Remodeling Expected to Decrease Later This Year

Annual spending on improvements and maintenance to owner-occupied homes is expected to gradually slow throughout this year, according to Harvard’s Joint Center for Housing Studies. 

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

Still, even by the end, overall annual homeowner spending on improvements is expected to reach $522 billion.  

Per quarter, JCHS projects the following remodeling activity: 

• Q1: $527 million (2.9% change YOY) 
• Q2: $518 million (2.1% change YOY) 
• Q3: $517 million (2.0% change YOY) 
• Q4: $522 million (1.6% change YOY) 

“Remodeling trends closely track the health of the broader housing market,” JCHS notes. “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.”