The $300 billion annual home remodeling industry is expected to display continued strong growth throughout 2015, solidifying a full recovery from the economic recession of several years ago, a Harvard University study reveals.
According to a February 3 Scotsman Guide article, the Harvard Joint Center for Housing Studies report revealed that spending on home remodeling projects will rise by a healthy 5% this year, reaching its pre-recession level of $324 billion.
This growth in consumer spending for home remodeling projects such as kitchen and bathroom upgrades reflects a healthier economic outlook overall and a strong housing market, as people tend to put these projects off during tough financial times when home prices drop. With house prices on the rise, homeowners are looking to stay put and increase their homes’ value, rather than pursuing trade-up home purchases.
“Customers today are more educated and demand quality products to be installed on their houses,” says Peter Kiwior, Owner, Pro Home Services Inc. “A perfect example is the increase in installation of engineered wood siding products like LP Smartside, cement based siding product from James Hardie, designer shingles from GAF and new to the market fiberglass windows.”
In addition to the recent rise in home prices, more Americans are also taking the steps to free themselves of debt accrued during the recession years, leaving them with more disposable income to use toward repairs and renovations, the Scotsman Guide reports. The Federal Reserve reports that the percentage of disposable income used toward paying off debt has fallen to its lowest level since the 1980s.
So what will be the most popular home remodeling projects in 2015?
Kitchen and bathroom upgrades, like new sinks, showers and tiles, will continue to be the most popular things for homeowners to pursue, with both projects offering a substantial return on investment and a boost in a home’s resale value. Some other popular remodels to look for this year include new front doors, window replacement and new siding.
So if you’ve been hesitating about that home renovation you’ve been wanting, 2015 might just be the best time to finally do it.