Increased consumer confidence and demand are driving spending on residential improvements, with the market promising to be even more robust within the next two years, according to the National Association of Home Builders (NAHB).
Last year, remodeling spending reached $172 billion, and in 2019, it is expected to increase 1.6 percent for owner-occupied single-family homes, NAHB predicted. In 2020, it will grow an additional 1.1 percent. The ongoing labor shortage and rising material prices have been prohibiting stronger growth of the sector.
“Although there is steady consumer demand in all areas of the country, the biggest challenges continue to be the costs of labor and materials to meet the interest,” NAHB Remodelers Chair Joanne Theunissen said.
One sector within the remodeling market that could see particular growth is aging-in-place design that allows seniors to safely live independently for longer, according to NAHB.
The latest U.S. census results have shown that senior citizens make up the fastest-growing population in the United States, with the total number of individuals over 65 projected to nearly double before 2050.
“We’re not only seeing more requests for proposals, but more home owners are choosing to incorporate aging-in-place design into their homes,” remodeler Thomas Ashley, Jr. told NAHB. “The older housing stock combined with aging home owners allow growth in that sector of the market.”
According to the latest report by Houzz, more than half of companies specializing in residential renovation and design have a positive outlook for 2019. However, 35 to 61 percent of industry groups expect the national economy to deteriorate, with the outlook on local economies shifting to largely neutral.