Home Renovation Spending Expected to Increase in 2025
Spending on home improvements and repairs is expected to rise by 1.2% in the next year
Oct. 22, 2024
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Home remodeling spending is expected to increase slightly during the next year.
After a slight decline last year, spending on home improvements and repairs for owner-occupied homes is expected to grow again by mid-2025, according to the Leading Indicator of Remodeling Activity (LIRA) from the Joint Center for Housing Studies of Harvard University. Through Q3 2025, LIRA forecasts a 1.2% increase in annual renovation and maintenance spending.
“Annual spending for home improvements and maintenance is projected to grow from $472 billion today to $477 billion through the third quarter of 2025,” says Abbe Will, Associate Director of the Remodeling Futures Program. “A quick return to growth after a fairly modest downturn ultimately means that residential remodeling and repair expenditures are expected to approach past peak levels moving forward.”
