U.S. Remodeling Spending to Slow in 2020
U.S. remodeling and repair activity is predicted to slow considerably by the middle of 2020, according to the Leading Indicator of Remodeling Activity (LIRA) published by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University.
The LIRA projects that increases in spending for homeowner renovation and repair will drop from 6.3% in the second quarter of 2019 to 0.4% in the second quarter of 2020, based on declining home sales and homebuilding activity as well as slowdowns in permitting. The Joint Center further noted that falling mortgage rates may incentivize home sales and refinancing, ultimately leading to an increase in remodeling activity and a softening of the slowdown predicted.
The LIRA, published quarterly, is a short-term outlook of U.S. home improvement and repair spending of owner-occupied homes and is designed to project an annual rate of change of spending for the current and subsequent four quarters. See HaCreatervard University’s Joint Center for Housing Studies