Tag Archives: LIRA

JCHS: (LIRA)Double Digit Growth in Remodeling Spending Expected Through Mid-Year

Double Digit Growth in Remodeling Spending Expected Through Mid-Year

 by Abbe Will
Research Analyst
The home remodeling market should see strong growth in 2014, according to our latest Leading Indicator of Remodeling Activity (LIRA).  The double-digit gains in annual home improvement spending projected for the first half of the year should moderate some to just under 10 percent by the third quarter.The ongoing growth that we’ve seen in home prices, housing starts, and existing home sales is also being reflected in home improvement activity. As owners gain more confidence in the housing market, they are likely to undertake home improvements that they have deferred.  However, the strong growth for this cycle may start to ebb a bit beginning around midyear.  By that time, we’ll be approaching the pre-recessionary levels of spending, and with borrowing costs starting to creep back up, growth rates are likely to slow some.  (Click chart to enlarge.)

For more information about the LIRA, including how it is calculated, visit the Joint Center website.

Leave a comment

Filed under JCHS

LIRA: Home Improvement Upturn Expected to Begin Tapering in 2014

Home Improvement Upturn Expected to Begin Tapering in 2014

 by Abbe Will
Research Analyst
The home remodeling market continues to improve, with strong gains expected for the remainder of 2013 and the beginning of 2014, according to our latest Leading Indicator of Remodeling Activity (LIRA).  While the LIRA continues to project annual improvement spending increasing at a double-digit pace in the near term, a slowdown of this growth can be expected by the middle of 2014.The soft patch that homebuilding has seen in recent months, coupled with rising financing costs, is expected to be reflected as slower growth in home improvement spending beginning around the middle of next year. However, even with this projected tapering, remodeling activity should remain at healthy levels.

In the near term, homeowner spending on improvements is expected to see its strongest growth since the height of the housing boom.  Existing home sales are still growing at a double-digit pace, and rising house prices are helping homeowners rebuild equity lost during the housing crash.(Click chart to enlarge.)

For more information about the LIRA, including how it is calculated, visit the Joint Center website.

Leave a comment

Filed under JCHS, LIRA