Each quarter, the Remodeling Futures Program of the Harvard University Joint Center for Housing Studies in Cambridge publishes the Leading Indicator of Remodeling Activity, a benchmark that shows historical and predicted activity for home renovations. Since late last year, outlook for home renovations has been optimistic: in October 2015, LIRA announced that home improvement and repair spending was projected to increase from 2.4 percent in the third quarter of 2015 to more than 6.8 percent in the second quarter of 2016.
Last week, LIRA came out with even better news for the industry: The organization anticipates nearly 8 percent growth in home improvement and repairs spending through 2017, which is nearly double the historical average of 4.9 percent.
So why are renovations on the rise? For one, the economy is finally on the rebound, leaving more homeowners with the savings and/or credit they need to invest in their homes. The real estate market (especially in the Boston area) is also on the uptick after a years-long slump, meaning an increasing number of homeowners are looking at their homes as worthy investments. And finally, speaking of investments, not only do renovations make a home a better place to live in the present, but much of the money put into home renovations can be recouped during a sale in the future, especially in regards to kitchen and bath remodeling.
Or, as Chris Herbert, Managing Director of the Joint Center, put it “A healthier housing market, with rising house prices and increased sales activity, should translate into bigger gains for remodeling this year and next. As more homeowners are enticed to list their properties, we can expect increased remodeling and repair in preparation for sales, coupled with spending by the new owners who are looking to customize their homes to fit their needs.”
To get started on your home renovation, get in touch with Divine Design Build or stop by our Wellesley, Mass. showroom and get inspired by our full-scale kitchen and bath models.