By Pro Remodeler
Data points to a 17-year peak in home improvement spending for 2022, but certain markets will lead, with some expected to see 20% annual growth in spending, according to data released today by the Joint Center for Housing Studies of Harvard University (JCHS).
Earlier this year, JCHS’ Leading Indicator of Remodeling Activity (LIRA) index reported a prediction for 2022 to experience the highest home improvement spending since 2005. Since the second quarter of 2020, the moving rate of change in homeowner spending has continued on an upward trajectory. In the second quarter of 2020, that change was just 1.5% but expected to reach 19.7% by the third quarter of 2022.
What comes after that 17-year peak will be a dip, from 19.7% to 17.3% in the fourth quarter. JCHS calls this “a deceleration toward more sustainable rates of growth,” resulting from the rising costs of labor and building materials, the labor shortage, and higher interest rates.