ReNews -- Remodelors Council News - 07/13/2005 (Plain Text Version)Don Novak CGR, CAPS, CKB, GMB View Graphical Version | Subscribe to NAHB Publications | Email our Editor... In this issue: State of Remodeling (P.S. It's Good)Home remodeling is strong, and it looks like it’s going to stay that way. Three recent reports from the Census, the Joint Center for Housing Studies of Harvard University (JCHS), and NAHB Remodelors Council show strong growth in remodeling spending. Both the Census and JCHS measure dollar number spending on remodeling, but through different methodology (JCHS uses Department of Commerce, Census has their own data). Census recently released remodeling expenditures for 2004 estimated at $198.6 billion. This is a bullish increase of more than 12 % from 2003 ($176.9 billion). The Census reviews and releases spending on remodeling quarterly. The JCHS issues a comprehensive remodeling report every two years. The 2005 report, which looks at data from 2003 in two year increments, shows nearly a 10 % gain from 2001. The Remodelors Council Remodeling Market Index (RMI) also showed continued growth in the first quarter of 2005 and into the second quarter. The RMI is a quarterly survey of remodelers of their current and projected business. Everywhere it’s more growth, continued gains, and added billions spent on remodeling. When you start adding 10 digit dollar numbers together here and there, you’re talking about serious money. And according to the JCHS, there’s no sign of any slowdown. The continued growth can be nailed down to two main factors: aging people and aging homes. As the population continues to collectively get older, more people can afford home ownership (including second homes). According to JCHS, homeownership rates are over 68 %, up from 64% in 1993. And it goes without saying, home owners spend more on remodeling than renters. In addition, the current low mortgage rates cannot be ignored at least as a short-term boost. The other major factor is the average age of the current housing stock. Currently at 32 years and rising, they are in constant need of maintenance and upgrades. And there are a lot of homes in need when you consider that more than half of the 120 million homes nationwide were built before the bicentennial. Fortunately, the JCHS found that significant increases in home prices has caused owners running to both protect their investment and leverage newly-found equity. In addition, much of the recent growth has been with major upgrades such as kitchen or bath. Home owners are more willing than ever to devote significant funds to their remodeling project. Clearly the demand is there, and the Remodelors Council will be there to help your business take advantage. For more information or to contact us directly, please visit www.NAHB.org | ©2005, National Association of Home Builders |