Double-digit percentage gains are expected to continue through the second quarter of next year, before slowing, the report found.
"The soft patch that homebuilding has seen in recent months, coupled with rising financing costs, is expected to be reflected as slower growth in home-improvement spending beginning around the middle of next year," said Eric S. Belsky, managing director of the Joint Center, in a prepared statement. "However, even with this projected tapering, remodeling activity should remain at healthy levels."
The Leading Indicator of Remodeling Activity is designed to estimate national homeowner spending on improvements for the current quarter and subsequent three quarters. It's intended to help identify future turning points in the business cycle of the home improvement industry.