CAMBRIDGE, MA – The remodeling market is expected to remain strong in 2014, with double-digit growth through mid-year, according to the Leading Indicator of Remodeling Activity (LIRA) released today by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University.
The home remodeling market will reach $144.7 billion in first quarter 2014, Remodeling totaled $140 billion in the 4th quarter 2013, rising to $153.8 billion by the third quarter.
“The strong growth for this cycle may start to ebb a bit beginning around midyear,” says Kermit Baker, director of the Remodeling Futures Program at the Joint Center. “By that time, we’ll be approaching the pre-recessionary levels of spending, and with borrowing costs starting to creep back up, growth rates are likely to slow some.”
Double-digit gains in annual home improvement spending projected for the first half of the year should moderate to just under 10% by the third quarter, Kermit says.
One indicator of a strengthening remodeling market is the growth of consumer renovation-oriented home improvement and design sites, frequently offering links to home improvement professionals.
Lowe's introduced Porch.com, a data-driven home improvement professional finder. Home Depot acquired the RedBeacon service and Angie's List, Houzz and other sites are continuously expanding programs catering to design and remodeling professionals.
Houzz, a leading online platform for remodeling and design, announced this week it was expanding globally, with offices in the United Kingdom, Germany and Australia.
Have something to say? Share your thoughts with us in the comments below.