ReNews -- Remodelors Council News - 04/19/2006 (Plain Text Version)

Vince Butler CAPS, CGR, GMB
Remodelors^TM Council Chair
Clifton, Virginia

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In this issue:
Record Remodeling Spending Projected for 2006
World-Wide Marketing for your Remodeling Company
EPA Grants Extention on Lead Paint Comments
Spring Board Schedule
Tools to Promote May is National Home Remodeling Month
Apply for the New and Improved Remodelor of the Month Award
Remodelors Council in the News
Calling all Leaders and Award Winners
Platinum Sponsors

Record Remodeling Spending Projected for 2006

Passing $200 billion for the first time, Americans spent an estimated $210 billion on residential remodeling in 2005, based on NAHB's analysis of recently released third-quarter remodeling spending from the U.S. Census Bureau. In addition, NAHB Remodelors™ Council forecasts the largest increase in spending in 2006 in more than ten years to a record $238 billion, a 13.2% jump.

“The devastating 2005 hurricanes, combined with a rebound in the rental market, are expected to spur a historically high increase in spending this year as repair work proceeds in the Gulf states and apartment owners renovate properties to maximize rental income,” said Vince Butler, CGR, CAPS, GMB, chair of NAHB’s Remodelors Council and a home remodeler from Clifton, Va. “The massive owner equity and low refinance rates that fueled recent growth will continue to drive strong expansion.”

The record industry growth forecast for 2006 is more than double the pace of growth in 2005, when remodeling spending grew by 5.8%, in line with average annual growth of 5.3% from 1994 to 2004. The previous growth record was posted in 2004, when spending jumped 12.2% due to a strong increase in the real estate market.

NAHB’s Economics Department recently analyzed the local economic impact of remodeling. For every $100,000 spent on additions and alterations, the local community receives $54,200 in income, $4,900 in taxes and other government revenue, and 1.01 full-time local jobs.

“The $200 billion remodeling industry is almost exclusively small businesses that operate in local communities,” said Butler. “And we can now confirm that money spent on remodeling stays local.”

Regionally, the South accounts for 31% of all remodeling expenditures, with an average of $1,513 spent per household in 2004, the last full year of Census data. The highest per-household spending occurs in the Northeast at $2,185, with a 23% share of all spending. The West spends $2,104 per household and accounts for 26% of all expenditures. The Midwest represents 20% of the remodeling market at $1,530 per household. The residential remodeling market accounts for approximately 40% of all home construction.