CAMBRIDGE, Mass. – The growth in spending on condominium improvements and repairs is expected to remain solid throughout the year and through 2022. This emerges from the Leading Indicator for Remodeling Activities (LIRA) published today by the Remodeling Futures Program of the Joint Center for Housing Studies at Harvard University. The LIRA predicts a healthy pace in annual home renovation and repair spending this year in the mid-single digits, with growth of 4.8 percent through the first quarter of next year.
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“With a financial boom from recent federal stimulus payments and a sharp appreciation in property prices, homeowners continue to invest in the maintenance and improvement of their homes,” said Chris Herbert, managing director of the Joint Center for Housing Studies. “This rise in income and the continued strength of the real estate market are encouraging homeowners to invest even more in their homes this year.”
“Although the recent surge in DIY activity is subsiding as the economy continues to open, homeowners are doing major renovations that were postponed during the pandemic,” said Abbe Will, associate project manager for the center’s Remodeling Futures program. “Shifting to more professional projects should bring homeowner remodeling spending annually to $ 370 billion by early next year.”
The Leading Indicator for Remodeling Activities (LIRA) provides a short-term outlook on national spending on home improvement and repair work on condominiums. The indicator, measured as the annual rate of change of its components, is intended to forecast the annual rate of change in spending for the current quarter and subsequent four quarters, and to help identify future turning points in the business cycle of the home improvement and repair industry. Originally developed in 2007, the LIRA was converted to a broader market size in April 2016 based on the biennial American Housing Survey.
The LIRA is released by the Remodeling Futures program at Harvard University’s Joint Center for Housing Studies in the third week after each quarter closes. The next LIRA release date is July 15, 2021.