Home Renovation Approaching Record Levels
It appears that construction companies may be seeing a lot of remodeling and repair work over the near future. Recent projections indicate that record amounts of spending by U.S. homeowners and property owners on renovation work are on the horizon.
According to these projections, annual repair and remodeling spending will cross the $300 billion mark this year. This has never happened before. The highest annual spending total the U.S. saw previously was around $285 billion, which happened in 2007.
Now, when adjusted for inflation, the 2016 projections are still behind the 2007 peak. However, the projections predict that 2017 will have an even greater level of spending which would set a new inflation-adjusted high.
Why the big boosts in remodeling and repair spending? Factors that experts are citing include:
- Older homes making up a lot of U.S. housing.
- A limited housing inventory.
- Unique aspects of the post-recession housing recovery.
- The fact that renovation and repair work can be done incrementally, rather than requiring one big up-front step like buying a new home would. This ability to do things little-by-little might be appealing to individuals who are still smarting from the effects of the recession or who are nervous about the possibility of future economic hiccups.
Now, as with the construction of new homes, litigation issues can sometimes come up for construction companies over repair and remodeling work. This could include litigation regarding construction contracts, failure by the homeowner to make payments or allegations of the remodeling or repair work having been deficient. One wonders if the big expected spike in renovation spending will lead to an increase in the amount of repair/remodeling-related construction litigation. Whether doing new construction or renovation work, when litigation comes up for a construction company, it may want a skilled construction law attorney’s assistance in navigating the matter.
Source: The Wall Street Journal, “Spending on Home Improvement Is Set to Pick Up as Building Pace Slows,” Chris Kirkham, Aug. 21, 2016