Recent data reported by the U.S. Commerce Department shows that home remodeling was a bright spot in the troubled U.S. construction industry.
Year-end figures from the Commerce Department show that spending on private, residential remodeling in 2009 totaled $125.6 billion — up 8.2 percent from 2008. Meanwhile, new residential construction spending came in at $134.8 billion — a drop of 23.5 percent from the previous year.
This has been reflected in a shift we’ve seen in our own business, as energy-efficient replacement windows and doors have outperformed our products for the new-construction market. Homeowners are more often renovating their existing homes instead of trading up to larger homes or flipping properties for a quick profit. There’s now an increased emphasis on improving the home for greater comfort, efficiency and style.
As part of that shift, remodeling grabbed a much bigger share of the overall residential construction dollar. For all of 2009, new construction accounted for 51.8 percent of residential construction spending, with remodeling at 48.2 percent. By contrast, new construction accounted for 60.3 percent of residential construction spending in 2008 and remodeling for only 39.7 percent.
The federal tax credit for energy-efficient home improvements is also giving a boost to remodeling.
Like everyone in the homebuilding industry, we’re eager to see an upturn in the new construction business, but we’re also happy to see the continuing strength of the remodeling segment.
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