Despite a slight dip during 2014 and the first part of 2015, residential remodeling activity should pick up and annual spending will increase 2.9 percent by year’s end, according to the Joint Center for Housing Studies of Harvard University’s Leading Indicator of Remodeling Activity.
Spending at the beginning of 2015 is estimated to be around $142.7 billion, which is expected to decrease to $138.4 billion in the second quarter before increasing to $140.8 and $147.4 in the third and final quarters, respectively.
“Moving forward, signs of higher growth in remodeling activity include strengthening retail sales of building materials,” said Abbe Will, a research analyst in the Remodeling Futures Program at the Joint Center, in a statement. “Also, rising home equity and still-favorable interest rates continue to encourage owners to reinvest in their homes.”
