Homeowners could pull back on improvement spending next year
Fewer homeowners might be embarking on remodeling projects next year, according to a recent projection from Harvard’s Joint Center for Housing Studies.
With its Leading Indicator of Remodeling Activity, the Cambridge, Massachusetts-based institution predicted slower spending growth for improvements and maintenance of owner-occupied houses in 2026. By the second quarter of 2026, remodeling growth could clock in at just 1.2%, the JCHS predicted, down from the 1.8% growth measured in the second quarter of 2025.
“Weakness in the current housing market is expected to have a dampening effect on home improvement spending,” said Rachel Bogardus Drew, director of the Remodeling Futures Program at the JCHS, in a press release. “Slowing construction starts and remodeling permitting activity, which are key factors in predicting future remodeling expenditures, are also putting downward pressure on home improvement growth.”
Although keeping an eye on the housing market in the second half of 2025 could shed further light on future remodeling movement, careful watchers could witness a blip: “Federal cuts to incentives for home energy improvements could spur an increase in remodeling activity in the short term, as homeowners seek to take advantage of programs before they disappear,” said JCHS Managing Director Chris Herbert in the same release.
Americans spend more at car dealerships, garden stores
Retail sales in the United States rose more than expected in June despite dipping in May amid economic uncertainty.
Advanced estimates show sales were up 0.6% for the month and up 3.9% from a year earlier, according to data from the U.S. Census Bureau.
Retail trade sales were up 3.5% from last year, while nonstore retailers and food service spots were up 4.5% and 6.6% over the same period, respectively. Americans spent more at car dealerships and still went out to eat, as restaurants saw a 0.6% rise in sales. In keeping with June's warmer days, building materials and garden stores saw a 0.9% rise in sales.
Number claiming unemployment benefits trends down in US
When it came to Americans filing for unemployment benefits, U.S. jobless claims fell by 7,000 from the previous week’s revised level, according to the U.S. Department of Labor, suggesting some employment growth in the country.
For the week ending July 12, the department received 221,000 claims, down from the prior week’s revised measurement of 228,000.
The advanced seasonally adjusted insured unemployment rate was 1.3% for a number of 1.956 million the week ending July 5, flat from the preceding week’s unrevised rate and up by 2,000. The four-week moving average, however, hit its highest level since November 2021, clocking in at nearly 1.96 million.