Growing Momentum Expected for Remodeling Spending

Thursday, October 19, 2017 | Abbe Will and Adam Tanaka

Accelerating growth in residential improvement and repair expenditures is anticipated through the third quarter of 2018, according to our latest Leading Indicator of Remodeling Activity (LIRA).The LIRA projects that annual gains in home renovation and repair spending will increase from 6.3 percent in the fourth quarter of 2017 to 7.7 percent by the third quarter of next year.

Recent strengthening of the US economy, tight for-sale housing inventories, and healthy home equity gains are all working to boost home improvement activity. Over the coming year, owners are projected to spend in excess of $330 billion on home upgrades and replacements, as well as routine maintenance.

And while it’s too early for our LIRA model to capture the effects of recent hurricanes and other natural disasters experienced around the country, there is certainly potential for even stronger growth in remodeling next year as major reconstruction and repairs get underway in affected regions.

 

For more information about the LIRA, including how it is calculated, visit the JCHS website.

Read More About: Remodeling
Abbe Will

Abbe Will

Research Associate

Abbe Will is a Research Associate at the Joint Center, focusing on the home improvement and repair market.  As part of the Center’s Remodeling Futures Program, Abbe contributes research for the biennial Improving America’s Housing remodeling report and administers the quarterly release of the Leading Indicator of Remodeling Activity (LIRA)....

Adam Tanaka

Adam Tanaka

JCHS Meyer Fellow

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