Spending on home remodeling may increase just 1.5% in 2020, according to Harvard’s Joint Center for Housing Studies, down from an average annual growth of about 5%.
The Leading Indicator of Remodeling Activity projects that remodeling expenditures should pick up over the course of the year, eventually expanding to $330 billion.
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“While home building and sales activity are now firming, softness from earlier last year will continue to pull on remodeling spending growth in 2020,” Abbe Will, research associate and associate project director of remodeling futures at JCHS, wrote in the report.
Will added, “However, the slowdown should begin to moderate by year-end as today’s healthier housing market indicators will ultimately lead to more home renovation and repair.”
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Danielle Andrus was previously the managing editor for Colorado Builder, and is currently Editor for the Journal of Financial Planning.