Home improvement spending is expected to decline sharply next year, according to The Remodeling Futures Program at the Joint Center of Housing Studies of Harvard University
The latest Leading Indicator of Remodeling Activity (LIRA), released today, projects year-over-year growth in remodeling and repair activity to decline from 16.1% in 2022 to 6.5% by the third quarter of 2023.
“Housing and remodeling markets are undoubtedly slowing from the exceptionally high and unsustainable growth rates that followed in the wake of the pandemic-induced recession,” said Carlos Martín, project director of the Remodeling Futures Program at the Center. “Spending for home improvements will continue to face headwinds from declining home sales, rising interest rates, and the increasing costs of contractor labor and building materials.”
LIRA provides a short-term outlook of national home improvement and repair spending to owner-occupied homes.