Remodeling activity nationwide grew at a 4.5% annual rate between July and September, marking the 18th consecutive quarter of year-over-year gains, Metrostudy announced today as it released its latest Residential Remodeling Index (RRI).
Even better, Metrostudy forecasts remodeling activity will increase another 4.4% in 2017 and 3.3% in 2018. "Workers are now beginning to see more money in their pockets, and that, combined with the tight housing market, is driving remodeling activity across the country," said Mark Boud, chief economist at Metrostudy, which is a sister company to REMODELING.
“Additionally, tight supply in the housing market continues to push up home prices, allowing more owners to tap home equity lines of credit to invest in updating their homes," Boud said. "Over the next few years, as mortgage rates increase, we expect more people to choose to stay-put in their current homes and renovate, giving further support to a stable forecast for the remodeling industry.”
The RRI is formulated from several economic factors known to influence the undertaking of home improvement and replacement projects worth at least $1,000. Its baseline of 100 matches activity levels in the spring of 2007, which was the peak for remodeling activity a decade ago. The current score of 105.0 means we're 5.0% busier now than we were at that prior peak. In fact, the index has never been higher.
Along with the national report, Metrostudy also produces individual RRIs for America's 381 metropolitan statistical areas. Of those, 369 will see growth this year, Metrostudy predicts. That's six more markets that will show growth than it predicted after the second quarter. Growth overall will average 4.2%.
For more on the RRI, go to http://www.metrostudy.com/products-services/residential-remodeling-index/.
