Residential Remodeling Spending Trending Up

Residential Remodeling Spending Trending Up

WASHINGTON – (RealEstateRama) — Spending on residential remodels will continue to grow at a modest pace in the next two years, according to experts at a press conference hosted by the National Association of Home Builders (NAHB) Remodelers at the International Builders’ Show (IBS) in Orlando, Fla. Professional remodelers from around the country agreed with the forecast, citing increased consumer confidence.

NAHB predicts that remodeling spending for owner-occupied single-family homes will increase 4.9 percent in 2018 over 2017 and an additional 0.6 percent 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.”

“NAHB estimates that real spending on home improvements will grow by nearly 5 percent in 2018, as below-normal rates of home building are creating an aging housing stock,” said Paul Emrath, NAHB vice president for survey and housing policy research. “Factors inhibiting stronger growth include the ongoing labor shortage and rising material prices.”

“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.”

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MBA

The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation’s residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,400 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field.

Contact:

Mortgage Bankers Association
1331 L Street, NW
Washington, DC 20005

Phone: (202) 557-2700

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