Instead of selling, homeowners are remodeling

The home-improvement industry has fared much better than the broader housing market, according to a report Thursday from the Joint Center for Housing Studies at Harvard University.

In fact, industry experts are predicting that 2015 could see record spending on home improvements.

After years of declining revenue, the industry is reinventing itself, said Kermit Baker, director of the joint center's Remodeling Futures Program. "[The industry] is finding new ways to address emerging growth markets and rebuild its workforce for an evolving customer base," he said.

The housing downturn contributed to strengthening the remodeling market, since many homeowners who would have moved to larger houses stayed put and improved instead.

Federal stimulus programs encouraged energy-efficient upgrades, and investors reinvested in rentals to attract tenants.

Spending on discretionary home improvement rose $6 billion between 2011 and 2013, the first increase since the downturn began in 2007, Baker said.

Big spending is mostly on kitchens and bathrooms in this area, said Jay Cipriani, of Cipriani Builders in Woodbury.

"They are doing this work to stay," he said of the homeowners, adding that "I have not had anyone in the last two years say that they wanted to fix up their house to sell it."

Dave Cerami, of Hometech Renovations in Fort Washington, said much of what he recommends to clients is based on how long they plan to live in the home, how old the house is, the neighborhood, "personal aesthetic and any upfront budgets they happen to provide."

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Instead of selling, homeowners are remodeling