Home improvement and repair spending is expected to slow during the first half of next year, with year-over-year gains decelerating from 17.4% in 2022 to 10.1% by the second quarter of 2023, Harvard’s Joint Center for Housing Studies predicted.
“Slowing sales of existing homes, rising mortgage interest rates, and moderating house price appreciation are expected to dampen owners’ investments in home improvements and maintenance over the coming year,” the latest Leading Indicator of Remodeling Activity report stated. “Steep slowdowns in homebuilding, retail sales of building materials, and renovation permits all also point to a cooling environment for residential remodeling.”
However, spending for home improvement and repairs are expected to remain “well above” the historical average of 5%, and spending is on track to grow to nearly $450 billion.
