Dive Brief:

• The typical U.S. home is 40 years old—and in need of some renovations, according to a National Association of Realtors economist.

• Scholastica Cororaton said an increasing number of homeowners will need to make renovations to their homes before selling them. For buyers who purchase homes without those renovations, they will likely remodel after moving in, she said.

• Despite the need to renovate an older, existing home, Cororaton said the median sales price of existing homes is $88,600 less than the price of new homes. New-home construction, she said, has risen because of the low levels of inventory, the increasing cost of construction, and the scarcity of lots for sale.

Dive Insight:

The outlook for higher demand for remodeling services could be good news for remodelers, given a gloomy forecast from Harvard’s Joint Center for Housing Studies earlier this year. The Center predicted that growth in the remodeling industry will dip to 6.2% in the first quarter of this year, after a 7% growth spurt in the fourth quarter of 2014. The group said it expects slight declines in the second and third quarters as well.