RISMEDIA, December 7, 2009—Spending on home improvement surged 8.7% in October 2009 as American homeowners responded to tax credits, according to Marvin Windows and Doors, one of the nation’s largest manufacturers of made-to-order wood and clad wood windows and doors.
Data from the U.S. Commerce Department’s monthly construction spending index showed spending on home improvements at a seasonally adjusted annual rate of $114 billion in October – a jump of 8.7% from $104.9 billion in September. Meanwhile, spending on new, private residential construction crept up 1.1% to $136.3 billion, from $134.8 billion.
“We’ve definitely seen a greater emphasis on replacement and remodeling in our business,” said Susan Marvin, president of Marvin Windows and Doors. “With more consumers staying in their existing homes, they’re interested in improving their homes to make them more efficient and better suit their lifestyle. The $1,500 federal tax credit for energy-efficient windows and doors has also boosted interest in replacement products,” Marvin said.
For the year to date (January-October), statistics from the Commerce Department’s monthly construction spending index reinforce the finding that homeowners are devoting a much greater share of spending to home improvements vs. new construction.
Home improvement spending as a share of private residential construction spending jumped by 21.3% in the first 10 months of 2009 compared to last year, as homeowners devoted a larger proportion of their construction dollars to renovation and remodeling, rather than building new homes.
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