Remodeling activity to rise by 1.2% through 2025

Spending on improvements and repairs for owner-occupied homes is expected to rebound after a mild pullback, according to the Leading Indicator of Remodeling Activity (LIRA) released by Harvard University’s Remodeling Futures Program. The LIRA forecasts a 1.2% growth in annual expenditures for home renovation and maintenance, rising from $472 billion today to $477 billion by the third quarter of 2025.

Carlos Martín, director of the Remodeling Futures Program, noted that an increase in new home construction and existing home sales is likely to drive residential improvements. He stated, “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.”

The LIRA, which provides insights into national home improvement spending, aims to identify trends in the remodeling industry. The next report will be released on January 16, 2025.