How will the remodeling industry fare for 2024? The information below was taken impart from Forbes.com. If you are at all interested, I suggested your read the entire article to see what the experts are predicting for 2024 and how it will affect your business as a remodeler, or as a homeowner contemplating a renovation or a relocation. You can most likely find opposing viewpoint by “other experts” if you research this subject.
The Joint Center for Housing Studies of Harvard University recently published its latest quarterly Leading Indicator of Remodeling Activity (LIRA) report, which predicted a 5.9% decrease in home renovation spending through the second quarter of 2024.
According to this report, home improvement spending is predicted to drop by $29 billion from the 2nd quarter of 2023 to the end of 2024. For the first half of 2024, home improvement spending is expected to remain on a downward spiral.
According to the report, the main reasons for the continued decline in home renovation spending include, “high interest rates, softening house price appreciation and sluggish home sales.”
But what does this mean for current or prospective homeowners? Is now a good time to renovate or purchase a home? We spoke with some of our resident experts to help determine when you should plan that next major house project.
According to the Improving America’s Housing 2021 report by the Joint Center for Housing Studies of Harvard University. The report states, “While the U.S. economy shrank by 3.5% in 2020, spending on home improvements and repairs grew [by] more than 3%, to nearly $420 billion, as people modified living spaces for work, school and leisure in response to the Covid-19 pandemic.”
- Home renovation spending is expected to decrease from $486 billion to $457 billion in 2024.
- The main driving factors of this decrease include high and rising interest rates, lowering house price appreciation and a decrease in home sales.
- Smaller projects and projects with high ROI should be prioritized during this time.