The home remodeling boom isn’t showing signs of slowing down, according to the latest report by the Harvard Joint Center for Housing Studies.
The Leading Indicator of Remodeling Activity projected a 9% year-over-year increase in annual improvement and repair spending, and the findings indicate that pace will carry into 2022.
“Residential remodeling continues to benefit from a strong housing market with elevated home construction and sales activity and immense house price appreciation in markets across the country,” the report states. “The rapid expansion of owners’ equity is likely to fuel demand for more and larger remodeling projects into next year.”
Annual home improvement spending could reach as much as $400 billion by the third quarter of 2022. Leading potential headwinds include rising labor costs and building materials costs, as well as increasing interest rates.
The full report can be found here.