JCHS says Sunbelt remodeling will heat up
Remodeling and home repair spending to owner-occupied housing is expected to increase in nearly all of the nation’s largest metro markets, according to the latest projections from the Remodeling Futures Program at the Joint Center (JCHS) for Housing Studies of Harvard University.
The JCHS says 2021 annual home improvement spending should grow from 1% to 13% in 42 major metro markets while declining modestly by 1.5% or less in just 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.
About 14 metro markets are projected to see robust growth above 6% this year, while an additional 17 areas 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,” said Abbe Will, associate project director in the Remodeling Futures Program at the Center.
Will notes that the largest remodeling spending gains are projected to occur in more affordable markets 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,” said Sophia Wedeen, a research assistant at the JCHS.
Higher-cost markets, including Washington, D.C., Miami, San Francisco, Los Angeles, and Seattle, are expected to have modest levels of spending growth between 1% and 3% in 2021.
The Joint Center for Housing Studies’ Metro Area Home Improvement Projections are released annually in the first quarter and provide a short-term outlook of home improvement spending to owner-occupied homes in approximately 50 of the largest US metropolitan areas.
An interactive map from the JCHS, featuring historical trends and projections by market, can be accessed here.
