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Wednesday, Aug. 10, 2005 | ||
Remodeling posts biggest gain in a decadeRemodeling expenditures saw record growth in 2004, up 12.3 percent from 2003, and the National Association of Home Builders sees continued growth ahead. Americans spent $198.6 billion on remodeling projects last year according to the U.S. Census Bureau, up from $176.9 in 2003 and the largest increase in more than a decade. "A combination of increased home sales, more owner equity and low refinance rates all contributed to the tremendous growth last year," said Remodelors Council Chairman Don Novak, CGR, CAPS, a remodeler from Cedar Rapids, Iowa. In addition, the National Association of Home Builders (NAHB) Remodelors Council forecasts continued growth throughout 2005 to $209 billion, but at a less torrid increase of 6.3 percent. Owner-occupied properties saw a major increase in remodeling spending, up to $143.4 billion in 2004 versus $119.9 billion in 2003. At the same time, spending on renter-occupied properties decreased slightly in 2004, down to $55.1 billion from $57 billion. "Because of rising home prices, homeowners are more willing than ever to invest in their homes," said NAHB Chief Economist Dave Seiders. "We see this as a continuing trend for several years to come." Rising home prices have encouraged remodeling in several ways, including: Remodeling has become easier to finance with the increased equity that a homeowner can tap into, either through refinancing or home equity loans. Homeowners may decide to remain and improve their homes when faced with sticker shock from home prices, as homes nationwide have appreciated by 15.1 percent over the last year . Rising prices make improvements look like better investments, as a greater percentage of the cost will be recouped in any sale. In markets with rapidly rising prices, it is not unreasonable for the homeowner to expect to eventually recoup the full cost or more of an improvement project. The aging housing stock also contributes significantly to remodeling projects. Currently at an average of 32 years and rising, a greater need for maintenance, repairs and the opportunity for more (and more expensive) improvements will continue. The NAHB Remodelors Council represents the 14,000 remodeling industry members of the National Association of Home Builders (NAHB). Founded in 1982, the Council provides information, education and designation programs to improve the business and construction expertise of its members and to enhance the professional image of the industry. "Remodelor" is the trademarked identifier of NAHB members active in the remodeling industry. The Council's membership incorporates 160 local councils in 43 states. The National Association of Home Builders is a Washington-based trade association representing more than 220,000 members involved in home building, remodeling, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing and other aspects of residential and light commercial construction. Known as "the voice of the housing industry," NAHB is affiliated with more than 800 state and local home builders associations around the country. NAHB's builder members will construct about 80 percent of the more than 1.93 million new housing units projected for 2005, making housing one of the largest engines of economic growth in the country. On the local level, the Home Builders Association of Midwest Georgia serves builders in Fayette, Coweta, Spalding, Meriwether, Heard, Pike, Upson, Lamar, Butts and Jasper counties. More information about the group can be obtained by calling Sandy Boda, executive officer, at the association office. The number is 770-716-7109.
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