Improving spending

Growth in US home improvement and repair spending is expected to accelerate from 1% in 1Q25 to 3% in a year, according to Harvard University’s Joint Center for Housing Studies. That is still a pedestrian pace compared to the home spending boom during the pandemic when growth peaked at 27% in 1Q22. In the years leading up to the pandemic, growth averaged 5%. The forecast acceleration is driven by increasing home values as home turnover still sits at its multi-decade low of 4 million units pear year. In the short-term, homeowners locked in with low mortgage rates and high home values could contribute to home improvement spending. Over the long-term, an aging housing stock and household formation among Millennials and Gen Z will contribute to growth.

Source: Joint Center for Housing Studies of Harvard University, July 2025.