Harvard JCHS: Remodeling Growth Set to Downshift

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Annual spending on improvements and maintenance to owner-occupied homes is expected to gradually slow through 2026, according to the Joint Center for Housing Studies of Harvard University, Cambridge, Mass.

The Joint Center’s latest Leading Indicator of Remodeling Activity report projects that year-over-year growth in home renovation and repair spending will be 2.9% in early 2026 before easing to 1.6% growth by the end of the year.

“Single-family home sales and permitting activity have picked up modestly from very low levels, which should support a nominal increase in remodeling activity this year,” said Rachel Bogardus Drew, director of the Joint Center’s Remodeling Futures Program. “Even with some deceleration later in the year, overall annual homeowner spending on improvements is expected to reach $522 billion by the end of 2026.”

Chris Herbert, managing director of the Joint Center, noted that remodeling trends closely track the health of the broader housing market. “If interest rates begin to ease, that could provide a much-needed boost to both housing construction and retail sales of building materials, which for now continue to pose significant headwinds to homeowner improvement spending,” he said.