Home improvement and maintenance spending is on the rise, with growth expected to accelerate in the second half of the year—continuing to rise through mid-2022—according to the latest Leading Indicator of Remodeling Activity (LIRA) report from the Joint Center for Housing Studies of Harvard University (JCHS).
The LIRA predicts that annual growth in home renovation and repair expenditures will reach 8.6% by the second quarter of next year.
“Home remodeling will likely grow at a faster pace given the ongoing strength of home sales, house price appreciation and new residential construction activity,” said Chris Herbert, managing director of the Joint Center for Housing Studies. “A significant rise in permits for home improvements also indicates that owners are continuing to invest in bigger discretionary and replacement projects.”
“Larger gains in retail sales of building materials suggest the remodeling market continues to be lifted by DIY activity as well,” says Abbe Will, associate project director in the Remodeling Futures Program at the Center. “By the middle of next year, annual remodeling expenditures to owner-occupied homes are expected to surpass $380 billion.”