An interesting read from Calculated Risk which analyzes the recent publication of The BuildFax Residential Remodeling Index.
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I guarantee the bulk of this is due to investors buying foreclosures and short sales.
They usually require much work before the investor can sell or rent it out (renting it is more likely as rents are soaring).
There are stories of foreclosed homeowners ripping out the copper, punching holes in the drywall, pouring concrete in the toilet and other plumbing, etc.
TC, in the past 6 months, my brother-in-law and father have purchased 2 foreclosures, picked up for about 35K each. Both had about 25K in remodeling completed and have sold for around 125K. Just 2 weeks ago, they purchased a 3rd for 25K. It will take probably around 30K to get it ready, and will likely price around 110K. My BIA does most of the work except for some of the tile work and painting (he subs those out). It is a great time to be getting these trashed out foreclosures and fixing them up to be great first/starter homes.