Posted by: glassblockblogger | June 2, 2011

Home Remodeling Economic Trends and Projections

Remodeling Trends

New York, New Jersey, Philadelphia, Boston

Companies involved in the home remodeling industry, such as we are at Eastern Glass Block, are always interested in industry projections and trends.

Economic projections show spending on home remodeling to be trending up, or at least keeping pace with GDP growth. Spending on remodeling is especially prevalent in major cities such as New York, Philadelphia, Boston, and other cities in certain coastal States.

According to a January, 2011 report called “The New Decade of Growth for Remodeling” by the Joint Center for Housing Studies of Harvard University, “Over the coming years, real spending on homeowner improvements is expected to grow at a 3.5 percent average annual pace, ensuring that the industry captures a large share of the residential investment market.” Top remodeling markets are along the coasts, such as New York, Boston and Philadelphia, to name a few major cities that have shown high spending on remodeling according to the report.

The report goes on to say that between 1995 and 2009, remodeling spending grew at a compound annual rate of 4.75 percent while the economy grew at a similar compound annual rate of 4.71 percent. Even longer term Commerce Department estimates of improvements to residential structures have closely tracked the growth in the broader economy.

The NAHB, National Association of Home Builders, provides a quarterly Remodeling Market Index for insight to current market conditions, as well as future expectations for the remodeling market.

The April 2011 Index showed a tick up to 46.5. An RMI below 50 indicates that more remodelers say market activity is lower compared to the prior quarter than those that report it is higher. The RMI has been running below 50 since the final quarter of 2005.

However, there has been an incline since the 3rd quarter of 2010 when the index was at 40.8.

Remodeling designs that meet the current desires of homeowners are critical. Those desires today include not just aesthetics, but also security and energy efficiency. Glass Block is an excellent choice when planning a practical and yet creative remodel design. Installation is easy and the decorative aspects of the material are nearly endless.

Do not hesitate to give us a call. We have over 20 years of experience designing residential and commercial projects nationwide. We love to share our knowledge.


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