More than one-third of remodelers surveyed recently estimated that revenues would jump by at least 10% this year, but the group was less optimistic about their prospects for 2016, the Joint Center for Housing Studies (JCHS) of Harvard University reported today.
Kermit Baker, director of JCHS' Remodeling Futures Program, didn't offer a reason for why 43% of the respondents predicted revenues next year will be about the same as this one. But anecdotal reports given at JCHS' semiannual gathering as well as from other sources point to a shortage of labor as one constraining factor and remodelers' capacity limits as another.
The Farnsworth Group of Indianapolis collected the results from 220 remodeling companies nationwide as part of a separate research project for JCHS. Here is what remodelers forecast for revenue changes this year:
And here are the projected changes in company revenue in 2016 for the 231 firms taking part in this section of the Farnsworth Group survey:
Earlier this year, JCHS forecast home improvement and repair spending this year would reach an all-time high of $326.1 billion. Recent reports make the center even more confident that a record will be set, he said today. And while he wouldn't make an official prediction for 2016 and 2017, he did note that if one applies the trend growth rate for the past 20 years, the home improvement and repair market could jump to $345 billion next year and $355 billion in 2017.