Home Remodeling Spending to Rise in 2013
Is it time to think about remodeling or improving your home? If so, you are not alone by any stretch of the imagination. As we pointed out this week, remember that when pondering about taking on a remodeling task, do not sweat the small stuff. The Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University point out that 2013 is due to display some of the highest spending figures for home remodeling that we have seen in recent memory. As it turns out, their biennial report to be released is now entitled, The U.S. Housing Stock: Ready for Renewal.
In the past, home improvement efforts did not contribute a great deal to the economy as growth remained stagnant. Today, however, this trend has been seen to reverse ever since the middle through the end of 2012 when projects seemed to skyrocket and activity in the industry ran rampant, which we also blogged about. As the Managing Director for the Joint Center, Eric Belsky, described it, Its encouraging to see the residential sector finally contribute to growth in our economy. In another blog post, we showed how not only is growthoccurringwithin the greater economy but also in thesheersize of homes both for new construction and home renovations.
So what is there to be expected for 2013? Harvards Leading Indicator of Remodeling Activity insist that we are approaching double-digit increases in spending in the home improvement/remodeling sector of the housing market. Belsky goes on to mention that during the first three quarters of 2012, investing in home remodeling contributed $1 of every $6 to the Nations Gross Domestic Product. Moreover, as 2013 continues on there is anticipated to be even more of a hefty load benefiting the GDP from this form of home expenditure. Kermit Baker, the Director of the Remodeling Futures Program at the Joint Center then had this to say in a closing statement, ...the solid momentum behind home building activity, existing home sales, low financing costs, and remodeling contractor sentiment all point to a solid start to the new year for home improvement spending. So where can you make improvements within your home? Its time to get those thinking caps on.
More Information: Boston Business Journal
