According to the latest Leading Indicator of Remodeling Activity (LIRA) report from Harvard University’s Remodeling Futures Program, homeowner spending on renovations and repairs is expected to stabilize and slightly increase through mid-2025. Despite a recent downturn, annual spending is projected to decrease by only 0.5% from $468 billion in Q2 2024 to $466 billion in Q2 2025. Economic uncertainty and a weaker housing market have dampened renovation activity, but the pace of spending is expected to recover to a more sustainable level following the pandemic-induced surge.
For residential contractors, this trend indicates a steady market for remodeling services. Although spending growth has softened, there remains substantial investment potential in home improvements. Contractors should anticipate a gradual rise in demand for renovation projects and focus on providing value-driven solutions to meet homeowner needs during this period of moderated spending.
