U.S. Home Remodeling Spending Expected to Remain Flat Through 2027
The U.S. home improvement market faces a period of stagnation, with annual spending projected to hover around $525 billion through the third quarter of next year. According to the Joint Center for Housing Studies of Harvard University, remodeling activity is being stifled by high interest rates, elevated home prices, and weak consumer sentiment, which have effectively frozen much of the residential real estate market. While some industry segments show cautious optimism, broader indicators such as retail spending on building products and remodeling permits remain flat or negative. Remodelers are currently navigating a bifurcated market: the traditional driver of renovations during home moves has slowed due to low housing turnover, while those staying in homes are hesitant to commit to large projects due to economic uncertainty, high material costs, and labor shortages.
Topics: consumer spending home improvement spending housing market remodeling industry trends