Building Sector Revitalized by Home Improvement Projects | New ...

The construction sector has been languishing in the midst of a sluggish housing market. But for the first time in many years, homeowners are beginning to spend money on home improvements, which is energizing construction.

Homeowners are choosing to remain in their homes and spend money on renovations rather than moving.

For the first time since 2006, it has been forecasted that homeowner spending on remodeling (large or small) has been up. This uptick coincides with other positive signs in residential renovation.

Although most of the renovations that are taking place are small-scale such as lighting and kitchen cabinets, it?s a great sign that people are choosing to remodel rather than move. Beleaguered home prices and the difficulty for many homeowners to obtain bank loans, not many are choosing to undertake major projects.

The increase in home-improvement spending comes as the economy and consumer confidence are rising as well. It?s a bright spot for a construction industry that is ailing because of the distressed new home market.

Home improvements have been bolstered from many areas beginning with the fact that spending has been down for such a long time. Some homeowners were encouraged to upgrade to energy-saving roofs or heating systems because of a stimulus act including energy-tax credits. And, despite falling home prices, declines aren?t as pronounced as they once were.
Still some homeowners remain hesitant about putting money into properties that have sharply declined in value. The declines have also stopped another means of financing housing renovations ? cash-out refinancing, wherein homeowners replace a mortgage with a bigger loan and keep the extra cash.

It?s no wonder home improvements are critical to builders and the economy, what with the housing markets struggles. Single-family home construction spending has dropped so far that owners actually spend more on renovations than builders do on new-home construction.

See also:
Baby Boomers Still Hold Key to Renovation Spending
FNMA Home Path Incentive Program
6 Effective Ways to Remodel Economically

Source: http://www.newhomessection.com/california-real-estate/home-renovations-revitalize-building-sector/

juelz santana greg halman greg halman