Annual spending on improvements and maintenance to owner-occupied homes is expected to gradually slow through 2026, according to the latest Leading Indicator of Remodeling Activity (LIRA). The LIRA projects that year-over-year growth in home renovation and repair spending will be 2.9% early this year before easing to 1.6% growth by the end of the year.
Single-family home sales and permitting activity have picked up modestly from very low levels, which should support a nominal increase in remodeling activity this year. Even with some deceleration later in the year, overall annual homeowner spending on improvements is expected to reach $522 billion by the end of 2026.
Remodeling trends closely track the health of the broader housing market. If interest rates begin to ease, that could provide a boost to both housing construction and retail sales of building materials, which for now continue to pose significant headwinds to homeowner improvement spending.
