Renovation Boom Shows Signs of Peaking in 2022

The home renovation boom that began during the pandemic may reach its peak in the third quarter of 2022, according to a report by the Harvard Joint Center for Housing Studies.

Projections from the Leading Indicator of Remodeling Activity showed that annual improvement and repair spending could reach $430 billion by the third quarter, a 19.7% year-over-year surge. Spending in the fourth quarter of 2022, however, is projected to slow to a 17.3% increase year-over-year.

“The rising costs of labor and construction materials, difficulty retaining contractors, and climbing interest rates could discourage owners from undertaking new or larger remodeling projects,” stated Abbe Will, associate Project director of the Remodeling Futures Program.

The full report can be found here.