While still in the negatives, homeowner spending for renovations is expected to ease to -0.5% in 2025
July 19, 2024
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Renovation spending is expected to improve in the near future.
Remodeling projects are back on track after a recent slowdown in activity. A report from the Joint Center for Housing Studies of Harvard University indicates homeowner expenditures for improvements and repairs should start to stabilize during the first half of 2025, with declines in annual spending easing to just -0.5% in Q2 2025. Additionally, annual spending on homeowner improvements and maintenance is expected to reach $466 billion through Q2 2025, which is on track with spending habits seen over the past four quarters.
Economic uncertainty and continued weakness in home sales and the sale of building materials are keeping a lid on residential remodeling, although many drivers of spending are starting to firm up again. After several years of frenzied activity during the pandemic, owners are now making upgrades and repairs to their homes at a steadier and more sustainable pace.
