Home improvement spending is expected to continue growth through the end of 2022 and into 2023, but at a slower pace. Materials sourcing (and cost), labor challenges, and looming recessionary concerns are all contributing factors to this red hot sector’s projected deceleration.
Harvard’s Joint Center of Housing Studies expects expenditure growth to peak in Q3 of this year at 19.6%, and then decelerate to a 15.1% growth rate in Q1 2023.
“The level of annual expenditures for home improvements and repairs is set to expand to nearly $450 billion by the first quarter of 2023. Yet, the rising costs of project financing, construction materials, and labor, as well as growing concerns about a broader economic slowdown or recession may further slow remodeling growth”
– Abbe Will, Associate Project Director of the Remodeling Futures Program