According to the Leading Indicator of Remodeling Activity (LIRA), annual expenditures for improvements and maintenance to owner-occupied homes are expected to soften in 2026. Under the Remodeling Futures Program at Harvard, the conducted study measured changes in remodel activity across the broad market. Year-over-year spending on home renovation and repair is indicated to increase by just 1.2 percent by the second quarter of 2026.
As noted by Chris Herbert, Managing Director of Harvard’s Joint Center for Housing Studies, “federal cuts to incentives for home energy improvements could spur an increase in remodeling activity in the short term, as homeowners seek to take advantage of programs before they disappear.”
