Continued
2007 2008 2009 2010 2011 2012 2013 2014 2015E 2016P 2017P 2018P 2019P
$90
$80
$70
$60
$50
$40
$30
$20
$10
$0
Billions
$USD
Burns Residential Repair and Remodel Spending: Rental Remodels
■ Rental Big Projects ■ Rental Small Projects ■ Rental Disaster Repairs
Source: John Burns Real Estate Consulting, LLC (Data: Aug-16, Pub: Aug-16) Note: Above values are nominal, not adjusted for inflation
After 70 percent growth from 2010-2016, rental remodeling spending growth will plateau near record levels. Increased single-family rental volume
has resulted in higher levels of expenditures vs. prior cycles, and Burns expects the overall level of rental remodeling to remain high.
2017-2019 Plateau is
Higher Than All Other
Years, Except 2016
Owner Big Project Spending
1.4%
Inflationary Price
Increase
3.7%
Trade-up in Project
Type and Product Mix
1%
Growth in Owner
Households
Flat Growth in Big
Project Remodels
per HH
2016
$71.6 Billion
2017
$75.9 Billion
5% Increase
in spending per
project
1% Increase
in the number of big
projects
Source: John Burns Real Estate Consulting, LLC (Data: Aug-16, Pub: Aug-16)
A 6 percent increase in 2017 big projects (over $5,000) will include 1 percent more projects and 5 percent higher spending per project.
Burns expects trade-ups in project type and materials in 2016 and 2017. Home Equity Line of Credit will drive increased spending per project.
70%
Increase
SPECIAL REPORT: Industry Forecast
34 October 2016 QR QualifiedRemodeler.com