The Leading Indicator of Remodeling Activity (LIRA) predicts that remodeling and repair spending will grow only 1.2% through the end of Q2 2026 to $516 billion, according to the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. Remodeling and repair spending in the second quarter of 2025 rose 1.8% over the same period in 2024. The slowdown in existing home sales and remodeling permitting is expected to lessen renovation activity compared to last quarter’s report, but short-term activity could improve as homeowners attempt to benefit from federal energy incentives while still available.
The LIRA, published quarterly, provides a short-term outlook on U.S. home improvement and repair spending for owner-occupied homes. The report is designed to project an annual rate of change in expenditures for the current and subsequent four quarters. See Harvard’s Joint Center for Housing Studies