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Remodeling Spending Continues To Grow in 2017

By Hannah Fullmer | Jun 15, 2017
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The National Association of Home Builders (NAHB) is foretelling a good year ahead for home remodeling. According to the organization’s 2017 projections, in the average zip code, remodelers will spend roughly $6,200 per home improvement project, up from $5,800 in NAHB’s 2016 projections.

Although this overall average is encouraging, it is important to remember that the average amount spent in each zip code varies widely across the country, ranging from under $2,300 to over $22,000.

The zip codes with the highest averages are unsurprisingly found in high-cost areas on the coasts, especially in New York and California. As a notable exception, Florida zip code 33109 (Fisher Island, off the coast of Miami Beach) has fewer than 250 owner-occupied homes but ranks third with an average spending per home improvement project of $21,124.

The leading zip codes with at least 7,000 owner-occupied homes are zip codes 10024 in New York, 77005 in Texas and 90272 in California. As numbers alone these zip codes, may not mean much, but within the context of a map, it is not surprising that these prime locations with wealthy residents lead the pack in remodel spending.

Zip code 10024 covers the Upper West Side of Manhattan, Houston zip code 77005 includes Rice University and zip code 90272 encompasses the west side Los Angeles neighborhood of Pacific Palisades. Respectively, an average of $17,234, $17,155 and $16,935 is projected to be spent per home improvement project in these areas.

NAHB’s estimates are found using data from the American Housing Survey and the American Community Survey in conjunctions with a statistical model based on five variables: number of homes in the area, the share built in the 1960s, the share built in the 1970s, the owner’s average income and their level of education.

In addition to average spending per improvement, NAHB’s remodeling projections include the five drivers of remodeling, the number of improvement projects and total spending on improvements, in each zip code across the country. The projections are sold on NAHB’s website.

About The Author

FULLMER is the senior editor at ELECTRICAL CONTRACTOR. Contact her at [email protected]

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