Homebuilders expect consumer confidence and demand to boost home renovation spending within the next two years, according to the National Association of Home Builders.
In fact, NAHB predicts that remodeling spending for owner-occupied single-family homes will rise by 1.6% in 2019, followed by another 1.1% in 2020.
But as more and more Americans look to remodel their homes, homebuilders around the country fear what that means for their wallets.
“Remodeler confidence continues to remain at a high level, as remodeling spending reached $172 billion in 2018," NAHB Remodelers Chair Joanne Theunissen said. "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."
The industry, like many in the country, grapples with affordability concerns, following taxing regulations that have hindered growth.
Notably, a new report from Houzz explains that although the remodeling industry is likely to have another successful year, many experts are proceeding with caution.
“Residential construction and design service professionals large and small have sustained a remarkable multi-year run with upper-single to double-digit revenue growth,” Houzz Principal Economist Nino Sitchinava said. “Based on qualitative feedback, the recent deceleration in growth of construction services is likely a function of capacity constraints due to labor shortage, rather than a contracting demand.”
That being said, the most recent employment Situation Summary report from the U.S. Bureau of Labor Statistics revealed construction jobs increased 52,000 in January, rising from 38,000 in December 2018.