Downturn in US home remodelling may bottom out in 2024

Joint Center for Housing Studies of Harvard University
January 18, 2024
Category: Finance & Economics
Region: United States

Spending for residential improvements and repairs is expected to shrink this year for the first time since 2010, but signs point to some easing of declines by year’s end, 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 LIRA projects that declines in annual homeowner renovation and maintenance expenditure will worsen through the third quarter of this year before moderating slightly to -6.5 percent by the end of 2024. “Home remodeling will continue to suffer this year from a perfect storm of high prices, elevated interest rates, and weak home sales,” says Carlos Martín. …“Even with the anticipated downturn, spending for improvements and repairs to owner-occupied homes this year is expected to easily surpass the robust levels seen early in the pandemic,” says Abbe Will. 

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