The remodeling industry is going to need a little sprucing up of its own. Harvard University expects a more modest housing recovery to cause a slow-down in home improvement spending across the country. Annual growth in home improvement spending is expected to ease to 3.1 percent - about half of peak - through the second quarter of 2015, according to Harvard's Leading Indicator of Remodeling Activity (LIRA) from the Remodeling Futures Program at the Joint Center for Housing Studies.
"Stronger gains in remodeling activity are unlikely given the recent slowdowns we've seen in housing starts, sales, and house price gains," says Chris Herbert, acting managing director at the Joint Center. "While the continued recovery in employment should ultimately keep the market on an upward trajectory, remodeling is likely to see slower growth rates moving into 2015."
Remodeling activity continues to hover around its long-term average, and in many parts of the country remodelers and contractors are still optimistic about future growth in spending. Click here for more details.
