U.S. Home Remodeling Activity Reaches Record Levels in July, Highest Since 2004

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According to BuildFax, remodeling activity continues to soar in July as millions of Americans are either unable to secure a mortgage, or have to remain in their current home because they cannot sell the property.

BuildFax's Remodeling Index (BFRI) for July 2011 shows that remodeling activity reached a record high during the month. The data also indicates that as consumers are putting more discretionary income into their homes, there are now a record number of under-insured properties from coast to coast.

The latest BFRI shows that July 2011 became the month with the highest level of remodeling activity since the Index was introduced in 2004. During these historically difficult economic times there has been an upswing in the sales of building materials and the number of renovations greater than $10,000. These factors, and that fact that many consumers have not increased the insurance on their homes to account for the remodeling, puts many homes at risk as they are not carrying the proper level of insurance for the new, true value of their homes.

"As millions of Americans believe that they will not be able to secure a new home due to a variety of factors including tight credit, limited buyers and challenging job prospects, they are more and more turning to renovating and remodeling their current properties, sending remodeling activity to record levels," said Joe Emison, Vice President of Research and Development at BuildFax. "However, this remodeling boom is leaving many of these properties under-insured, as the value of these renovations are often not being captured by the homeowners' insurance companies."

Today's report reveals continued month-over-month gains for most regions of the country, with data demonstrating that consumers are continuing to invest in remodeling, even as fears grow of a double-dip recession and unemployment remains above 9 percent.

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