Although it might not seem like it from the state of our politics, but for the first time since 2007, just before the collapse of the housing market, we have reached a new peak with a 13.5% increase in spending on home improvements and maintenance. Last year alone homeowners spent more than $361 Billion.
2016 was a great year for construction companies, and to meet the increasing demands and high standards set by this sudden influx of consumers, all benchmarks have been renewed and many companies such astopremodelers.com have set their sights on setting new industry standards by providing top of the line service at an affordable price, which is a good thing for us consumers.
It has been forecasted that spending in the residential remodeling sector is expected to grow at about 2% per year till at least 2025. This growth is due to a number of factors:
1.First of all come the older generation, and they are expected to dominate the residential remodeling industry by spending on changing their houses to better suit their changing needs of safety and comfortability. Expenditures by homeowners aged 55 and above are expected to reach about 56 percent by the year 2025.
2.Then comes the baby boom generation with their continuous increase in spending for the past 20 years and it is expected to keep increasing for the foreseeable future. To make their homes more accessible boomers will continue to spend on small and larger upgrades throughout the decade.
3.For the generation X this is the prime time to get back into the housing market and recover some of the equity that was lost in the housing crisis.
Because of the decrease in unemployment during the Obama administration and the general increase in salaries and in home values, many people have started to rent out their places. But before whenever that is done, some remodeling is bound to take place, along with repairs and some renovations.
Renovations are especially popular with most new homeowners because they always want to customize their homes according to their own tastes and needs after the purchase.
Such is also the case whenever a property is sold, a lot of repairs and remodeling tends to happen during that time period.
Millennials seems to really value customizing their homes and adding a personal touch, something to call their own and to stand out from the rest with.
Due to the increased demand of rental housing, there is a new source of capital for many to invest in and this requires more remodeling and repairs.
The new generation is focused specially on energy efficient and environmentally sustainable homes, that are also healthy, and along with the new trend of home automation which includes everything from home entertainment systems to lightning and security of your home, there is a huge growth spurt expected in many younger households, and the market is expected to grow at a steady rate.
After the recession, many homeowners have become very cautious with how they spend money on house repairs and renovations, but since 2015 there has been a steady increase in some more important home improvements such as fixing plumbing, electrical, and HVAC. After this comes some more important upkeep on exteriors like roofing, windows and doors, and interiors like flooring, carpeting and insulation and then comes the improvements to the yards such as fence replacement and fixing.
Minorities have also been spending more and amore, and there has been an of 7% from 195 till 2015, but it is expected to reach about 40% by the end of 2025.
But due to the rising home prices and mortgage interest rates, a slight decrease in spending is expected overall, which will make it harder to meet demands for new homes. So fewer millennials are expected to becomes homeowners in the next few years.
But when they do make a purchase, the homes tend to be cheaper and require a lot of repairs and remodeling, as it usually is around the time of purchase of a new property.
The future of the remodeling and housing development industry is very bright, but it will take its time. Slowly but surely the surge in home renovations and the remodeling expenditure will push the market forward and open new doors (pun intended) for all newer and older homeowners. Due to the competitive prices and higher industry standards, everyday services are getting better and more efficient and cost effective. So now is the best time for all new homeowners to look into remodeling and renovating their homes.
The start of this year saw a huge increase on housing projects and due to the increased workloads, there was a record rise in employment in years, but the cost inflation also rose to its highest point yet in the last ten years.
The future activity will propel the economy forward and will see another sharp decline in the unemployment rates.