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Home improvements spending predicted to shrink by 2024

[May 2, 2023]

Home Remodeling Market Projected to Contract by 2024

According to the Leading Indicators of Remodeling Activity (LIRA) data recently released by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University, after more than ten years of continuous growth, annual spending on improvements and repairs to owner-occupied homes is expected to decline by early 2024. The LIRA projects that year-over-year expenditures for homeowner improvements and maintenance will post a modest 2.8% decline through 2024Q1.

In a press release, Carlos Martin, Project Director of the Remodeling Futures Program at the Center, said:

“High interest rates and sharp downturns in homebuilding and existing home sales are driving our projections for sluggish activity next year. With ongoing uncertainty in financial markets and a threat of a recession, homeowners are increasingly likely to pare back or delay projects beyond necessary replacements and repairs.”

The LIRA provides a short-term outlook of national home improvement and repair spending to owner-occupied homes. The indicator, measured as an annual rate-of-change of its components, is designed to project the annual rate of change in spending for the current quarter and subsequent four quarters, and is intended to identify future turning points in the business cycle of the home improvement and repair industry.