Annual spending for improvements and repairs to owner-occupied homes is expected to decrease at a moderate rate over the coming year, according to the latest Leading Indicator of Remodeling Activity (LIRA). The LIRA projects annual owner expenditures for home updates and maintenance to decline by 7.7% through the third quarter of 2024.
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“The ongoing weakness in the housing market caused by high interest rates and low supply of existing homes is expected to weigh on remodeling activity next year,” says Carlos Martín, project director of the Remodeling Futures Program, Joint Center for Housing Studies of Harvard University. “Homeowner concerns about the health and direction of the broader economy may also dampen plans for remodeling projects.”
“The level of annual spending on improvements and repairs is projected to fall from $489 billion today to $452 billion over the coming four quarters,” says Abbe Will, associate project director of the Remodeling Futures Program. “While the rate of market decline should decelerate significantly in the second part of the year, 2024 is shaping up to be a challenging year for home remodeling.”