Home owners are expected to increase their home improvement spending expenses in the next year and recent increases in home equity are partially behind that expected flow. Also, an increase in recent home sales activity is a good sign for the home improvement market, since recent home buyers usually spend about a third more on home improvements than non-movers, even when controlling for age or income differences, according to Harvard University’s Joint Center for Housing Studies’ Leading Indicator of Remodeling Activity.
The LIRA projects annual spending growth from home improvements is expected to increase 4 percent by the first quarter of 2016. The predicted flow of remodeling in the coming years is driven by a rising number of older adults who will want to outfit their homes with more age-in-place home features as well as projects stimulated by an aging housing stock.
