grow at a modest pace in the next two years, said industry experts at a press conference hosted by NAHB Remodelers at the International Builders’ Show in Orlando.
NAHB predicts that remodeling spending for owner-occupied single-family homes will increase 4.9% in 2018 and another 0.6% in 2019.
“Remodeler confidence has stabilized at a positive level, as remodeling spending topped $152 billion in 2017,” said 2017 NAHB Remodelers Chair Dan Bawden, CAPS, CGP, CGR, GMB, a remodeler from Houston. “There is steady demand around the country, but the cost of labor and materials is challenging remodelers’ ability to meet that demand.”
Economists at NAHB elaborated on several reasons behind the projected growth.
“NAHB estimates that real spending on home improvements will grow by nearly 5% in 2018, as below-normal rates of home building are creating an aging housing stock,” said Paul Emrath, NAHB’s vice president for survey and housing policy research. “Factors inhibiting stronger growth include the ongoing labor shortage and rising material prices.”
Professional remodelers from around the country agreed with the forecast, citing increased consumer confidence.
“We’re not only seeing more requests for proposals, but more committed projects from home owners,” said Steve Cunningham, CAPS, CGP, a remodeler from Williamsburg, Va. “In addition to regular updates and repairs, there’s been an uptick in more ambitious large remodel requests.”