According to new data from Harvard University’s Joint Center for Housing Studies, annual spending on home improvements and repairs is expected to slow down until mid-2027. The latest Leading Indicator of Remodeling Activity (LIRA) suggests this will lead to a third straight quarter of decelerating year-over-year growth, with spending projected to be $519 billion through mid-2027.
“Growth in remodeling permitting and retail spending on building products has flattened recently, suggesting that renovation activity is cooling,” said Rachel Bogardus Drew, Director of the Remodeling Futures Program at the Center.
“Reduced housing starts and broader economic uncertainty are also limiting stronger gains in remodeling spending,” said Chris Herbert, Managing Director of the Center. “Until home sales rebound from current low levels, remodeling expenditures are likely to stay at this pace.”
The LIRA provides a short-term outlook of national home improvement and repair spending to owner-occupied homes. The indicator, calculated from the annual rate-of-change of its components, is designed to project the annualized spending for the current quarter and subsequent four quarters. The LIRA is intended to help identify future turning points in the business cycle of the home improvement and repair industry.
