Annual spending on home improvements and repairs is expected to remain relatively flat through late 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.

Year-over-year growth in renovation and repair spending is expected to reach 1.5% by the third quarter of 2027. 

“Retail spending on building products has been flat to negative, and remodeling permits have stagnated, which points to continued sluggish renovation activity,” said Rachel Bogardus Drew, director of the Remodeling Futures Program at the Center. “We expect annual spending to hover around $525 billion through the third quarter of next year.”

Chris Herbert, managing director of the Center, noted that housing starts also continue to decline, and that there is persistent weakness in the broader housing market. “These ongoing headwinds could slow growth in remodeling spending even further in the quarters ahead.”