Home remodeling spending is expected to remain positive through early 2027, but growth will slow to a pace below overall inflation, according to new data from Harvard University’s Joint Center for Housing Studies.
The Joint Center’s Leading Indicator of Remodeling Activity (LIRA) projects year-over-year growth in home renovation and repair spending of 0.5 percent by the first quarter of 2027. Total improvement and repair expenditures are expected to reach $523 billion — up from $521 billion in Q1 2026.
“Growth in remodeling permits and retail spending on building products has been flat recently, signaling stagnant interest in home improvement,” said Rachel Bogardus Drew, director of the Remodeling Futures Program at the Center.
Chris Herbert, managing director of the Center, tied the slowdown to broader housing market conditions. “Without a sustained rebound in construction, we’re likely to see remodeling spending remain in this low-growth range for the near future,” Herbert said.
The LIRA tracks national home improvement and repair spending on owner-occupied homes. Annual spending growth peaked at 11.9 percent in Q2 2023 before declining, bottoming at -2.7 percent in Q3 2024. Growth turned positive again in Q2 2025.
The next LIRA release is scheduled for July 23, 2026.
