Annual spending on improvements and maintenance to owner-occupied homes is projected to slow sharply in early 2027, according to our latest Leading Indicator of Remodeling Activity (LIRA). The new LIRA shows year-over-year growth in home renovation and repair spending of just 0.5 percent by the first quarter of 2027—a pace that remains positive in nominal terms but is less than overall inflation.
Growth in remodeling permits and retail spending on building products has been flat recently, signaling stagnant interest in home improvement. Even so, homeowners are expected to maintain spending at roughly last year’s levels, with total improvement and repair expenditures edging up modestly to $523 billion in early 2027.
Remodeling follows the overall housing market. Without a sustained rebound in construction, we’re likely to see remodeling spending remain in this low-growth range for the near future.