Trending
Area builders disagree with a study that predicts a decline in home remodeling.
After more than a decade of continuous growth, annual spending on improvements and repairs to owner-occupied homes is expected to decline by early next year, according to the Leading Indicator of Remodeling Activity released recently by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University.
The LIRA projects that year-over-year expenditures for homeowner improvements and maintenance will post a modest decline of 2.8% through the first quarter of 2024.
Jim Brown, owner of J.R. Brown Construction Inc., Hollidaysburg, said nationwide forecasts are broad-based and really don’t take into account smaller markets like Blair and its surrounding counties.
"Blair County is and for the foreseeable future will remain a very strong remodeling market. We have older housing stock, which lends itself to being remodeled every 20 or so years. We have older generations that, when they continue to stay in their homes, remodel to allow them to stay in their homes even longer," Brown said. "I don’t see any great changes in remodeling activity in our local market."
Donald Delozier, owner of Donald C. Delozier Inc. Contracting, Hollidaysburg, said fewer people are building new homes, hence the need for remodeling.
"It is more expensive now to build new," he said, adding that people seem to be staying where they are at.
"It is easier to remodel right now," Delozier said. "We are working on two big remodeling projects in the Hollidaysburg area."
Owner Mark Metz of Metz Builders Inc., Hollidaysburg, said he is busy working on primarily new home builds, but a slowdown is inevitable.
Metz is working with Garvey Manor building new retirement homes and said he is booked months in advance.
"So far, we are still receiving many more requests from people looking to build or remodel than we could ever do," Metz said.
Higher interest rates are having an impact on building and remodeling, though, according to the Joint Center.
"Higher interest rates and sharp downturns in homebuilding and existing home sales are driving our projections for sluggish remodeling activity next year," said Carlos Martin, project director of the Remodeling Futures Program at the Center. "With ongoing uncertainty in financial markets and the threat of a recession, homeowners are increasingly likely to pare back or delay projects beyond necessary replacements and repairs."
Interest rates always have some impact on the remodeling business, but not as much as one may believe, Brown said.
"Higher rates will potentially cut back on the scope of a project. Take for instance a kitchen remodel. A customer may have initially planned on constructing an addition to their home to allow for more kitchen space. Higher rates may force them to only remodel the existing kitchen space. But I don’t feel higher rates will cause a substantial decline in business," Brown said.
"Our customers are sometimes shell shocked at current prices, but for the most part are still willing to move forward," Metz said.
Mirror Staff Writer Walt Frank is at 814-946-7467.