LIRA forecasts robust remodeling spending in 2018

Steady gains in the economy, and in home sales and prices, are supporting growing demand for home improvements.

Residential remodeling and repairs are expected to have another sturdy year in 2018, according to the latest Leading Indicator of Remodeling Activity released today by the Joint Center for Housing Studies of Harvard University.

LIRA projects that homeowner spending on improvements and repairs will approach $340 billion in 2018, a 7.5% increase from 2017 estimated spending

"Steady gains in the broader economy, and in home sales and prices, are supporting growing demand for home improvements," said Chris Herbert, managing director of the Joint Center for Housing Studies. "We expect the remodeling market will also get a boost this year from ongoing restoration efforts in many areas of the country impacted by last year's record-setting natural disasters."

"Despite continuing challenges of low for-sale housing inventories and contractor labor availability, 2018 could post the strongest gains for home remodeling in more than a decade," said Abbe Will, research associate in the Remodeling Futures Program at the Joint Center.

Will noted that annual growth rates have not exceeded 6.8% since early 2007, before the Great Recession hit.

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