After several years of HGTV-level home improvements and expenditures, a Harvard study is predicting a slow down - especially for purely cosmetic changes. After several years of impressive rises, spending money for improvements are expected to grow only slightly in 2023. This is according to the Leading Indicator of Remodeling Activity (LIRA) Leading Indicator of Remodeling Activity (LIRA) which was given out by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. Houston-area and nation-wide homeowners are predicted to start pulling out of the home-improvement craze this year. Dr. Gordon Smith of the University of Houston Bauer College of Business says he's not surprised given our current economic situation. " The Economics right now?!? Recession and inflation: people are beginning to worry about those things. Everybody's going to be a bit more tight about it. Convinced that the prices of necessary products could come back down later."
2021: Remodeling in Houston is Hot!
The study says homeowners are still repairing what's broken - just not as enthusiastic about upgrading their kitchen Formica as before! Dr. Smith also says our lives are changing - especially financially - and homeowners are doing more fixing than upgrading. "It is a bit of a correction. We all are making a decision about: 'is it the right time or not?!' If we HAVE to do we'll do it --- if not, we'll postpone it."
Dr. Smith says others are just waiting for the intense building materials price hikes during the Covid Lockdown to come back down.
photo: Getty
Photo: Getty Images