Latest LIRA Predicts Continued Growth in Remodeling Spending
authors Abbe Will
Originally posted on Housing Perspectives from The Harvard Joint Center for Housing Studies:
Strong gains in home renovation and repair spending are expected to continue into next year before tapering, according to [The Harvard Joint Center for Housing Studies’] latest Leading Indicator of Remodeling Activity (LIRA). The LIRA projects that annual growth in home improvement and repair expenditures will continue to increase, surpassing 8 percent by the second quarter of 2017 before moderating somewhat later in the year.
Homeowner remodeling activity continues to be encouraged by rising home values and tightening for-sale inventories in many markets across the country. Yet, a recent slowdown in the expansion of single-family home building and existing home sales could pull remodeling growth off its peak by the second half of 2017.
Even as remodeling growth trends back down, levels of spending are expected to reach new highs by the third quarter of 2017. At $327 billion annually, the homeowner improvement and repair market will surpass its previous inflation-adjusted peak from 2006.
More information on the LIRA and how it is calculated can be found here.