Remodeling to Rise 2.5% by Q1 2026

Cambridge, MA, April 17, 2025--The Leading Indicator of Remodeling Activity (LIRA) projects that year-over-year spending for home renovation and repair will increase by 2.5% to reach a record $526 billion by the first quarter of 2026, according to the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. 

Annual expenditures for improvements and maintenance to owner-occupied homes are expected to grow modestly through 2026.

“A slight downturn after the pandemic’s record expenditures gave way to modest gains in the sector this year,” says Carlos Martín, director of the Remodeling Futures Program at the Center. “Recent increases in the sales of existing homes are expected to drive slow but steady growth in home remodeling and repair.”

“So far, high home values and other strong economic indicators have supported an uptick in homeowner improvement spending,” says Chris Herbert, managing director of the Center. “However, economic volatility due to the uncertainty surrounding foreign tariffs and falling consumer confidence could well dampen this expected growth.”