Experts are predicting home improvement spending in 2022 will reach a 17-year high. But certain markets will rise above the rest, with some expected to see 20% annual growth in spending, according to data released earlier this year by the Joint Center for Housing Studies of Harvard University (JCHS).
The forecast is derived from JCHS’ Leading Indicator of Remodeling Activity (LIRA) index. Since the second quarter of 2020, the moving rate of change in home owner spending has continued on an upward trajectory. In the second quarter of 2020, that change was just 1.5%, but it is expected to reach 19.7% by the third quarter of 2022.
However, that rate is expected to dip toward the end of the year, dropping to 17.3% in the fourth quarter. JCHS calls this “a deceleration toward more sustainable rates of growth,” resulting from the rising costs of labor and building materials, the labor shortage and higher interest rates.
The projected annual remodeling spending growth is 17% overall for this year, but that will not be the same across the country. Based on JCHS data, of the 48 major metros, just 20 will see above-average growth (14% increases or more), and only six will exceed the national prediction.
Check out the full article from Pro Remodeler to see which markets made the top 20.