The coming year is expected to see sustained momentum in home remodeling and repair spending, according to the Leading Indicator of Remodeling Activity (LIRA) released last week by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. The LIRA projects that annual growth in home improvement and repair expenditures will remain elevated throughout 2017 with spending levels ending the year up 6.7 percent at $317 billion, on par with the 6.9 percent growth estimated for 2016.
“Growth in home prices is continuing at a healthy pace and encouraging homeowners to make remodeling investments,” says Chris Herbert, Managing Director of the Joint Center for Housing Studies. “Home sales are remaining on an upward trajectory, as well, and this coupled with continued growth in remodeling permit activity suggests another strong year for home improvements.”
“Although above-average growth is expected this year, we’ve lowered our projection for market size somewhat with the recent release of new benchmark data from the American Housing Survey,” says Abbe Will, Research Analyst in the Remodeling Futures Program at the Joint Center. “Spending in 2014 and 2015 was not quite as robust as our LIRA model estimated, growing 11.3 percent over these two years compared to 14.3 percent as estimated.”
NEW REMODELING REPORT – FEBRUARY 28
On Tuesday, February 28, the Joint Center for Housing Studies will release its latest biennial report on the remodeling industry, Improving America’s Housing 2017: Remodeling for a New Generation. Changing household demographics are projected to support healthy growth in the industry over the coming decade as baby boomers age in place and millennials move into homeownership.