CAMBRIDGE, Massachusetts – Annual expenditures for improvements and maintenance to owner-occupied homes are expected to soften in 2026, according to the Leading Indicator of Remodeling Activity (LIRA) released by the Joint Center for Housing Studies of Harvard University. The LIRA projects that year-over-year spending for home renovation and repair will increase by just 1.2 percent by the second quarter of 2026. “Weakness in the current housing market is expected to have a dampening effect on home improvement spending,” says Rachel Bogardus Drew, Director of the Remodeling Futures Program. “Slowing construction starts and remodeling permitting activity, which are key factors in predicting future remodeling expenditures, are also putting downward pressure on home improvement growth.” “It will be important to keep an eye on whether the housing market shows any sign of rebound in the second half of the year, to assess if this slowdown is the beginning of a more significant downturn,” says Chris Herbert.