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Budgets for home improvements are rising, according to the latest Leading Indicator of Remodeling Activity (LIRA) released by the Remodeling Futures Program at the Joint Center for Housing Studies at Harvard University.

“A growing economy and stronger job market are boosting owners’ willingness to invest in home improvements,” said Chris Herbert, managing director of the Joint Center for Housing Studies, in a statement. “Rising home values and increased home equity levels are also encouraging more owners to do larger upgrade and replacement projects.”

“Although the projected growth for remodeling activity remains strong, the low inventory of existing homes for sale is holding back even larger gains, since significant remodeling and repair often occurs around the time of a sale,” said Abbe Will, associate project director in the Remodeling Futures Program at the Joint Center for Housing Studies, in the statement. “Even so, annual spending on residential improvements and repairs by homeowners is expected to reach nearly $350 billion by the middle of next year.”

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