According to the Harvard University’s Joint Center for Housing Studies (JCHS) latest update to its Leading Indicator of Remodeling Activity (LIRA), spending on remodeling is expected to grow, but slow down gradually, as the year goes on. The current year-over-year growth in spending on home remodeling is 2.9%, per LIRA, which is projected to decline to 1.6% growth by the end of 2026. However, even with that slowed growth, the JCHS expects annual homeowner spending on remodeling to reach $522 billion. The previous LIRA update, released in October 2025, had likewise projected slow but steady annual growth. The Federal Reserve cut interest rates in December due to concerns about the labor market outweighing still-ongoing inflation; however, at the most recent Federal Open Market Committee (FOMC) meeting, interest rates were maintained.