Spending on home improvements and repairs is expected to keep losing momentum through mid-2027, according to the Leading Indicator of Remodeling Activity from the Joint Center for Housing Studies of Harvard University. Year-over-year growth is projected to slow to 0.5% by the second quarter of 2027, with annual spending hitting $519 billion.
Growth in remodeling permitting and retail spending on building products has flattened recently—a signal that renovation activity is cooling, according to Rachel Bogardus Drew, director of the center’s Remodeling Futures Program. This forecast marks the third consecutive quarter that year-over-year growth has decelerated.
The center’s managing director, Chris Herbert, tied the slowdown to conditions upstream: “Reduced housing starts and broader economic uncertainty are also limiting stronger gains in remodeling spending,” he said. “Until home sales rebound from current low levels, remodeling expenditures are likely to stay at this pace.”
The next LIRA forecast is scheduled for Oct. 22.
Read the full report here.
