Annual spending on improvements and repairs to owner-occupied homes is expected to decrease at a moderate rate over the coming year, according to the Leading Indicator of Remodeling Activity (LIRA) released last Thursday (10-19-23) by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. The LIRA projects annual expenditures for home updates and maintenance to decline by 7.7% through 2024Q3.
Carlos Martin, Project Director of the Remodeling Futures Program, said, “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,” Associate Project Director Abbe Will added.
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