CAMBRIDGE, Massachusetts – Annual spending on improvements and maintenance to owner-occupied homes is expected to gradually slow through 2026, according to the latest Leading Indicator of Remodeling Activity (LIRA). The LIRA projects that year-over-year growth in home renovation and repair spending will be 2.9% early this year before easing to 1.6% growth by the end of the year. “Single-family home sales and permitting activity have picked up modestly from very low levels, which should support a nominal increase in remodeling activity this year,” says Rachel Bogardus Drew. “Even with some deceleration later in the year, overall annual homeowner spending on improvements is expected to reach $522 billion by the end of 2026.” “Remodeling trends closely track the health of the broader housing market,” says Chris Herbert, Managing Director of the Center.