This article was originally published on Oct. 21, 2024 on Kitchen & Bath Design News.
CAMBRIDGE, MA — 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 next year, according to the Leading Indicator of Remodeling Activity (LIRA), a quarterly market gauge released by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University.
The latest LIRA, released in mid-October, projects that annual expenditures for home renovation and maintenance will grow by 1.2% through the third quarter of 2025.
“A continued thaw in new home construction and sales of existing homes bodes well for an uptick in residential improvement and repairs next year,” said Carlos Martín, director of the Remodeling Futures Program at the Cambridge, MA-based Joint Center. “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,” Martin added.
Annual spending for home improvements and maintenance is projected to grow from its current level of $472 billion to $477 billion through the third quarter of 2025, said Abbe Will, associate director of the Remodeling Futures Program.
“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,” Will observed.