Latest Harvard Report Shows Above-Average Gains to Continue in
Home Renovation, Repair Spending
In his response to Harvard University’s latest Leading Indicator of Remodeling Activity (LIRA) report, EnerBank USA President & CEO Charles Knadler said contractors who provide a choice of payment options to all of their customers could see up to 30 percent growth in sales—or more—in business during an industrywide increase in home improvement spending.
The report by the Remodeling Futures Program at Harvard’s Joint Center for Housing Studies, released Oct. 20, said homeowner-remodeling activity is projected to accelerate to 8 percent by the start of 2017, “even as remodeling growth trends back down, levels of spending are expected to reach new highs by the third quarter of next year.” In fact, according to the release, annual spending is set to reach $327 billion by the end of 2017, and the “the homeowner improvement and repair market will surpass its previous inflation-adjusted peak from 2006.”
“The real question now is not whether consumers are going to remodel or repair, but which contractor will they choose for the job,” Knadler said. “As past experience has shown, contractors who can offer a choice of a same-as-cash loan and a loan with low monthly payments will get the lion’s share of new business. Many consumers will choose financing that is easier and faster to get than home equity loans and less expensive than high interest credit cards.”
Joint Center managing director Chris Herbert attributes the strong growth in remodeling to increased home values across the United States. “Homeowner remodeling activity continues to be encouraged by rising home values and tightening for-sale inventories in many markets across the country.”
About EnerBank USA—America’s home improvement lender of choice
EnerBank is a highly specialized bank headquartered in Salt Lake City. It exists to help home improvement contractors grow their businesses and consumers realize their home improvement dreams. EnerBank provides unsecured home improvement loans to homeowners through strategic business partners and independent home improvement contractors throughout the United States. Strategic partners include manufacturers, distributors, franchisors, and major retailers of home improvement, remodeling, and energy-saving products and services. Visit www.enerbank.com for more information.