CAMBRIDGE, MA — Annual spending for improvements and repairs to owner-occupied homes is expected to decrease at a moderate rate throughout 2024, according to the Leading Indicator of Remodeling Activity (LIRA), released today by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University.
The quarterly LIRA, which provides a short-term outlook of U.S. home improvement and repair spending to owner-occupied homes, projects that annual owner expenditures for home updates and maintenance will decline by 7.7% through the third quarter of 2024.
“The ongoing weakness in the housing market caused by high interest rates and low supply of existing homes is expected to weigh on remodeling activity next year,” said Carlos Martín, Project Director of the Remodeling Futures Program at the Cambridge, MA-based Joint Center.
“Homeowner concerns about the health and direction of the broader economy may also dampen plans for remodeling projects,” Martin added.
According to the Joint Center’s projections, the level of annual spending on improvements and repairs is projected to fall from its current level of $489 billion to $452 billion over the coming four quarters.
“While the rate of market decline should decelerate significantly in the second part of the year, 2024 is shaping up to be a challenging year for home remodeling,” said Abbe Will, associate project director of the Remodeling Futures Program.