Residential remodeling is receiving a boon from slow housing recovery as homeowners opt to renovate rather than sell. And of the markets seeing growth in this sector, Los Angeles County, Calif., leads the way, with remodeling expenditures of $8.4 billion per year, according to data compiled by the NAHB. Nationwide, total remodeling expenditures were $66 million. The top counties by region were Los Angeles County in the West; Cook County, Ill., for the Midwest with $4 billion; Nassau County, N.Y., for the Northeast with $1.9 billion; and in the South, Miami-Dade County, Fla., with $1.7 billion .
On average, households nationwide spent $1,907 on remodeling projects, with Nantucket County, Mass., spending more than three times that amount at $8,520. Marion County, Calif., followed at $7,782, and Falls Church City, Va., at $6,099. Cook County, Ill., doubled-up in the top rankings, averaging $3,466 per project.
Also on NAHB’s watch list, 99 housing markets among 33 states are forecasted for improvement in March according to the NAHB/First American Improving Markets Index (IMI) —a nearly seven-fold increase from the inaugural 12 markets in September 2011. The index is based on relative improvements in housing permits, employment, and home prices for a minimum of six consecutive months. The March IMI results show 31 additions and 30 drops from February’s 98-market listing. Newcomers include: Orlando, Fla.; Rochester, N.Y.; Columbus, Ohio; Austin, Texas; and San Antonio. Changes in employment data brought Anchorage, Alaska; Iowa City, Iowa; Washington, D.C.; and Jackson, Miss., back to the list. Despite the slow and inconsistent growth, NAHB chief economist David Crowe says it follows the association’s predictions and suggests continued improvement. “The bottom line is that roughly one-quarter of all U.S. metropolitan areas are showing signs that their housing markets have turned the corner, which is a very positive development,” he said.
