Data points to a 17-year peak in home improvement spending for 2022, but certain markets will lead, with some expected to see 20% annual growth in spending, according to data released today by the Joint Center for Housing Studies of Harvard University (JCHS).
Earlier this year, JCHS’ Leading Indicator of Remodeling Activity (LIRA) index reported a prediction for 2022 to experience the highest home improvement spending since 2005. Since the second quarter of 2020, the moving rate of change in homeowner spending has continued on an upward trajectory. In the second quarter of 2020, that change was just 1.5% but expected to reach 19.7% by the third quarter of 2022.
What comes after that 17-year peak will be a dip, from 19.7% to 17.3% in the fourth quarter. JCHS calls this “a deceleration toward more sustainable rates of growth,” resulting from the rising costs of labor and building materials, the labor shortage, and higher interest rates.
The projected annual remodeling spending growth is 17% overall for this year, but that will not be the same across the country. Based on JCHS data, of the 48 major metros, just 20 will see above-average growth (14% increases or more), and only six will exceed the national prediction.
These record rises can be attributed to home price appreciation, home sales, and high incomes, according to JCHS.
Courtesy JCHS
Here are the 20 markets expected to lead in annual increases in home improvement spending for 2022:
MARKET |
ANNUAL CHANGE IN SPENDING |
|---|---|
|
1. Tucson, AZ |
23% |
|
2. Riverside-San Bernardino-Ontario, CA |
21.9% |
|
3. Phoenix-Mesa-Scottsdale, AZ |
20.3% |
|
4. Austin-Round Rock, TX |
19.2% |
|
5. San Antonio-New Braunfels, TX |
19.1% |
|
6. Las Vegas-Henderson-Paradise, NV |
17.5% |
|
7. Sacramento--Roseville--Arden-Arcade, CA |
17.3% |
|
8. Virginia Beach-Norfolk-Newport News, VA-NC |
17.2% |
|
9. Atlanta-Sandy Springs-Roswell, GA |
16.8% |
|
10. San Diego-Carlsbad, CA |
16.6% |
|
11. Salt Lake City, UT |
16.5% |
|
12. Oklahoma City, OK |
16.3% |
|
13. Kansas City, MO-KS |
15% |
|
14. Philadelphia-Camden-Wilmington, PA-J-DE-MD |
14.9% |
|
15. New Orleans-Metairie, LA |
14.8% |
|
16. Raleigh, NC |
14.7% |
|
17. Charlotte-Concord-Gastonia, NC-SC |
14.4% |
|
18. Portland-Vancouver-Hillsboro, OR-WA |
14.1% |
|
19. Houston-The Woodlands-Sugar Land, TX |
13.9% |
|
20. Tied: Orlando-Kissimmee-Sanford, FL and Cincinnati, OH-KY-IN |
13.7% |
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