Residential remodeling to reach $121.5 billion in 1998

By Kim Kennedy -- Industrial Distribution, 8/1/1998

After growing 3% in 1997, consumer expenditures for residential remodeling will gain another 2.6% in 1998 to reach nearly $121.5 billion.

Of this total, additions and alterations will advance 3.3% to $57.3 billion and maintenance and repair spending will increase 4.4% to $40.2 billion. But spending for major replacements will decline again in 1998 by 1.9% to $24.0 billion.

Although the detailed expenditure data is only available through 1996 at this point (the 1997 detail is expected to be released later this month), we can estimate 1998 detail using the 1996 shares. With additions and alterations expected to reach $57.3 billion this year, spending for additions will reach $12.9 billion (22.5% of the category's total). Alterations spending will total $32.2 billion (56.2% of the total), and additions and alterations to the outside property will comprise the remaining $12.2 billion (21.2% of the total). Plumbing, HVAC, and electrical projects will reach nearly $6.3 billion in spending, while kitchen and/or bath remodeling will total $8.1 billion.

Among the $40.2 billion spent for maintenance and repair projects in 1998, painting and papering will comprise the largest share (32.8%) or $13.2 billion. Plumbing, HVAC, and electrical projects will reach $8.2 billion in spending, and siding and roofing projects, $4.2 billion.

Spending for major replacements will include $6.8 billion in plumbing and HVAC replacements, $6.7 billion in roof replacements, and $3.8 billion in window replacements.

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