Annual expenditures for improvements and maintenance to owner-occupied homes are projected to remain steady through the end of this year and into the middle of 2026, according to the latest Leading Indicator of Remodeling Activity (LIRA). The LIRA projects that year-over-year spending on home renovation and repair will rise by 2.4% in early 2026 before easing to 1.9% in the third quarter of next year.
Upward trends in both remodeling permit activity and single-family home sales suggest that demand for home improvement will remain stable in the coming year. Despite the modest pace, total homeowner remodeling spending is expected to reach $524 billion in early 2026, a new record high.
If the housing market begins to show signs of momentum, remodeling could be poised for stronger growth into 2027. However, sluggish housing starts and uncertainty in the broader economy, which are factors in predicting remodeling expenditures, are creating headwinds to larger gains in renovation and repair spending.
