Houzz Stat: Stable demand for design-build firms
General contractors and remodelers posted high scores. General contractors and remodelers posted a reading of 71, and design-build firms 67, in the third quarter of this year. Both scores dipped a bit from the second quarter, but again, that is to be expected with the shift in seasons.
The scores for general contractors and remodelers and design-build firms are pretty close to those of a year ago, indicating fairly stable demand on a year-over-year basis.
On a year-over-year basis, the score for the number of design-build firms’ new projects or orders dropped by three points. Despite that dip, scores for both design-build firms and general contractors and remodelers remain strong, in the mid- to high 60s and low 70s for both groups across all three components of the barometer.
See the complete report here.
Readers Respond: Starts Looking Up
As total housing starts crossed the 1.20-million mark in 2017, the industry looks ahead to what is hoped to be another in a line of steady growth in this widely watched metric. The latest HBSDealer poll reveals 64% of respondents expect at least 1.3 million total starts in 2018.
About 100 readers took the poll, which asked: “What do you expect for 2018?”
The reader responses were as follows:
• “1.1 million or lower,” 12%
• “1.2 million,” 23%
• “1.3 million,” 28%
• “1.4 million,” 14%
• “1.5 million,” 13%
• “1.6 million,” 1%
• “1.7 million or higher,” 8%
The poll remains open here.
A little background, since 2009, the total starts number has steadily improved as follows:
2017: 1,202,100 (preliminary figure)
LIRA forecasts robust remodeling spending in 2018
Residential remodeling and repairs are expected to have another sturdy year in 2018, according to the latest Leading Indicator of Remodeling Activity released today by the Joint Center for Housing Studies of Harvard University.
LIRA projects that homeowner spending on improvements and repairs will approach $340 billion in 2018, a 7.5% increase from 2017 estimated spending
"Steady gains in the broader economy, and in home sales and prices, are supporting growing demand for home improvements," said Chris Herbert, managing director of the Joint Center for Housing Studies. "We expect the remodeling market will also get a boost this year from ongoing restoration efforts in many areas of the country impacted by last year's record-setting natural disasters."
"Despite continuing challenges of low for-sale housing inventories and contractor labor availability, 2018 could post the strongest gains for home remodeling in more than a decade," said Abbe Will, research associate in the Remodeling Futures Program at the Joint Center.
Will noted that annual growth rates have not exceeded 6.8% since early 2007, before the Great Recession hit.