Remodeling Growth to Slow Sharply in Early 2027

Annual spending on improvements and maintenance to owner-occupied homes is projected to slow sharply in early 2027, according to the latest Leading Indicator of Remodeling Activity (LIRA) from the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University.

The new LIRA shows year-over-year growth in home renovation and repair spending of just 0.5 percent by the first quarter of 2027—a pace that remains positive in nominal terms but is less than overall inflation.

“Growth in remodeling permits and retail spending on building products has been flat recently, signaling stagnant interest in home improvement,” said Rachel Bogardus Drew, Director of the Remodeling Futures Program at the Center. “Even so, homeowners are expected to maintain spending at roughly last year’s levels, with total improvement and repair expenditures edging up modestly to $523 billion in early 2027.”

“Remodeling follows the overall housing market,” said Chris Herbert, Managing Director of the Center. “Without a sustained rebound in construction, we’re likely to see remodeling spending remain in this low-growth range for the near future.”