CHICAGO–(BUSINESS WIRE)–Link to Fitch Ratings’ Report: The Tale of the “Measuring” Tape (U.S.
Home Improvement Industry)
Rising optimism among U.S. homeowners may point to moderately higher
spending on home renovation projects through 2014, according to Fitch
Ratings in a new report.
Fitch is projecting home improvement spending will increase 4% in 2013
and grow 5% next year as the housing market continues its modest
‘After six years of declining overall returns for remodeling projects,
the home improvement industry finally turned the corner and saw an
increase in costs recouped from home improvement projects,’ said
Director Robert Rulla. ‘Increasing housing turnover will also provide
added impetus for remodeling spending as homeowners prepare their homes
for sale and new owners undertake projects to personalize their homes.’
That said, challenges remain for the sector that could derail a
sustained rebound in remodeling spending. Unemployment is still high,
consumer credit standards continue to be tight and consumer confidence
is still weak. Additionally, rising mortgage rates could slow down
cash-out refinancing activity, which may perhaps limit homeowners’
ability to finance large projects. ‘Spending for big-ticket remodeling
projects will continue to lag the overall remodeling improvement,’ said
Rulla. ‘That said, homeowners are slowly warming to the idea of
undertaking larger discretionary projects and purchases.’
Fitch’s latest ‘Tale of the “Measuring” Tape’ is available at ‘www.fitchratings.com‘
or by clicking on the above link.
Additional information is available at ‘www.fitchratings.com‘.
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Rating: 5 out of 5