Some helpful insight into home remodeling and the economy…thanks to St. Charles County Realtor Association! Check it out below…
“DAILY REAL ESTATE NEWS | TUESDAY, AUGUST 11, 2015
The remodeling of existing homes has bounced back from the housing bust and has now surpassed its pre-crisis level, according to the Urban Economics Lab Index, a newly launched index produced by BuildZoom and the MIT Center for Real Estate.
Which remodeling projects have the biggest paybacks? Check out Remodeling Magazine’s Cost vs. Value Report
The residential remodeling business has grown to an estimated $300 billion a year – about the same size to the $340 billion value of residential construction in 2014, according to the index.
Yet, “despite its size, and even though it is a good indicator of consumer confidence, residential remodeling is generally overlooked,” says Issi Romem, chief economist of BuildZoom, a resource for remodeling and construction services. “The existing focus on new construction imposes a view of the economy that overemphasizes conditions in high-growth metro areas, and in particular on their fringe, where new home construction is concentrated. Remodeling provides a more evenly-distributed view of the economy, that is more likely to represent conditions in the nation as a whole.”
New-home construction remains nearly 61 percent below its 2005 pre-crisis level, according to the index. On the other hand, remodeling of existing homes has fully recovered and has climbed 3.4 percent above its 2005 level.