Home Remodeling On The Rise
According to a new report by the Joint Center for Housing Studies of Harvard University, spending on home improvement and remodeling hit an all-time high in 2016 and researchers expect the market for remodeling will continue to expand over the coming decade as America ages.
Analysts from the Harvard-based group indicate that baby boomers are one of the most significant drivers of that spending, predicting that homeowners above the age of 65 will account for more than one-third of all improvement expenditures by 2025.
Home improvement projects by all age groups is expected to increase approximately 2% annually through 2025, increasing approximately $50 billion, but segment including the baby boomer’s generation may have the biggest impact on that spending. Still, the Joint Center predicts that older homeowners may begin to sell towards the end of the decade, freeing more than 12 million homes for the younger generation, who may invest in significant upgrades for their home.
Another interesting point of the Harvard report considers the influence of home equity and home values on owners’ ability to afford upgrades. Owning a more expensive house not only gives a homeowner more reason to undergo improvements to protect an expensive investment, but gives that homeowner the ability to draw on a larger pool of equity and price appreciation to fund the investments themselves.
If you want to take part in the home remodeling boom in 2017, contact Ciarlone Brothers for a free estimate, and we can help you bring your home remodeling project to life.