In the last seven years, improvement remodeling has increased significantly while the market has seen a substantial decline in maintenance remodeling.
Forecasters with the National Association of Home Builders (NAHB) predict total remodeling expenditures to grow at an average rate of five percent now through 2005. At that rate, the total remodeling market will be about $180 billion, overtaking new construction in approximately eight years.
Many of the largest remodeling jobs are designed to add the luxuries and styling of new homes to old ones. In statistics from the NAHB, individuals sited the need for more space as the major reason for remodeling. One of the most significant differences in new homes verses old homes is size. Most homes built in the 1950s had less than 1,500 square feet of finished space. Today, the median size of a new home is nearly 2,000 square feet complete with more bathrooms, garages, fireplaces and, more importantly, windows.
Quality improvements in the materials used to build new homes also has stimulated remodeling demands. Some components, such as windows, are of dramatically better quality now than those in many existing homes. Moreover, individuals are incorporating more specialty windows and transoms into their remodeling plans. Who's Remodeling?
Average expenditures for home improvements are greatest for younger to middle age households. Middle age households are more likely to seek larger projects such as great room additions or whole kitchen remodeling, especially as the family grows and workers enter their peak years.
Scott Fawcett is senior vice president of sales and marketing at Springs Window Fashions Division, Middleton, WI.
Sponsored by Springs Window Fashions Division
Top 10 Remodeling Markets
1. Los Angeles/Long Beach, CA
2. Washington, DC
3. Boston, MA
4. New York, NY
5. Chicago, IL
7. Minneapolis/St. Paul, MN
8. Nassau/Suffolk counties, NY
9. San Francisco, CA
10. Detroit, MI