A sharp decline in the pace of redesign forecasts for 2023
Cambridge, Massachusetts — Annual gains in improvement and maintenance expenses for owner-occupied homes are expected to decline sharply by the middle of next year, according to the Leading Index of Remodeling Activity (LIRA) released last month by the Joint Housing Center’s Future Remodeling Program. Studies from Harvard University.
The LIRA expects home remodeling and repair spending to contract from 16.1% in 2022 to 6.5% by the third quarter of 2023.
“Housing and remodeling markets are undoubtedly slowing from the high and unsustainable growth rates that have ensued in the wake of the pandemic-induced recession,” said Carlos Martin, project director for the Remodeling Futures Program in Cambridge, Massachusetts.
“Home improvement spending will continue to experience headwinds from lower home sales, higher interest rates, and increased contractor labor and building material costs,” Martin added.
But even though market gains in the remodeling market are expected to subside dramatically next year, homeowners still have record levels of homeownership to support financing for renovations, according to Abe Will, associate project manager for Remodeling Futures.
“The energy efficiency retrofits spurred by the Reduction Inflation Act of 2022, as well as disaster repairs and mitigation projects in the aftermath of Hurricane Ian, will further support the expansion of the home remodeling market to nearly $450 billion in 2020,” Will said. 2023″.