Home Renovation Spending Growth Should Rise to 3.8% in '21, JCHS
Cambridge, MA, January 21, 2021-Annual gains in spending for improvements and repairs to owner-occupied homes are expected to be modestly higher in 2021 compared to last year, according to the Leading Indicator of Remodeling Activity (LIRA) released today by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. The LIRA projects an uptick in year-over-year growth of home renovation and repair expenditure from 3.5% at the close of 2020 to 3.8% by year-end 2021.
“The remodeling market continues to benefit from a strong housing market-including accelerating growth in homebuilding, sales, and home equity,” says Chris Herbert, managing director of the Joint Center for Housing Studies. “In addition to routine replacement and repair projects, homeowners are likely to pursue more and larger discretionary home improvements this year as the broader economy recovers.”
“With the release of new benchmark data from the American Housing Survey, we’ve raised our projection for market size in 2021 by about $4 billion, or 1%, to $352 billion,” says Abbe Will, associate project director in the Remodeling Futures Program at the Center. “Spending in 2018 and 2019 was slightly more robust than previously estimated, growing 12.8% over these two years compared to 11.5% as estimated.”