National spending for remodeling and repairs to owner-occupied homes is projected to grow to $485 billion in 2023, a 2.6% boost compared with 2022, according to a report by the Joint Center for Housing Studies’ Leading Indicator of Remodeling Activity.
The projected growth remains a “steep deceleration” compared with the pandemic-induced boom that pushed the remodeling and repair market to surge 24% between 2019 and 2021 from $328 billion to $406 billion. By the close of 2022, home renovation and maintenance spending surged 16.3% compared with 2021.
“Slowdowns in existing home sales, house price appreciation, and mortgage refinancing activity coupled with growing concerns for a broader economic recession will cool home remodeling activity this year,” the report stated. “Homeowners are likely to pull back on high-end discretionary projects and instead focus their spending on necessary replacements and smaller projects in the immediate future.”
The full JCHS report can be found here.