According to Fitch Ratings, home improvement spending is on inclined track this year. Fitch projects that home improvement spending will increase by 4.5% in 2016 as the U.S. economy continues to gain strength and home values improve following the burst of the housing bubble. However, not everything is sunshine and roses, despite the stable forecast. "Higher interest rates could slow refinancing and cash-out activity, and tight construction labor markets could lead to higher costs and construction delays. Negative equity overhang also still lingers over the housing market,” notes Business Wire.
Furthermore, construction employment has only recovered slightly, but is still roughly 17% below the peak levels that were seen in 2006. Fitch Director Robert Rulla notes: