A Huge Share of the Latest Real Estate Boom Can Be Attributed To This

Posted on Jul 11 2017
Type Insights

We recently published a study on remodeling from three unique perspectives: historical, national, and regional.

The historical perspective is particularly compelling because it reveals a pronounced shift in investments after the housing crisis of 2008.

The graph above shows residential new construction and existing structure construction spending throughout the course of the housing crisis. Notice the relatively large gap between the values associated with new construction and existing structures which stays consistent until 2007.

Now look at the two lines from 2008 and beyond. You can see that the gap virtually disappears, which shows that investment in existing structures is keeping pace with investment in new construction. This suggests that a large share of the latest housing boom in real estate prices can be attributed to renovations.

Equity traders and portfolio managers can use this data to identify which types of construction are attracting investments. This can also provide a boost to programs and models, giving informed traders a competitive advantage.

Highlights from the article also include:

  • Changes in national residential remodeling growth and spending
  • Trends on regional remodeling and how it can affect traders

To read the complete study, “3 Unique Perspectives on the Changing Landscape of Remodeling,” click here, or the button below.


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Apr 20 2017
In the News

BuildFax property insights were recently published in The Wall Street JournalĀ in their article on high-end renovations: Where High-End Renovations Cost $704,000. Houston was the number one city for high-end renovations, with a median spend of $704,000. Boston came in at number two with a median budget of $528,000. Pittsburgh was third, with $385,000. Newark, Jersey … Continued

Jan 13 2017

Commercial remodeling is booming across the US, and some states are spending more than others. To find out which states are spending the most, BuildFax analyzed the more than 5.2 million commercial properties in our database to determine the average remodeling job cost per state in 2016. Louisiana is the biggest spender, averaging $1,308,870 for … Continued

Aug 17 2016

What can you do with building permit data? Building permit data can reveal a wealth of information on a property. Because the permit process involves a series of inspections, just knowing that a building had a permit pulled in the last 12 months means an inspector was at the property, making sure the work done … Continued