Slower Growth Projected for Remodeling into Next Year

Cambridge, MA, July 18, 2025-Annual expenditures for improvements and maintenance to owner-occupied homes are expected to soften in 2026, according to the Leading Indicator of Remodeling Activity (LIRA) released this week by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. 

The LIRA projects that year-over-year spending for home renovation and repair will increase by just 1.2 percent by the second quarter of 2026.



“Weakness in the current housing market is expected to have a dampening effect on home improvement spending,” said Rachel Bogardus Drew, Director of the Remodeling Futures Program at the Center. “Slowing construction starts and remodeling permitting activity, which are key factors in predicting future remodeling expenditures, are also putting downward pressure on home improvement growth.” 

“It will be important to keep an eye on whether the housing market shows any sign of rebound in the second half of the year, to assess if this slowdown is the beginning of a more significant downturn,” says Chris Herbert, Managing Director of the Center. “However, federal cuts to incentives for home energy improvements could spur an increase in remodeling activity in the short term, as homeowners seek to take advantage of programs before they disappear.” 

The Leading Indicator of Remodeling Activity (LIRA) provides a short-term outlook of national home improvement and repair spending to owner-occupied homes.