JCHS says remodeling will see steady growth into 2022
Remodeling spending should continue to grow into 2022, according to the Remodeling Future Program at the Joint Center for Housing Studies (JCHS) at Harvard University.
The Leading Indicator of Remodeling Activity (LIRA), released today by the JCHS, projects a healthy pace of mid-single digit gains in annual home renovation and repair spending this year, with 4.8% percent growth by the first quarter of next year.
“With a financial boost from recent federal stimulus payments and strong house price appreciation, homeowners are continuing to invest in the upkeep and improvement of their homes,” said Chris Herbert, managing director of the Joint Center for Housing Studies. “This lift in incomes and ongoing strength of the housing market are providing homeowners incentives to make even greater investments in their homes this year.”
In 2020, pandemic conditions caused homeowners to complete more DIY projects and lessen their dependence on remodeling and repairs completed by pros.
“Although the recent surge in DIY activity is slackening as the economy continues to open up, homeowners are undertaking larger discretionary renovations that had been deferred during the pandemic,” says Abbe Will, associate project director in the Remodeling Futures Program at the Center. “A shift to more professional projects should boost annual homeowner remodeling expenditures to $370 billion by early next year.”
The LIRA provides a short-term outlook of national home improvement and repair spending to owner-occupied homes.
The indicator, measured as an annual rate-of-change of its components, is designed to project the annual rate of change in spending for the current quarter and subsequent four quarters, and is intended to help identify future turning points in the business cycle of the home improvement and repair industry.