Home Projects May Peak In 2022

Spending on home improvements and repairs is expected to expand at a stronger pace in 2022, but signs point to some easing of growth by year end of the year, says the ‘Leading Indicator of Remodeling Activity (LIRA).’ “While annual owner improvement and repair spending could reach $430 billion by the second half of 2022, several headwinds may still temper growth expectations this year,” says Abbe Will, associate project director of the Remodeling Futures Program. “The rising costs of labour and construction materials, difficulty retaining contractors, and climbing interest rates could discourage owners from undertaking new or larger remodeling projects. Therefore, remodeling may peak in the third quarter of 2022 before beginning a deceleration toward more sustainable growth rates.