Pickup Projected in Home Improvement Activity in 2016
The extended easing of gains in residential improvement spending is expected to change course by early next year, according to the Leading Indicator of Remodeling Activity (LIRA) released last month by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. The LIRA projects annual spending growth for home improvements will accelerate to 4 percent by the first quarter of 2016.
“A major driver of the anticipated growth in remodeling spending is the recent pickup in home sales activity,” said Chris Herbert, managing director of the Joint Center. “Recent homebuyers typically spend about a third more on home improvements than non-movers, even after controlling for any age or income differences, so increasing sales this year should translate to stronger improvement spending gains next year.”