Published On: Wed, Oct 31st, 2018

Home Maintenance and Remodeling Activity Rises Due to Busy Hurricane Season

A busy hurricane season has led to a rise in home maintenance and remodeling, as was the case after 2017’s busy hurricane season. BuildFax is reporting a sharp spike in activity, with maintenance volumes increasing by 5.06% at an annual rate.

Maintenance spending increased 18.14% year-over-year in September.

Annual remodeling rates are up 2.39% on an annual rate, but in September 2018, the rate of remodeling rose 15.96% compared to the same period a year prior.

Hurricane Florence photo/ NASA

Homeowners have had to perform significant repairs following the strong hurricane season which devastated North Carolina’s coast. Remodeling can be as small as installing custom kitchen cabinets or as large as repairing roofs, removing and installing flooring, or having to repair a home’s foundation.

Reports show that one-in-three homeowners are using credit cards to pay for remodeling projects in 2017. Around 25% of homeowners that used credit cards claim that they chose credit cards to take advantage of their credit card’s rewards. An additional 58% of those that put their remodeling jobs on a credit card were able to enjoy 0% interest promotions.

Median prices for renovations are also up to $10,000, and only 5% of homeowners put the entire renovation on their credit cards. The typical range of renovations placed on credit cards were between $1,500 and $4,800.

Home improvement, in terms of charges, accounted for $141 billion in credit card charges in 2017, up 13% from the year prior.

Strategic use in credit cards is being employed, according to economists. Economists suggest that many homeowners are using their cards to “take the edge off,” or using their cards to complete their project’s needs.

Older generations, those that do not fit into the millennial classification, are using their credit cards less for improvements, at a rate of 34%. Around 41% of millennials are using their credit cards for home renovations and remodeling.

LightStream Home Improvement’s Survey found that 58% of Americans are ready to tackle a home improvement project in 2018. The amount these homeowners are willing to spend is also on the rise, with 45% of respondents planning to spend $5,000 or more on their projects.

Economists suggest that millennials are more likely to use credit cards out of necessity. The age group has a difficult time receiving other financing options, and student loans tend to cut into the age group’s budget, reducing their savings capability.

Slowing home sales and rising rates are expected to hurt remodelers in the final quarter of 2018.

Author: Jacob Maslow

About the Author

- Outside contributors to the Dispatch are always welcome to offer their unique voices, contradictory opinions or presentation of information not included on the site.

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