Homeowners are expected to invest in home improvement, remodeling and repair projects through the second half of 2017 and into 2018, with spending set up a healthy 6 percent year-over-year, according to the latest Leading Indicator of Remodeling Activity (LIRA) issued by the Joint Center for Housing Studies of Harvard University. The LIRA forecasts expenditures to total $320 billion in the next year.
“Even with some easing this year, the remodeling market is expected to grow above its long-term average,” says Abbe Will, research associate in the Remodeling Futures Program at the Joint Center for Housing Studies. “Over the coming 12 months, national spending on improvements and repairs to the owner-occupied housing stock is projected to reach fully $324 billion.”
Homeowners’ ability and willingness to maintain and make upgrades to their homes is correlated to conditions in the housing market.
“The remodeling market continues to benefit from a stronger housing market, and, in particular, solid gains in house prices, which are encouraging owners to make larger investments in their homes,” says Chris Herbert, managing director of the Joint Center for Housing Studies. “Yet, weak gains in home sales activity due to tight inventories in many parts of the country is constraining opportunities for more robust remodeling growth, given that significant investments often occur around the time of a sale.”
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