Harvard University’s Joint Center for Housing Studies’ latest Leading Indicator of Remodeling Activity report projected total spending on home improvement and repairs to fall by 7.7% over the next four quarters to $452 billion. High interest rates, paired with less savings are limiting homeowners’ willingness to spend on home improvement projects.
Data from the National Association of Home Builders (NAHB) showed that home remodeler confidence fell during the third quarter. “While there is still demand for remodeling, we are seeing some customers pull back a bit, especially for larger projects, due to higher prices and increased interest rates,” NAHB Remodelers Chair Alan Archuleta observed.
Over the course of 2020 and 2021, the pandemic pushed interest in home improvement upward, especially with people spending more time in their homes. That interest has since started to return to pre-pandemic levels.