The home remodeling market is projected to decline 2.8% through the first quarter of 2024, according to the latest Leading Indicator of Remodeling Activity by the Joint Center for Housing Studies at Harvard University.
The downturn is anticipated due to higher interest rates and a drop in homebuilding and existing home sales.
“With ongoing uncertainty in financial markets and the threat of a recession, homeowners are increasingly likely to pare back or delay projects beyond necessary replacements and repairs,” the report stated.
Spending on home improvement and maintenance is expected to top out at $458 billion in the coming year, compared with spending of $471 billion over the past four quarters.
“However, strong and steady growth in the number of homes permitted for remodeling projects, as well as a slew of federal incentives for energy-efficiency retrofits may yet buoy remodeling expenditure from steeper declines,” the report added.
