After a modest downturn, homeowner expenditures for improvements and repairs are expected to trend up through the first half of 2025, according to the latest Leading Indicator of Remodeling Activity. The LIRA projects that declines in annual spending for renovations and maintenance to owner-occupied homes will ease to -0.5% through the second quarter of 2025.
Economic uncertainty and continued weakness in home sales and the sale of building materials are keeping a lid on residential remodeling, although many drivers of spending are starting to firm up again. After several years of frenzied activity during the pandemic, owners are now making upgrades and repairs to their homes at a steadier and more sustainable pace.
Annual spending on homeowner improvements and maintenance is expected to reach $466 billion through the second quarter of next year, on par with spending over the past four quarters. The home remodeling slowdown should continue to be relatively mild, with activity stabilizing just shy of last year’s peaks.
