CAMBRIDGE, Mass.—Solid growth is expected in the home remodeling market this year, but momentum may begin to moderate in the fourth quarter, according to the Leading Indicator of Remodeling Activity (LIRA) released by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. Sluggishness in the housing market and, specifically, in home sales may result in a deceleration of home improvement spending from double-digit annual growth through the third quarter to a year-over-year gain in the high single digits by the end of 2014.
“Home improvement spending has already recovered a significant share of its losses from the downturn,” says Kermit Baker, director of the Remodeling Futures Program at the Joint Center. “As spending moves into the next phase, we expect to see recent double-digit growth tail off to its longer-term average in the mid-single-digit range.”
More on the LIRA or information on the Joint Center for Housing Studies of Harvard University can be found here.