National spending on home remodeling projects will hit a new high in 2016, another sign of a strong housing market, according to a new analysis from Harvard researchers.
The projected spending this year, $155 billion, is expected to surpass the last spending peak of $150 billion a decade ago.
Home improvement spending will grow 4.3 percent in the first quarter of 2016, but at an even faster pace, 7.6 percent, by the third quarter of the year, according to the analysis.
“2016 is looking to be a stronger year for home renovation activity compared to 2015, thanks to the continued recovery in the owner-occupied housing market,” Chris Herbert, managing director of the Joint Center for Housing Studies of Harvard University, said in a news release.
“Rising house prices are bringing more homes to the market and increasing sales, which is a large driver of home improvement activity,” Herbert said.