The National Association of Home Builders (NAHB) reports that residential remodeling spending for 2005 reached $210 billion, a record in the housing market. In addition, the association predicts that 2006 will bring the largest increase in spending in 10 years, with a 13.2 percent jump to $238 billion.
Factors contributing to the expected jump include massive rebuilding along the hurricane-devastated Gulf Coast, as well as continued low refinance rates spurring increased remodeling and renovation.
The forecasted record growth would be more than double the growth for 2005, where remodeling spending grew by 5.8 percent, in line with average annual growth of 5.3 percent from 1994 to 2004, the association says.
The previous record for growth was set in 2004, when spending skyrocketed 12.2 percent.