Home remodeling activity is on pace for a double-digit climb in 2014, according to the Joint Center for Housing Studies of Harvard University’s most recent Leading Indicator of Remodeling Activity (LIRA) reading.
Spending in the home remodeling market is projected to grow around 14.4% on an annual basis in the first half of the year, before moderating to just under 10% by the third quarter, says JCHS.
“The ongoing growth that we’ve seen in home prices, housing starts, and existing home sales is also being reflected in home improvement activity,” said Eric S. Belsky, managing director of the Joint Center, in a statement. “As owners gain more confidence in the housing market, they are likely to undertake home improvements that they have deferred.”
That activity is expected to ebb somewhat around the middle of 2014, said Kermit Baker, director of the Remodeling Futures Program at JCHS.
“By that time, we’ll be approaching the pre-recessionary levels of spending, and with borrowing costs starting to creep back up, growth rates are likely to slow some,” he said.
Written by Alyssa Gerace
