Annual home improvement spending has been slowing down since the third quarter of 2013, but the Joint Center for Housing Studies of Harvard University expects activity gains to begin increasing in the first quarter of 2016.
The Leading Indicator of Remodeling Activity projects annual spending growth for home improvement will increase to 4 percent in the first quarter of 2016, compared with 2.8 percent in the fourth quarter of 2015.
“A major driver of the anticipated growth in remodeling spending is the recent pick up in home sales activity,” said Chris Herbert, managing director of the Joint Center, in a statement. “Recent homebuyers typically spend about a third more on home improvements than non-movers, even after controlling for any age or income differences, so increasing sales this year should translate to stronger improvement spending gains next year.”
