From surge to slump

Growth in home improvement and repairs spending is slowing down in the US and is forecast to decline in the first half of 2024 according to Harvard University’s Joint Center for Housing Studies. That is a normalization after above-average growth from 2020 to 2022 when the pandemic spurred a variety of housing and lifestyle changes that encouraged remodeling spending. The changing housing market also plays a role, but views are mixed. Households are moving less, and this is expected to cause a decline in renovation activity due to higher interest rates, a decline in house prices and sluggish home sales. On the other hand, many homeowners with low mortgage rates are reluctant to move and are likely continuing to renovate or take advantage of new government incentives to increase energy efficiency.

Source: Joint Center for Housing Studies of Harvard University, July 2023.