Annual spending for improvements and repairs to owner-occupied homes is expected to decrease at a moderate rate over the coming year, according to the Joint Center for Housing Studies [1] (JCHS) most recent Leading Indicator of Remodeling Activity (LIRA) [2]. The LIRA projects annual owner expenditures for home updates and maintenance to decline by 7.7% through Q3 of 2024.
The ongoing weakness in the housing market caused by high interest rates and low supply of existing homes is expected to weigh on remodeling activity next year. Homeowner concerns about the health and direction of the broader economy may also dampen plans for remodeling projects.
The level of annual spending on improvements and repairs is projected to fall from $489 billion today to $452 billion over the coming four quarters. While the rate of market decline should decelerate significantly in the second part of the year, 2024 is shaping up to be a challenging year for home remodeling.
The LIRA is released by the Remodeling Futures Program at the JCHS of Harvard University in the third week after each quarter’s closing. The next LIRA release date is January 18, 2024.
To read the full report, including more data, charts, and methodology, click here [3].