Annual spending on home improvements and repairs is expected to hold roughly flat through the third quarter of 2027, according to the Leading Indicator of Remodeling Activity released by the Joint Center for Housing Studies of Harvard University. Year-over-year growth, currently 2.2%, is projected to dip to 0.5% in the first quarter of 2027 before edging back to 1.5% by the third quarter.
“Retail spending on building products has been flat to negative, and remodeling permits have stagnated, which points to continued sluggish renovation activity,” said Rachel Bogardus Drew, director of the center’s Remodeling Futures Program. “We expect annual spending to hover around $525 billion through the third quarter of next year.”
“Housing starts also continue to decline, and we are seeing persistent weakness in the broader housing market,” said Chris Herbert, the center’s managing director. “These ongoing headwinds could slow growth in remodeling spending even further in the quarters ahead.”
Read the full report here.
