Most homeowners would assume that spring is the best time to begin a home remodeling project, but according to the latest data from Harvard’s Joint Center for Housing Studies, right now is actually the ideal time to get working on that bathroom or kitchen remodeling project.
The Lowell Sun says that researchers expect remodeling expenditures to pick up during the final stretch of 2015 and continue well into next year.
CNBC noted that the most likely cause of increased remodeling spending is that homeowners feel more secure about the value of their property — and with their overall finances — and therefore feel comfortable enough to make remodeling investments to increase that value.
It’s expected that homeowners will be spending around $154.5 billion on remodeling projects during the second quarter of 2016, which will be 6.8% higher than the $144.7 billion homeowners spent in the second quarter of 2015.
This past quarter (third quarter of 2015), homeowners spent $149.4 billion, and this was a 2.4% increase from one year ago.
“This year, a steady economy showed a significant improvement in residential remodeling; homeowners are more confident spending their money on much needed home improvements,” says Peter Kiwior, Owner, Pro-Home Services. “Replacement windows and roofing are among the most popular items customers have inquired about this year, however the best savings on windows, doors and LP Smartside siding are in the winter months and roofing in the early spring.”
A report from Houzz, a remodeling website, also found that the majority (two-thirds) of home renovation and remodeling businesses in the U.S. will have annual revenues for 2015 that are comparable to, or even higher than, earnings from pre-recession years. While national home improvement chain stores are expected to see a majority of the increased revenue, it seems possible that many independent remodeling and repair businesses will start seeing an increase in revenue as well.
Chris Herbert, managing director of Harvard’s Joint Center, agreed that the interest in remodeling projects is tightly connected to the currently-stable housing market.
“Home-improvement spending continues to benefit from the last year’s upswing in housing-market conditions including new construction, price gains and sales,” said Herbert in a statement.
“Strengthening housing-market conditions are encouraging owners to invest in more discretionary home improvements, such as kitchen and bath remodeling and room additions, in addition to the necessary replacements of worn components such as roofing and siding.”