Many homeowners plan to invest in their home, despite home renovation statistics and spending trends signaling a pending decline post-pandemic. And according to reports from the Joint Center for Housing Studies of Harvard University (JCHS) Leading Indicator of Remodeling Activity (LIRA), the home renovation industry has quickly surpassed the $400 billion threshold within the last two years.
“There is also a social component, where homeowners may be influenced by their neighbors or friends who are renovating their properties,” said Ermanno Affuso, professor of economics and finance at the University of South Alabama in Mobile. “Factors such as income, interest rates, and intangible factors like sentimental value and rational expectations all play a role in driving the growth in home renovations.”
According to USA Today, Kitchens and bathrooms remain top of mind for most home renovators. However, the 2022 National Association of Realtors Remodeling Impact Report reveals that less popular remodeling projects such as refinishing hardwood floors and new wood flooring offer a larger return on investment.
To better understand the home renovation industry, the USA TODAY Homefront team analyzed the 2024 U.S. Houzz & Home Study, Harvard’s JCHS Q1 2024 LIRA report and the National Association of Realtors Remodeling Impact Report.
Our findings reveal noteworthy trends as homeowners continue to remodel — whether it’s for themselves or to ready their home for sale.
