• Home improvement spending is expected to pick up heading into 2016, according to a recent report released by Joint Center for Housing Studies of Harvard University.
  • Annual spending on home remodeling projects will increase from 2.4 percent in the second quarter of this year to 6.8 percent by the same quarter next year.
  • Still to be determined, however, is how these gains will be affected by current slowdowns in shipments of building materials and remodeling contractor employment trends.

Riding on the coattails of positive housing market conditions, home improvement spending is expected to pick up heading into 2016, according to a recent report released by Joint Center for Housing Studies of Harvard University.

The report, called the Leading Indicator of Remodeling Activity (LIRA) and released by the university’s Remodeling Futures Program, projects that annual spending on home remodeling projects will increase from 2.4 percent in the second quarter of this year to 6.8 percent by the same quarter next year.

image002

“Home improvement spending continues to benefit from the last years’ upswing in housing market conditions, including new construction, price gains, and sales,” said Chris Herbert, managing director of the Joint Center.

“Strengthening housing market conditions are encouraging owners to invest in more discretionary home improvements, such as kitchen and bath remodeling and room additions, in addition to the necessary replacements of worn components such as roofing and siding.”

“Strengthening housing market conditions are encouraging owners to invest in more discretionary home improvements, such as kitchen and bath remodeling and room additions, in addition to the necessary replacements of worn components such as roofing and siding.” – Chris Herbert, managing director of Harvard’s Joint Center for Housing Studies

Still to be determined, however, is how these gains will be affected by current slowdowns in shipments of building materials and remodeling contractor employment trends.

Abbe Will, a research analyst for the Remodeling Futures Program, said restrictive consumer lending environments are also lowering remodeler sentiment, which “could keep spending gains in the mid-single digit range going forward.”

LIRA, measured as an annual rate-of-change of its components, provides a short-term outlook of homeowner remodeling activity and is intended to help identify future turning points in the business cycle of the home-improvement industry. The next LIRA report is expected to be released in January 2016.

Email Amy Swinderman.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×