Here’s some good news for lenders of home equity loans: Remodeling spending is expected to rise this year.
With more Americans buying homes and equity levels rising, remodeling and repair spending is projected to increase to $509 billion in 2025, up 1.2% compared to last year, according to Harvard University’s modeling.
“A solid labor market, rising home values and continued improvement in existing home sales are supporting greater activity in home remodeling and repair,” says Carlos MartĂn, director of the Remodeling Futures Program at Harvard’s Joint Center for Housing Studies.
“Homeowners are slowly but surely expanding the pace and scope of projects compared to the last couple years,” Martin added, pointing to increased spending on building materials and steady permitting for remodeling.
Harvard researchers noted that remodeling spending has been higher over the previous three years than originally projected, based on recently released federal data from the U.S. Department of Housing and Urban Development’s American Housing Survey.
The new data suggests that remodeling and repair spending has exceeded $500 billion each year since 2022.
