Industry News

Home Improvement Forecast Calls for Downturn in 2014


November 22_Home Improvement Forecast Image

Although home improvement spending is expected to reach its highest point since the housing boom, this growth will decline by the middle of 2014. According to the Leading Indicator of Remodeling Activity (LIRA) released last month by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University, spending is increasing at a double-digit pace in the near term, but a slowdown of this growth can be expected.

“The soft patch that homebuilding has seen in recent months, coupled with rising financing costs is expected to be reflected as slower growth in home improvement spending beginning around the middle of next year,” says Eric S. Belsky, managing director of the Joint Center for Housing Studies of Harvard University. “However, even with this projected tapering, remodeling activity should remain at healthy levels.”

The LIRA is released by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University in the third week after each quarter’s closing. The next LIRA release date is January 16, 2014.

Click here to read the full article from the Joint Center for Housing Studies of Harvard University.