Dive Brief:
- According to the National Association of Home Builders Remodelers, the number of large home renovations and additions are at post-recession highs.
- In a survey of remodelers, 2016’s projects saw an increase in whole house remodels (10%), room additions (12%), finished basements (8%) and bathroom additions (7%) from 2013.
- The NAHB reported that bathroom and kitchen renovations are still the most common projects, with bathrooms at the top of the list.
Dive Insight:
The NAHB reported its survey results to coincide with National Home Remodeling Month, which began May 1. Last month, the NAHB reported a four-point drop in its Q1 2016 Remodeling Market Index (RMI) reading to 54, lower than the previous quarter but still representing a net positive in remodeling activity. Association officials said that despite the quarter-over-quarter dip, they still expected to see growth in the remodeling industry in 2016. The NAHB also reported a decline in home maintenance and repair projects but said there was an uptick in major additions and renovations.
Online remodeling resource Houzz had a positive take on the industry's strength and reported that its Q1 2016 Renovation Barometer revealed an increase in home remodeling industry confidence on a quarter-to-quarter basis. However, the home design platform also said there had been a slight downturn from its 2015 Q1 readings. Houzz found that renovation contractors and remodelers — much like the rest of the industry — are encountering difficulties in staying staffed with the most in-demand trades
The aging baby boomer population might also be playing a hand in the rise in large-scale renovations. Mike Shina of 55-plus developer Windsong Properties told Construction Dive in February that 90% of boomers want to remain in their homes as they get older. That trend has created a renovation market, according to Harvard's Joint Center for Housing Studies, of at least $13 billion for no-step entries and ramps alone.
