Renovation and Repair Spending to Fall, Says Joint Center for Housing Studies

Window & Door
January 22, 2019
Markets

Graph on Remodeling Activity Q4 2018

Gains in renovation and repair spending on owner-occupied homes in the U.S. will fall from 7.5 percent in 2018 to 5.1 percent in 2019, according to the most recent Leading Indicator of Remodeling Activity from the Remodeling Futures Program at the Joint Center for Housing Studies at Harvard University.

Chris Herbert, managing director of JCHS, attributes the slowdown to slowing house price appreciation, flat home sales activity and rising mortgage interest rates. “Continued slowdowns in homebuilding, sales of building materials and remodeling permits all point to a more challenging environment for home remodeling in 2019,” he adds.

Despite the slowdowns, improvement and repair spending will exceed $350 billion, says Abbe Will, associate project director in the Remodeling Futures Program at the Joint Center. “But after several years of stronger-than-average increases,” she says, “the pace of growth in remodeling activity is expected to fall back to the market’s historical average annual gain of 5.2 percent.”