Remodeling Spending Increases in 2007 

Americans will spend nearly $233 billion on home remodeling this year, according to the National Association of Home Builders’ (NAHB) 2007 industry forecast. That represents a 1.9-percent increase from the record $228 billion spent in 2006, according to estimates from the U.S. Census Bureau. 

“Remodeling continues to show strength despite the housing slowdown,” says NAHB Remodelers chairman Mike Nagel, CGR, CAPS, a home remodeler from Chicago. “With more than 120 million homes in the United States plus $11 trillion in owner equity, the demand for remodeling will be there now and in the future.” Remodeling currently accounts for more than 40 percent of the home construction industry by dollar volume.

“Quite simply, we’re adding more homes each year than we’re tearing down, and these will eventually require remodeling,” says NAHB chief economist David Seiders. “Compared to other components of the housing industry, remodeling remains one of the few areas to show growth, at least in nominal terms.”

Driving the remodeling market are the size and characteristics of the housing stock. With an average age of 33 years and rising, older homes require more remodeling—both in terms of upgrading features to compete with new construction as well as maintaining their physical quality. Though remodeling is somewhat cyclical with new construction, homeowners cannot put off a major repair like a leaky roof as they can discretionary upgrades, and that stabilizes the industry during slower housing markets.

New Privately-Owned Housing Units Started in 2006 
(in million units) 

                                              U.S. Total            Northeast        Midwest          South           West
January 2006                            2,265                        241                369               1,136             519 
February                                   2,132                       186                 326               1,038            582 
March                                       1,972                       166                 294               1,023            489 
April                                         1,832                        178                 338                  881           435 
May                                         1,953                        192                 300                  949            512 
June                                        1,850                        170                 309                  911            460
July                                          1,795                        159                306                   889            441
August                                     1,665                        155                 267                   833           410 
September                                1,772                       134                 270                   975            393 
October                                    1,488                       152                 237                   718            381
November                                 1,588                       165                 222                   851            350
December                                 1,643                        180                230                   812             421
January 2007                             1,408                        196               195                    716             301
February 2007                            1,525                       135                161                   827             402
March 2007                                1,518                       123                237                   784             374
Source: U.S. Commerce Department

VALUE OF IMPORTS TO UNITED STATES 

                                                                               March ’07                  Feb. ’07                  Difference
Finished Products
Plastic windows and their frames                                    5,150,698                4,846,716                     +6.3% 
Doors and their frames, wood                                      62,455,190              55,282,972                     +13% 
Aluminum windows and their frames                             26,246,938              21,782,715                     +20.5% 
Iron windows or steel and their frames, not stainless        2,679,632                2,339,972                     +14.5% 
Wood windows, French windows and frames                17,271,215               15,245,348                    +13.3% 
Materials
Cast and rolled glass                                                   9,173,277                  8,976,228                    +2.2%
Float glass                                                                   557,721                     621,925                    -10.3%
Laminated safety glass                                                5,111,661                  4,563,795                   +12%
Insulating glass units                                                 14,763,665                14,165,327                    +4.2% 
Wood and articles of wood                                         99,415,781               86,041,675                   +15.5%
Source: U.S. Commerce Department

What Stats Do You Want to See Here Next Month? Send an e-mail to ttaffera@glass.com with your suggestions. 

DWM
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