A widening affordability crisis is causing a slowdown in home sales and forcing builders to pump the brakes on new housing construction, and it may also have an adverse effect on the remodeling sector in the year ahead. Though it’s already beginning to soften, spending for home improvements and repairs is expected to remain well above the market’s historical average of 5%, and annual remodeling expenditures are still set to expand to nearly $450 billion in the first half of 2023, Harvard’s Joint Center for Housing Studies reports.
The LIRA projects year-over-year gains in remodeling expenditures to owner-occupied homes will decelerate from 17.4 percent in 2022 to 10.1 percent by the second quarter of 2023.
Slowing sales of existing homes, rising mortgage interest rates, and moderating house price appreciation are expected to dampen owners’ investments in home improvements and maintenance over the coming year. Steep slowdowns in homebuilding, retail sales of building materials, and renovation permits all also point to a cooling environment for residential remodeling.
Related Stories
Remodeling
What’s Next for the Remodeling Sector in 2023?
Remodeling demand is waning, but as fewer homeowners can afford to relocate, remodelers are still filling backlogs with a steady stream of new projects
Healthy Homes
Healthy Home Upgrades Will Focus On Wellness and Relaxation in 2023
Homeowners are upgrading their living spaces for increased comfort and wellbeing in 2023. Here are the top renovations for the year ahead...
NAHB
Get Connected at an IBS Central
From remodeling to multifamily, IBS Centrals are geared toward niche markets so you can connect with like-minded housing-industry pros
