Remodeling Spending Is Cooling: What That Could Mean for Your Next Project

REMODELING GUIDE

Remodeling Spending Is Cooling: What That Could Mean for Your Next Project

Harvard’s latest remodeling outlook points to slower growth through mid-2027. That does not guarantee cheaper projects, but it can change how homeowners plan and compare bids.

Home renovation project in progress

Last updated: October 7, 2026.

Home-improvement spending is still enormous, but the pace of growth is cooling. The latest Harvard Joint Center for Housing Studies outlook expects annual growth in remodeling and repair spending to slow through mid-2027.

Quick takeaway: The July 2026 LIRA projects year-over-year remodeling growth slowing to about 0.5% by the second quarter of 2027, with spending around $519 billion. A slower market does not automatically mean lower contractor prices, but it is another reason to compare scope, timing, and bids carefully.

What the Forecast Actually Says

The forecast is about national spending growth, not the price of your kitchen, roof, or bathroom. Local labor demand, permit activity, material costs, and project complexity can move differently from the national average.

Why Slower Growth Can Still Matter

If demand becomes less frantic in your local market, some contractors may have more scheduling flexibility. That can improve your ability to compare proposals instead of accepting the first available date.

Use the Extra Time to Tighten the Scope

  • Make finishes and fixture allowances specific.
  • Separate optional upgrades from required work.
  • Confirm demolition, disposal, permits, and cleanup.
  • Compare payment schedules and change-order rules.

Do Not Shop on Price Alone

A low bid can become expensive when the scope is vague. Compare what is included, warranty terms, schedule assumptions, and how unforeseen conditions are handled.

Related reading: What 2026 data says about DIY vs. hiring · Home remodeling outlook for 2026 · Common remodeling mistakes to avoid

The Bottom Line

Cooling growth is a planning signal, not a promise of discounts. Use it as a reason to slow the buying process, define the project clearly, and compare complete proposals.

Source: Harvard JCHS — Remodeling Spending Poised for Further Slowdown.

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