NAHB has released its latest projections of spending on improvements to owner-occupied housing by zip code. The projections show total spending on improvements, the number of owner-occupied homes, as well as average spending per improvement, in each zip code for calendar year 2016. Also shown for each zip are 2016 projections for the five key variables NAHB uses to estimate home improvement spending in relatively small areas.
The five variables are number of homes in the area, the share built in the 1960s, share built in the 1970s, owners’ average income, and their level of education. To illustrate how these variables interact, consider the four zip codes where spending per improvement is over $18,000 (compared to $5,800 for the average zip code). These four zips have relatively few homes built during the “sweet spot” for remodeling (between 1960 and 1980), but this is more than offset by home owners who are highly educated and have extremely high incomes.
On the other hand, in the fifth zip code on the list (94028, Portola Valley in California), the average remodel is a little over $17,000, and this is driven in part by the age of the owner-occupied housing stock (with a third of it built between 1960 and 1980), although home owners in Portola Valley are ... Read the blog at the NAHB website