Remodeling Expected to Continue Slow but Steady Growth into Next Year

Annual expenditures for improvements and maintenance to owner-occupied homes are projected to remain steady through the end of this year and into the middle of 2026, according to the Leading Indicator of Remodeling Activity (LIRA) from the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University.

 The LIRA projects that year-over-year spending on home renovation and repair will rise by 2.4 percent in early 2026 before easing to 1.9 percent in the third quarter of next year.



“Upward trends in both remodeling permit activity and single-family home sales suggest that demand for home improvement will remain stable in the coming year,” said Rachel Bogardus Drew, director of the Remodeling Futures Program. “Despite the modest pace, total homeowner remodeling spending is expected to reach $524 billion in early 2026, a new record high.”



“If the housing market begins to show signs of momentum, remodeling could be poised for stronger growth into 2027,” added Chris Herbert, the Center’s managing director. “However, sluggish housing starts and uncertainty in the broader economy, which are factors in predicting remodeling expenditures, are creating headwinds to larger gains in renovation and repair spending.”