US remodeling expected to see declines into 2025

Annual expenditures for improvements and repairs to US owner-occupied homes are projected to decrease this year and into the first quarter of 2025, but at a moderating rate, says the Leading Indicator of Remodeling Activity (LIRA) by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. The LIRA projects that annual owner spending for home renovations and maintenance will decline by over seven percent in the third quarter of this year before easing to just -2.6 percent through the first quarter of 2025.

“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,” says Abbe Will, associate director of the Remodeling Futures Program. “Yet, the remodeling downturn is poised to be fairly modest and short-lived with market expenditures steadying at near-record levels.”