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Housing Perspectives

Research, trends, and perspective from the Harvard Joint Center for Housing Studies

Continued Easing of Remodeling Declines Expected into 2025

Annual expenditures for improvements and repairs to owner-occupied homes are projected to decrease this year and into the first quarter of 2025, but at a moderating rate, according to our latest Leading Indicator of Remodeling Activity (LIRA). The LIRA projects that annual owner spending for home renovations and maintenance will decline by over 7 percent in the third quarter of this year before easing to just -2.6 percent through the first quarter of 2025.

Residential remodeling is expected to benefit from the rebounding housing market and stabilizing material costs as we move into next year. While home improvement and repair spending is down from pandemic-induced highs, the nation's aging homes continue to need investment in critical replacements, home performance deficiencies, as well as modernization.

At $451 billion, spending on homeowner improvements and repairs over the coming year is anticipated to be slightly lower than the $463 billion spent over the last year. Yet, the remodeling downturn is poised to be fairly modest and short-lived with market expenditures steadying at near-record levels.

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LIRA 2024 Q1

For more information, visit the LIRA page of our website.