According to Reports from the NAHB, Residential Construction, Home Improvement & Remodeling Spending is Increasing to Highest Levels seen Since 2004
Residential Construction, Home Improvement Spending & Remodeling Increasing
Giving hope to contractors and homeowners alike, an article about increased residential construction provides a positive look at the residential housing market. The article is on the National Association of Home Builders’ “Eye on Housing” blog that provides a lot of information on not just residential construction but the housing market as a whole. The article above provides statistics about this rise in residential construction spending, and the article below discusses a rise in the Remodeling Market Index.
Not only is home improvement activity at its highest point since 2004, but private residential construction spending is higher than it has been since August in 2008. In fact, since the lowest points of the housing market, residential construction spending is up by almost 50%: single-family housing is up almost 90%, multifamily is up almost 150%, and home improvement spending has increased over 30%. Here’s an excerpt from the article:
“Total private residential construction spending increased to a seasonally adjusted annual rate of $340.2 billion in August 2013 according to Census estimates. The August data for construction put in place data was released today after a delay of three weeks due to the government shutdown. The current reading is a 1.2% increase from the prior month and 18.7% higher than a year ago. After a tepid July, the pace of growth in construction spending improved in August.” – NAHB Article 10/22/2013
Subscribe to the NAHB‘s “Eye on Housing Blog” for frequent Residential Construction and Housing Market Statistics and News
For more information on the housing market, residential construction and home building, visit the Eye on Housing blog. Expert economists like Robert Dietz and many others like him provide in-depth information into residential construction and the housing market. At CraftPro, we like to keep our finger on the pulse of the residential construction market and we do so by following Mr. Dietz and the National Association of Home Builders. If you’re interested, we suggest you do the same.
When the housing market recovers, when residential construction spending increases, when statistics show that home improvement spending is increasing it gives contractors cause to be optimistic about the future and it gives homeowners motivation to spend money on their own residential construction: home improvements, remodels, renovations, etc.
Check out the embedded tweets below from the NAHB and Robert Dietz regarding the article on residential construction spending.
Construction Spending: Continued Improvement in August Data http://t.co/N4bySMCmtE
— NAHB Media Relations (@NAHBMedia) October 22, 2013
Aug res construction spending up 1.2% from July, 18.7% from Aug 2012. From Aug '12, single-family up 28.2%, mulifam 37.5%, remodeling 5.5%.
— Robert Dietz (@dietz_econ) October 22, 2013
Residential Construction: Remodeling Stats Increase Also
An excerpt from the article reads, “an RMI above 50 indicates that more remodelers report market activity is higher (compared to the prior quarter) than report it is lower. The overall RMI averages ratings of current remodeling activity with indicators of future remodeling activity. The RMI’s current market conditions index rose from 54 in the previous quarter to 58, the highest reading since the creation of the RMI in 2001, driven partly by rising existing home sales.” So what does an increase in remodeling activity mean to homeowners thinking about doing some residential construction of their own? The data shows that more existing homes are being sold and more homeowners are confident enough in the market to spend on home improvements. What does that mean to home improvement contractors? Essentially the same thing. At CraftPro we have seen a rise in the number of home improvements we have completed that were for homeowners who had just purchased or were just about to sell an existing home. We would report more remodeling activity this quarter than last quarter also, so the Remodeling Market Index seems to be right on point.
The Takeaway: It’s Time to Start that Home Improvement Project.
The market is clearly rebounding: residential construction, existing home sales, and remodeling activity are all increasing. Depending on the home improvement you decide on you could very well be adding serious value to your house and that home project can most definitely turn out to be a good investment with a high ROI when it comes time to sell.
Check out the Google Plus profile of me, Richard J. D’Angelo, President of CraftPro Home Improvements and co-author of this article. You can also visit CraftPro on Google+ and join our community of home improvement, maintenance and renovation professionals.