AgentIndustry News

Harvard JCHS report predicts uptick in home improvements this year

Home renovations are expected to hit 10-year high but may be hindered by labor shortages and financing concerns
  • A new report shows homeowners are expected to increase their home renovation projects this year.
  • The question remains whether labor availability and consumer financing will be equipped to meet this increased demand.
  • Agents would be keen to keep an eye on how this trend may affect the listings in their area.

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Thanks to the continued housing market recovery, homeowners are expected to increase their home renovation projects this year, according to the latest Leading Indicator of Remodeling Activity (LIRA) report issued this week by Harvard University’s Joint Center for Housing Studies (JCHS). The LIRA report is released once per quarter by the JCHS Remodeling Futures Program, which monitors the growth and changing characteristics of home renovation and repairs. This information sheds light on the relationship between the home improvement and residential construction industries. According to the report, home improvement spending increased 5.3 percent to $141.7 million year-over-year in the fourth quarter of 2015. Last year, year-over-year spending increased by about 4 to 7 percent each quarter. “In most markets across the country, rising house prices are bringing more homes to the market and increasing sales, which is a large driver of home improvement activity,” said ...