Homeowners will still spend on renovations, but slowdowns in home sales and remodeling permitting may cool things a bit.
According to the latest Leading Indicator of Remodeling Activity (LIRA), a report from the Harvard Joint Center for Housing Studies, the annual growth in home improvement is expected to decline from 7.3 percent in the first quarter to 6.1 percent in Q1 2018. The rate will still be above the long-term trend of 5 percent, though.
The remodeling market is approaching a cyclical slowdown after several years of steady recovery. While the rate of growth is starting to trend down, national remodeling expenditures by homeowners are projected to reach almost $320 billion by early next year.