LIRA: Coronavirus Impacts Suggest A Dramatic Downturn in Remodeling Market

The Joint Center for Housing Studies projects owner expenditures for renovations and repairs will decline at least through the first quarter of 2021 due to COVID-19.

Joint Center for Housing Studies of Harvard University

Fallout from the coronavirus (COVID-19) pandemic is expected to cause owner expenditures for home renovations and repairs to decline at least through the first quarter of 2021, according to the latest Leading Indicator of Remodeling Activity (LIRA) released by the Remodeling Futures Program at the Joint Center for Housing Studies (JCHS) of Harvard University. Before the pandemic, the LIRA projected a healthy rebound in home remodeling spending and annual growth of 3.9% by the first quarter of 2021. However, data incorporating actual and projected impacts of the economic shutdown point to spending declines through 2020, with worsened spending declines in 2021.