More Americans expected to remodel their homes in 2016

WASHINGTON >> A rising number of Americans are preparing to renovate their homes this year, a potential boost for the economy, according to projections released Thursday by Harvard University’s Joint Center for Housing Studies.

The report estimates that spending on remodeling and repairs will climb 8.6 percent this year to $310 billion. The gains would bring renovations close to the 2006 peak of an inflation-adjusted $327 billion.

The additional spending likely would contribute to broader economic growth, creating more jobs for construction workers and building supply firms.

Driving the increased spending on contractors are rising home sales: The home renovators include both people preparing to put their homes on the market and new owners seeking to customize their homes. The projected rise also indicates that existing homeowners are upgrading kitchens and bathrooms, rather than focusing on necessary repairs for roofs.

Existing homes sold at an annual rate of 5.33 million in March, up 1.5 percent from a year ago, the National Association of Realtors said Wednesday. The median sales price rose 5.7 percent over the past year to $222,700.

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Associated Press