‘Strong’ Growth Foreseen for Remodeling Through 2022

‘Strong’ Growth Foreseen for Remodeling Through 2022

CAMBRIDGE, MA “Strong growth” in home improvement and maintenance expenditures is expected to continue over the coming year, according to the Leading Indicator of Remodeling Activity (LIRA) by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University.

The LIRA projects year-over-year gains in annual improvement and repair spending will reach 9% in the fourth quarter of this year and maintain that pace into 2022.

“Residential remodeling continues to benefit from a strong housing market with elevated home construction and sales activity and immense house price appreciation in markets across the country,” said Carlos Martín, project director of the Remodeling Futures Program at the Cambridge, MA-based Joint Center. “The rapid expansion of owners’ equity is likely to fuel demand for more and larger remodeling projects into next year.”

“With these tailwinds, annual improvement and repair expenditures by homeowners could reach $400 billion by the third quarter of 2022,” added Abbe Will, associate project director of the Remodeling Futures Program. Will warned, however, that “several headwinds,” including the rising costs of labor and building materials, as well as increasing interest rates, “could still taper the expected growth in remodeling spending.”

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