Annual expenditures for improvements and maintenance to owner-occupied homes are expected to grow modestly through 2026, according to our latest Leading Indicator of Remodeling Activity (LIRA). The LIRA projects that year-over-year spending for home renovation and repair will increase by 2.5 percent to reach a record $526 billion by the first quarter of 2026.

A slight downturn after the pandemic’s record expenditures gave way to modest gains in the sector this year. Recent increases in the sales of existing homes are expected to drive slow but steady growth in home remodeling and repair.

So far, high home values and other strong economic indicators have supported an uptick in homeowner improvement spending. However, economic volatility due to the uncertainty surrounding foreign tariffs and falling consumer confidence could well dampen this expected growth.

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For more information, visit the LIRA page of our website.