American homeowners are expected to do more remodeling this year. Factors like the aging housing stock and record home equity are expected to bolster the remodeling and repair industry this year, the National Association of Home Builders (NAHB) said.
That view is also supported by NAHB’s quarterly surveys of its remodeler members. The trade group’s index that measures the confidence of remodelers has remained solidly in positive territory since June 2020.
NAHB is forecasting residential remodeling activity will post a 5% gain this year, and 3% growth in 2026.
“One of the key factors for growth in the remodeling market is the aging housing stock, which continues to drive renovation projects,” NAHB economist Eric Lynch said.
“Homeowners are increasingly choosing to tap into their home equity and invest in improvements rather than relocate, creating long-term growth prospects for the industry,” he continued.
There are, however, some headwinds, such as persistent inflation and labor shortages in certain construction trades.
The top five fields that remodelers reported labor shortages included carpenters-finished, carpenters-rough, framing crews, bricklayers/masons and concrete workers.
The most difficult products for contractors to obtain were appliances, windows and doors, HVAC equipment, plumbing fixtures and fittings and cabinets.
