Joint Center for Housing Studies Projects US Remodeling Will Return to Growth in 2025

On Thursday, the Remodeling Futures Program at the Joint Center for Housing Studies (JCHS) of Harvard University released its Leading Indicator of Remodeling Activity (LIRA) for Q3.

According to JCHS, after a mild pullback over the previous year, spending for improvements and repairs on owner-occupied homes is set to expand once again by the middle of 2025. LIRA projects that annual expenditures for home renovation and maintenance will grow by 1.2% through 2025Q3 (four-quarter moving rate).

Adding additional background to the LIRA report, Director of the Remodeling Futures Program Carlos Martin said:

“A continued thaw in new home construction and sales of existing homes bodes well for an uptick in residential improvement and repairs next year. Additionally, stronger gains in home values and thus home equity levels should boost both discretionary and ‘need-to-do’ replacement projects for owners staying in place.”

Abbe Will, Associate Director of the Remodeling Futures Program, added:

“Annual spending for home improvements and maintenance is projected to grow from $472 billion today to $477 billion through the third quarter of 2025. A quick return to growth after a fairly modest downturn ultimately means that residential remodeling and repair expenditures are expected to approach past peak levels moving forward.”