Harvard JCHS Projects Continued Gains for Remodeling Amid Economic Uncertainty

(Illustration courtesy of the Joint Center for Housing Studies of Harvard University)

Annual expenditures for improvements and maintenance to owner-occupied homes should grow modestly through 2026, according to the Joint Center for Housing Studies of Harvard University.

The Joint Center’s Leading Indicator of Remodeling Activity report projects that year-over-year spending for home renovation and repair will increase by 2.5% to reach a record $526 billion by the first quarter of 2026.

“A slight downturn after the pandemic’s record expenditures gave way to modest gains in the sector this year,” said Carlos Martín, Director of the Remodeling Futures Program at the Center. “Recent increases in the sales of existing homes are expected to drive slow but steady growth in home remodeling and repair.”

Chris Herbert, Managing Director of the Center, said high home values and other strong economic indicators have supported an uptick in homeowner improvement spending. “However, economic volatility due to the uncertainty surrounding foreign tariffs and falling consumer confidence could well dampen this expected growth,” he noted.

The Leading Indicator of Remodeling Activity provides a short-term outlook of national home improvement and repair spending to owner-occupied homes. The indicator is designed to project the annual rate of change in spending for the current quarter and subsequent four quarters to help identify future turning points in the business cycle of the home improvement and repair industry.