Eye On Housing
The Census Bureau reported that private residential construction spending activity increased 1.8% during January. The preliminary estimate for December was boosted higher to show a 1.5% gain, versus the originally reported increase of 0.8%. After falling in July 2010 to its lowest reading since mid-1995, spending on private residential construction projects has increased in each of the last six months—rising… Read More ›
Tag Archive for ‘remodeling’
Spending on Private Residential Construction Finishes Year on a High Note
According to the Census Bureau, total spending on private residential construction projects increased 0.8% during December. The initial estimate for November was revised measurably lower from an increase of 2% down to an outright decline of 0.3% (due primarily to a sizable downward revision to home improvement spending), while the reported growth rate for October was bumped up to 2.8%…. Read More ›
An Aging Housing Stock
The American owner-occupied housing stock is growing older. And this fact may signal future increased demand for both remodeling and new home construction over the long-term. Data from the Department of Housing and Urban Development American Housing Survey (AHS) reveal that the median age of an owner-occupied home in the United States was 34 years old as of the 2009 survey…. Read More ›
Expiring Housing Tax and Finance Law: What’s on the 2012 Policy Agenda
Due to heated budget debates during the second half of last year, Congress failed to approve a 2011 “tax extenders” bill, legislation that typically extends certain business and individual tax rules that expire every year or two. This development sets up a policy fight in 2012 during which advocates will seek a retroactive extension of now-expired tax rules. However, this is not… Read More ›
Private Residential Construction Spending Climbs Higher in November
According to the Census Bureau, private residential construction spending increased 2% during November. While the initial estimate for October was revised lower to 2.3% (from 3.4%) this was offset by an increase in the September reading from 0.6% to 1.5%. Private residential construction spending has risen in each of the last four months. On a year-over-year basis, outlays have increased… Read More ›
Top 2011 Posts: Who Claimed the Energy Efficient Improvement Tax Credit?
With the end of 2011 approaching, the contributors of NAHB’s Eye on Housing thought it would be useful to take a look at the updates that attracted the most readers over the last year. In August, we used IRS data to examine claims of the 25C remodeling tax credit and the 25D residential energy tax credit. The results indicate that… Read More ›
The Importance of Home Equity Loans for Remodeling
Historically, home equity loans have been an important source of funding for home improvement spending. The following analysis demonstrates this relationship and examines what impact recent declines in home equity loan use have had on the remodeling sector, as well as the positive effects of the residential energy-efficient tax credits. In particular, as home equity withdrawal declined during the Great… Read More ›
How Did Homeowners Use the Remodeling Tax Credit?
In a previous Eye on Housing post, NAHB examined the geographic distribution of 2009 claims of the $1,500 remodeling tax credit. We now have data from the IRS on specific kinds of energy-efficient and energy producing equipment that was installed in homes to qualify for the program, as reported on IRS Form 5695 (hat tip to Charlie McCrudden of the Air… Read More ›
Who Claimed the Energy Efficient Improvement Tax Credit?
In 2009, the rules for the tax code section 25C $1,500 energy-efficient improvement tax credit and the uncapped 25D 30% tax credit for home power production equipment tax credit were significantly expanded. The 25C credit is used to improve existing primary residences by installing energy-efficient windows, doors, roofing, and some home property like water heaters. The 25D credit, which rewards homeowners for installing solar panels,… Read More ›
Remodeling Slows in the Second Quarter
The National Association of Home Builders Remodeling Market Index (RMI) dipped to 43.9 in the second quarter of 2011 from the 46.5 posted in the first quarter of the year. Remodeling activity slowed for the same reasons new construction stagnated in recent months; namely a sluggish economy, lack of consumer confidence, and a strict lending environment. And as we noted last quarter, the… Read More ›