Spending for residential remodeling is projected to retract 6.5% in 2024 compared with 2023, falling to $450 billion. It’s expected to be the first retraction in remodeling spending since 2010, according to the Joint Center for Housing Studies of Harvard University.
However, there is also evidence that the declines may bottom out by the end of 2024.
The Leading Indicator of Remodeling Activity (LIRA) found that declines in homeowner renovation and maintenance expenditure will worsen in the third quarter of 2024 before moderating by the end of the year.
“Even with the anticipated downturn, spending for improvements and repairs to owner-occupied homes this year is expected to easily surpass the robust levels seen early in the pandemic,” stated Abbe Will, associate project director of the Remodeling Futures Program. “Recent improvements in homebuilding and mortgage rates also support the prospect of turning a corner on the rate of remodeling spending losses by the end of the year.”
The full report can be found at this link.
