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Home remodeling spending is projected to pick up, from 6.3 percent in the fourth quarter of 2017 to 7.7 percent in the third quarter of 2018, according to the latest Leading Indicator of Remodeling Activity (LIRA) released by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. The LIRA projects more than $330 billion in home improvements and maintenance over the next year.

“Recent strengthening of the U.S. economy, tight for-sale housing inventories, and healthy home equity gains are all working to boost home improvement activity,” said Chris Herbert, managing director of the Joint Center for Housing Studies, in a statement on the LIRA. “Over the coming year, owners are projected to spend in excess of $330 billion on home upgrades and replacements, as well as routine maintenance.”

“While it’s too early for our LIRA model to capture the effects of recent hurricanes and other natural disasters experienced around the country, there is certainly potential for even stronger growth in remodeling next year as major reconstruction and repairs get underway in affected regions,” said Abbe Will, research associate in the Remodeling Futures Program at the Joint Center for Housing Studies.

Source: Joint Center for Housing Studies of Harvard University

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