Annual spending on home improvements and repairs is expected to remain relatively flat through late 2027, according to the latest Leading Indicator of Remodeling Activity (LIRA) from Harvard University's Joint Center for Housing Studies. Year-over-year growth in renovation and repair spending is expected to reach just 1.5 percent 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. JCHS expects annual spending to hover around $525 billion through the third quarter of next year.
Housing starts also continue to decline, and JCHS is seeing persistent weakness in the broader housing market. These ongoing headwinds could slow growth in remodeling spending even further in the quarters ahead.