Cambridge, MA, February 25, 2022 – Spending on improving the owner-occupied housing stock is expected to grow at a faster rate in most of the country’s largest metropolitan areas this year, according to projections released by the Remodeling Futures Program at the Joint Center for Housing Studies at Harvard University.
Projections for 2022 show robust average annual growth in home improvement spending of 13.8% in the 48 major metro areas tracked, with homeowner spending expected to grow between 7.6% and 23.0%. Of these metros, 20 are expected to experience above-average growth of 14% or more, with six metros exceeding the national renovation spending projection of 17% growth this year. All but one of the metros tracked show higher forecasted growth for 2022 compared to 2021 estimates.
“Record home price appreciation, strong home sales and strong incomes are all contributing to stronger renovation activity in our nation’s major metros, especially in the south and west,” says Sophia Wedeen , research assistant in the Remodeling Futures Program at the Centre. The largest gains in home improvement spending this year are expected to occur in Tucson, Arizona (23.0%); Riverside, Calif. (21.9%); Phoenix, Arizona (20.3%); Austin, TX (19.2%); San Antonio, TX (19.1%); and Las Vegas, Nevada (17.5%).
“While home renovation is expected to broadly accelerate in major metros, continued shortages and rising costs for labor and building materials could dampen activity in the coming year” , says Carlos Martín, project director of the Remodeling Futures Program. “There will be shifts in local supply chains and the remodeling workforce as regional economies recede from the pandemic and homeowner needs and activities change.”