Home remodeling continues to increase in frequency as more Baby Boomers are electing to age in place and even Gen Xers opt to improve their current homes rather than trading up to newer ones.
In fact, home remodeling has surged by about 30% in the past five years, according to the latest report from BuildFax, a provider of property condition and history insights for insurance and financial institutions.
“We are not seeing a large bounce back from the decline in June housing authorizations,” BuildFax Chief Operating Officer Jonathan Kanarek said. “However, we have to remember that all three categories, new housing, remodels, and maintenance, are at historically high levels.”
“Remodeling alone is up 30% in the last five years,” Kanarek said. “The slight dip in remodeling volume may be an early indicator of a leveling off of the very hot housing construction market we’ve seen in the last few years. We will be keeping a close eye in the coming months to look for the leveling off trend or a further softening.”
Single-family housing authorizations increased by just 0.62% from June to July, and by a seasonally adjusted annual rate of 4.77% since July 2017, the report showed.
Existing housing maintenance, however, increased at a much faster pace, as the chart below shows. The annual rate of housing maintenance volume increased by 5.23%, while housing maintenance spend increased at an annual rate of 8.04% in July.