Both the LIRA and the RRI forecast steady growth beginning in Q1 2013
The Leading Indicator of Remodeling Activity, released by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University, predicts that by Q1 2013, U.S. remodeling activity will increase by 12.2% to $128.9 billion, more than doubling the predicted Q4 2012 growth of 5.9% at $120.7 billion.
The Residential Remodeling Index, released by Hanley Wood, meanwhile, is predicting the number of remodeling and replacement projects to reach 10.5 million in 2013, up from an estimated 10.1 million in 2012.
“Improving housing conditions are clearly buoying consumers to feel confident about making improvements in their homes that they may have postponed for several years,” says Jonathan Smoke, executive director of research for Hanley Wood. “Combine that with aging homes and aging boomers, and you get a recipe for strong growth in remodeling and replacement well into the future.”
—Mark A. Newman, senior editor, REMODELING.