Remodeling Off as Sales Slump

Home remodeling expenditures will fall this year for the first time in at least 20 years, a building trade group has said, showing that the slump in new home sales has caught up with the remodeling industry.

The National Assn. of Home Builders said Americans are expected to spend $105.7 billion this year on remodeling, down from $106.8 billion in 1990.

Fewer people are moving this year, the group said, causing remodeling expenditures to shrink.

“Typically, people do major improvements within the first few years after moving into a new home,” said Kent Colton, executive vice president of the 153,000-member trade association.

Despite the drop, the association said it predicts a 7% annual rate of growth in the overall remodeling market over the next 10 years.