The revamping spending is a good indicator of potential new projects for integrators. As we head into 2021, home project spending is expected to increase in almost every major US metropolitan area. However, which areas are targeted for strong growth and which are not?
The Remodeling Futures program of Harvard University’s Joint Center for Housing Studies predicts that 42 cities out of 46 surveyed are likely to have increased renovation spending between 1% and 13%, while four will decrease by an average of 1% by 1.5%. In general, the study predicts that larger cities will perform better than smaller cities, with large metropolitan areas likely to increase spending by an average of 5% and smaller cities by only 2% on average. Robust growth of over 6% is forecast for 14 metros this year, while a further 17 metros are planned for moderate growth of between 3% and 6%.
In which cities are the highest renovation expenditures made? Oklahoma City, Tucson, Charlotte, Phoenix, and San Antonio will see the largest increases in spending, according to the study.
On the other hand, New York City, Denver, Boston, and San Jose are expected to see a decline in remodeling spending. This list makes sense because the pandemic will allow more workers to work from home instead of having to live in more expensive locations near work.
You can click on this interactive map to see how your region is projected to perform in 2021.
“Broad strength in property appreciation, existing home sales and residential construction suggests major renovation activities will be taking place in many metros this year,” said Abbe Will, associate project director of the centre’s Remodeling Futures program . “The largest spending gains on remodeling are expected to be in relatively cheaper subways in the Sunbelt. In Oklahoma City, Tucson, Charlotte, Phoenix and San Antonio, growth of over 9% is expected.”
“While home remodeling is an overall ray of hope in the economy, home improvement spending is expected to decrease slightly in some high-priced metropolitan areas such as New York, Denver, Boston and San Jose,” said Sophia Wedeen, research associate at the center . “While other more expensive metros – Washington, DC, Miami, San Francisco, Los Angeles, and Seattle – expect only modest spending growth of between 1% and 3% this year.”
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