Home renovations are on the rise in America, according to projections by Harvard University’s Joint Center for Housing Studies. With potential to boost the economy, it was estimated that spending on remodeling and repairs will escalate to 8.6% this year, valued at an estimated $310 billion. This gain would compete with the 2006 rise of (inflation adjusted) $327 billion.
Additional spending is likely to add vast economic growth, adding jobs for construction workers and building supply firms.
The driving influence of the increased spending is rising home sales: home renovators include both people preparing to put homes on the market and also new owners customizing their homes.
The Chicago, New York, Phoenix and San Jose, California metro areas all reported double-digit growth in permits for renovations, while Las Vegas experienced a dip, according to the BuildZoom index.
Despite the increased activity, remodeling remains below the 2005 peak measured by the BuildZoom index.
“We’re not yet at that level of mania where we were during the housing boom,” said Issi Romem, the company’s chief economist.