During the pandemic, Demi Fox, a homeowner and Realtor, was ultra-focused on upgrading her home, taking on remodeling and DIY projects. But now Fox has put on the brakes and is less willing to dole out money for upgrades for her Simi Valley, Calif., home.
“We were going to do the kitchen but we’re holding back right now. Looking at the numbers, I said ‘nah,’” Fox told Yahoo Finance. “I like using my own money when I remodel. I don’t like to use any kind of loan.”
Fox is among many homeowners who are rethinking their remodeling plans following the boom during the pandemic. Less savings, higher interest rates, and the lack of housing activity in the resale market are among the reasons the industry is bracing for a slowdown.
Total spending on home improvement and repairs is projected to drop 7.7% over the next four quarters to $452 billion, researchers from Harvard University’s Joint Center for Housing Studies’ latest Leading Indicator of Remodeling Activity showed.
“The decline [expected] in 2024, if that comes to pass, would be the first decline in more than a decade,” Abbe Will, associate project director of the Remodeling Futures Program, told Yahoo Finance in an interview.
A second measure of remodeling activity also captured the slowdown.
Data from the National Association of Home Builders showed remodeler confidence slipped in the third quarter of this year, with the index measuring current conditions falling for projects of all sizes and the index gauging…
