Home Remodeling Heads for Another Record Year
Based on NAHB analysis of recently released third-quarter data from the U.S. Census Bureau, Americans spent an estimated $215 million on residential remodeling in 2005, a record.
As the industry enters its peak season, NAHB economists are projecting that the volume of residential remodeling will surge 13.2% this year, the largest in a decade, to a new record of $238 billion.
“We have seen extraordinary growth in the remodeling industry over the past year, and we expect to surpass that in 2006,” said Vince Butler, chair of the NAHB Remodelors™ Council and president of Butler Brothers Corporation in Clifton, Va.
Butler, along with NAHB Chief Economist David Seiders, participated in a recent Remodelors™ Council teleconference, held in conjunction with celebration this May of National Home Remodeling Month. “National Remodeling Month marks the start of the remodeling season,” Butler said, “and we see this as an opportunity for our council to remind home owners of the many resources we offer those looking to hire a remodeler.”
Butler noted that home remodeling offers numerous benefits to home owners who want to change their living environment without uprooting their family and moving. Home improvements can add more space for a growing family or older family member, improve energy efficiency and increase the resale value of the home.
“The most popular remodeling projects continue to be kitchens and baths, which usually get the most return on the investment,” Butler said during the teleconference. “Home owners want to concentrate on the areas where they spend the most time.”
Retirees, especially the baby boom generation, increasingly prefer to be able to “age in place” or continue living in their homes safely, independently and comfortably, regardless of age or ability level. To help the remodeling industry adapt to meet those specific needs, the Remodelors™ Council created the Certified Aging in Place Specialist (CAPS) designation, which is the only program of its kind.
“The majority of our customers are baby boomers, although we are also seeing strong growth within the Gen-X market as well,” Butler said. “People want to let their house adapt with their needs as they change over time.”
The most critical decision home owners will make when embarking on a remodeling project is choosing the right professional for the job, he said. Choosing a professional remodeler can save both time and money by ensuring that the job is done right the first time and results in what the home owner envisioned. Professional remodelers understand that keeping consumers comfortable during the work and completing the project successfully depend on effective communication and follow-through, and they will guarantee the quality of their workmanship with a warranty.
“During this busy time, home owners need to be particularly careful about unscrupulous contractors,” noted Butler. NAHB offers guidelines on how to select a professional remodeler.
Consumers can find more information at www.nahb.org/remodel.
For more information, e-mail Jim Lapides at NAHB, or call him at 800-368-5242 x8451.
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