Strong growth seen in home remodeling

The Joint Center for Housing Studies at Harvard University sees continued strong growth in home-remodeling spending this year. AP FILE PHOTO

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CAMBRIDGE -- Strong growth is expected to continue this year in the home remodeling market, according to a report from the Joint Center for Housing Studies at Harvard University.

The Leading Indicator of Remodeling Activity, released Thursday, found that national spending on home remodeling is expected to be about $144.7 billion in the current quarter, about 4 percent higher than the comparable year-ago period.

The report estimates that spending will increase in the second quarter by an even greater amount, 14.7 percent, to $147.6 million, before moderating to 9.9 percent year-over-year growth in the third quarter.

"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."

His colleague Kermit Baker, director of the Remodeling Futures Program at the Joint Center, noted the slower growth later in the year.

"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.

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Strong growth seen in home remodeling