Remodeling spending is expected to increase in 2017 with the bulk of the top dollar happening in cities you might not expect…
If you haven’t heard or seen already, the construction industry is off to a great start in 2017. More good news is on the horizon, too. According to data from the Harvard Joint Center for Housing Studies, home improvement/remodeling is expected to increase in 43 of 50 major US markets this year. The breakdown suggests that these major markets will see an average growth of 6.8% over 2017.
(Harvard Joint Center for Housing Studies)
The majority of the large spending is happening on the east coast in places like Boston, Providence, Richmond, and Hartford, among many others. In Boston, for example, 2017 is expected to see a 16.5% increase, in Providence, 17.9%. These huge increases in spending should get anyone in the area excited, with strong home sales driving the growth. Other areas worth mentioning are Cincinnati, Kansas City, Cleveland, and Milwaukee where there seems to be a steady demand for housing with prices not out of reach.
Not all major metro markets are expected to see this kind of growth, though. Places like San Jose, San Antonio, Las Vegas and Los Angeles are expected to see between 1-3% growth. Those experiencing low growth have an established market that has been hot for years. Some are nearing the peak of their market cycle.
Perhaps the most interesting and exciting of all locations is the southern metro market. Homebuilding and remodeling is off to a great start in places like Jacksonville, Orlando, Atlanta, and Charlotte. These locations have seen a revival in residential spending. More homes are being built as more folks move to the area.
These numbers are based off two different measures of housing demand – single family starts and growth in existing home sales. These are the best indicators of national remodeling activity. The broad consensus is that the expensive markets will reach a peak. These are areas like San Francisco and Los Angeles. While spending will continue to increase where homes are affordable, places like Jacksonville and Atlanta.
Click here to view the original data from the Harvard Joint Center for Housing Studies.
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