Remodeling Expenditure Estimates for More Than 26,000 ZIP Codes

Home owners who remodel in 2018 will spend an average of $7,893 on each project, according to NAHB’s recent projections of spending by ZIP code for each of over 26,000 ZIP codes across the United States. This is a 28.4% increase from the $6,148 home owners paid for an average remodeling project in 2017. As the map below shows, there are many ZIP...

Home owners who remodel in 2018 will spend an average of $7,893 on each project, according to NAHB’s recent projections of spending by ZIP code for each of over 26,000 ZIP codes across the United States. This is a 28.4% increase from the $6,148 home owners paid for an average remodeling project in 2017.

As the map below shows, there are many ZIP code areas where spending on remodeling projects averages under $5,500 and several where it is more than $11,000.  ZIP codes with high spending per improved home tend to cluster around large metro areas—especially in the Northeast.

At the very top are 17 ZIP codes where estimated spending per improved home is over $18,000. Ten of these are in the New York-Newark-Jersey City Metropolitan Statistical Area, two are in Fairfield County, Conn., and one is in a suburb of Boston. Of the remaining four, two are ZIP codes on Lake Michigan in Cook County north of Chicago, and two are close-in suburbs of San Francisco.

California, Texas, Florida, New York and Pennsylvania are projected to have the largest total spending by home owners on remodeling projects statewide. The District of Columbia, Connecticut, Massachusetts, New Jersey, and New York are projected to have the highest spending on remodeling per home.

To determine these by-ZIP code estimates, NAHB looked at the number of homes in the area, when the homes were built, the owners’ average income and other demographic traits.

NAHB expanded the data sets in 2018, providing 10 new data points including spending per improvement and additional demographic information. The data sets are a valuable tool for economists, financial analysts, product manufacturers and remodelers to help target market expansions and identify trends.

You can purchase the data sets on nahb.org to determine how much home owners will spend. Significant discounts, including a free download of more local data sets, are available for NAHB Remodeler members. For more insights, read the full article in the NAHB Eye on Housing blog from NAHB economist Paul Emrath.

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Source: nahbnow.com