If you are considering a home improvement project requiring a contractor, it may be wise to start looking for one sooner rather than later. According to a new report from the Harvard Joint Center for Housing Studies, the lull in remodeling activity may be coming to an end.
The report predicts home repairs will begin trending higher in 2025 after pulling back this year. The Center’s Leading Indicator of Remodeling Activity (LIRA) projects that declines in annual spending for renovations and maintenance to owner-occupied homes will ease to just negative 0.5% through the second quarter of 2025.
“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,” said Carlos Martín, director of the Remodeling Futures Program at the Center. “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.”
When contractors are busy, it’s more difficult to schedule a project and very few contractors offer discounts or incentives when their work is steady.
“Annual spending on homeowner improvements and maintenance is expected to reach $466 billion through the second quarter of next year, on par with spending over the past four quarters,” said Abbe Will, associate director of the Remodeling Futures Program. “The home remodeling slowdown should continue to be relatively mild, with activity stabilizing just shy of last year’s peaks.”
LIRA offers a short-term outlook of national home improvement and repair spending to owner-occupied homes. The indicator is a tool used by the industry to predict the annual spending on home improvements.