Harvard study shows metro areas with expected remodeling growth – LBM Journal

CAMBRIDGE, Mass. Expenditures for remodeling improvements to the owner-occupied housing stock are expected to increase in nearly all of the nations largest metropolitan areas this year, according to projections by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. Following a pandemic-induced slowdown, projections for 2021 show annual home improvement spending growing from 113% in 42 major metropolitan areas, while declining modestly at 1.5% or less in four of the 46 metros tracked. Collectively, large metro areas are expected to see stronger remodeling gains in 2021 with an average growth of almost 5% compared to an estimated gain of 2% in 2020. Fully 14 metros are projected to see robust growth above 6% this year, while an additional 17 metros are set for moderate gains between 3 and 6%.

Broad strength in house price appreciation, existing home sales, and residential construction suggest that many metros will see greater renovation activity this year, says Abbe Will, associate project director in the Remodeling Futures Program at the Center. The largest remodeling spending gains are projected to occur in relatively more affordable metros in the Sunbelt, with over 9% growth expected in Oklahoma City, Tucson, Charlotte, Phoenix, and San Antonio.

Although home remodeling is a bright spot in the economy overall, owner improvement spending is projected to contract slightly in a few high-cost metropolitan areas including New York, Denver, Boston, and San Jose, says Sophia Wedeen, a research assistant at the Center. While other higher-cost metrosWashington, DC, Miami, San Francisco, Los Angeles, and Seattleare expected to have only modest levels of spending growth between 1 and 3% this year.

A report from October 2020 showed that residential remodeling had continue a steady expansion and was no longer in a downward projection due to the COVID-19 pandemic.

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Harvard study shows metro areas with expected remodeling growth - LBM Journal