Home Improvements Will Average $5 Million Per Zip Code, Survey Says
If you’re a remodeling contractor working in zip code 20854, a suburb of Washington, D.C., your bottom line might look pretty good by the end of the year. Working in West Virginia or Mississippi? Not so much.
Potomac, Md., was ranked at the top of the zip code home improvement spending list for 2014 by the National Association of Home Builders. On a state-by-state basis, the District of Columbia, Connecticut, New Jersey, Maryland and Massachusetts headed the list. West Virginia ranked last.
Spending per home ranged from $2707 in Washington, D.C., to a low of $1454 per home in West Virginia.
In an “Eye on Housing” report that broke down spending by zip code, NAHB said estimates on improvements to owner-occupied houses were based on a model with five key variables: the number of homes in the area, the share built in the 1960s, the share built in the 1970s, the average income of the owners and their level of education.
On average, NAHB said, spending per zip code was expected to be $5.1 million this year. The top five were in Maryland, Texas, and Illinois, and each had at least 15,000 owner-occupied homes and homeowners with incomes of at least $145,000.
In an average zip code, the report says, spending was projected at about $1600 per house. The top two zip codes by spending per home should be the same as last year, one in suburban San Francisco (94528), the other in Manhattan (10007).
If you want to log on to the NAHB site for the complete zip code rankings, looks like you’ll have to be a member of NAHB Remodelers with a username and password. Sorry.