Home Improvement Predicted to Slowdown
Analysts are expecting less remodeling and repair spending in 2020, with expenses predicted to rise 1.5 percent this year—far from the historical 5-7 percent range of recent years, according to the latest Leading Indicator of Remodeling Activity (LIRA) from Harvard University's Joint Center for Housing Studies' Remodeling Futures Program.
"While home-building and sales activity are now firming, softness from earlier last year will continue to pull on remodeling spending growth in 2020," said Chris Herbert, managing director of the Joint Center for Housing Studies, in a statement. "However, the slowdown should begin to moderate by year-end as today's healthier housing market indicators will ultimately lead to more home renovation and repair."
"A 2020 growth projection of less than 2 percent is certainly lackluster for the remodeling market, especially given historical average annual growth of about 5 percent," said Abbe Will, associate project director in the Joint Center for Housing Studies' Remodeling Futures Program. "Even so, homeowner improvement and repair expenditures are still set to expand this year to over $330 billion."
Source: Harvard University Joint Center for Housing Studies