As the housing market feels the continued strain of low supply, an increasing share of households and would-be buyers are solving their housing woes by remodeling.
A recent report by the Harvard University Joint Center for Housing Studies (JCHS) finds that the rate of home remodeling activity is rising at a strong and steady pace, with expected growth expected to remain above 6 percent year-over-year through the second quarter of 2018.
What is distinguishing this boom from typical home remodeling activity is the overall shortage of housing in the country combined with the strong recovery of housing prices in many areas, leading many to explore home renovations rather than venture into the market.
Quarterly gains in home improvement spending according to the Leading Indicator of Remodeling Activity
“The remodeling market continues to benefit from a stronger housing market and, in particular, solid gains in house prices, which are encouraging owners to make larger investments in their homes,” explains Chris Herbert, Managing Director of JCHS. “Yet, weak gains in home sales activity due to tight inventories in many parts of the country is constraining opportunities for more robust remodeling growth given that significant investments often occur around the time of a sale.”
As new home construction activity drops, the remodeling surge has been a boon for building contractors, and home improvement giants Lowes and Home Depot are reporting their highest gains since 2004 over the past fiscal year.
While growth in remodeling activity is expected to begin slowing in the latter half of next year, it remains to be seen what other band-aids homeowners will use to address the shortage of homes for sale — or how various metropolitan areas will respond to ease the shortage.
This article originally published at https://dc.urbanturf.com/articles/blog/amid_housing_inventory_shortage_homeowners_fuel_remodeling_boom/12837.
Most Popular... This Week • Last 30 Days • Ever
The entry to This Week's Find sits on the pedestrian-only strip along the Georgetown ... read »
Here's what you need to know about reporting profit made from the sale of your home.... read »
Crescent Communities recently filed plans with Montgomery County for Novel Bethesda, ... read »
Steuart Investment Company and BXP have filed renderings for alternate ideas for how ... read »
Today, UrbanTurf is looking at the five DC neighborhoods that have been the most affo... read »
The preferred mortgage product among most home buyers is the fixed-rate mortgage. How... read »
To help home buyers and sellers both novice and seasoned, UrbanTurf is running a seri... read »
The development for four parcels at The Yards from Brookfield Properties and the Menk... read »
Plans for the New York-based eatery appear to be moving forward.... read »
Eights month after a new proposal to redevelop part of the Takoma Metro station was p... read »
With this weekend's DC houseboat tour a day away, UrbanTurf thought it only fitting t... read »
President Obama travels to Denver this morning to sign the stimulus bill that has bee... read »
In this week's installment of Ask An Agent, a reader wonders if there is a rule for h... read »
As The Wharf prepares to begin construction, DC's houseboat community heads to its ne... read »
In this week's installment of Ask An Agent, a reader asks a fairly common question th... read »
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro