zazamaza/iStock/Thinkstock
Ecmweb 16885 Thinkstockphotos 649626042zazamaza Istock Thinkstock 0
Ecmweb 16885 Thinkstockphotos 649626042zazamaza Istock Thinkstock 0
Ecmweb 16885 Thinkstockphotos 649626042zazamaza Istock Thinkstock 0
Ecmweb 16885 Thinkstockphotos 649626042zazamaza Istock Thinkstock 0
Ecmweb 16885 Thinkstockphotos 649626042zazamaza Istock Thinkstock 0

Remodeling Spending Expected to Rise

Oct. 19, 2017
Growing momentum projected for home improvement and repair sector

Accelerating growth in residential improvement and repair expenditures is anticipated through the third quarter of 2018, according to the Leading Indicator of Remodeling Activity (LIRA) recently released by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. The LIRA projects that annual gains in home renovation and repair spending will increase from 6.3% in the fourth quarter of 2017 to 7.7% by the third quarter of next year.

“Recent strengthening of the U.S. economy, tight for-sale housing inventories, and healthy home equity gains are all working to boost home improvement activity,” says Chris Herbert, managing director of the Joint Center for Housing Studies. “Over the coming year, owners are projected to spend in excess of $330 billion on home upgrades and replacements, as well as routine maintenance.”

According to Abbe Will, research associate in the Remodeling Futures Program at the Joint Center, although they’re not factored into the LIRA model yet, recent hurricanes will also inevitably play a role in the market as major reconstruction and repairs get underway in affected areas.

The Leading Indicator of Remodeling Activity (LIRA) provides a short-term outlook of national home improvement and repair spending to owner-occupied homes. The indicator, measured as an annual rate-of-change of its components, is designed to project the annual rate of change in spending for the current quarter and subsequent four quarters, and is intended to help identify future turning points in the business cycle of the home improvement and repair industry. Originally developed in 2007, the LIRA was re-benchmarked in April 2016 to a broader market measure based on the biennial American Housing Survey. The LIRA is released by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University in the third week after each quarter’s closing. The next LIRA release date is January 18, 2018.

Voice your opinion!

To join the conversation, and become an exclusive member of EC&M, create an account today!

Sponsored Recommendations

Electrical Conduit Comparison Chart

CHAMPION FIBERGLASS electrical conduit is a lightweight, durable option that provides lasting savings when compared to other materials. Compare electrical conduit types including...

Don't Let Burn-Through Threaten Another Data Center or Utility Project

Get the No Burn-Through Elbow eGuide to learn many reasons why Champion Fiberglass elbows will enhance your data center and utility projects today.

Considerations for Direct Burial Conduit

Installation type plays a key role in the type of conduit selected for electrical systems in industrial construction projects. Above ground, below ground, direct buried, encased...

How to Calculate Labor Costs

Most important to accurately estimating labor costs is knowing the approximate hours required for project completion. Learn how to calculate electrical labor cost.