On Thursday July 21st in a press release, the Joint Center for Housing Studies of Harvard University announced the release of the Leading Indicator of Remodeling Activity, or LIRA, which indicates that over the coming year, homeowner remodeling activity is projected to accelerate, keeping the rate of growth above its long-term trend. The report was released Thursday by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. The LIRA anticipates growth in home improvement and repair expenditures will reach 8.0% by the start of 2017, well in excess of its 4.9% historical average.
The Leading Indicator of Remodeling Activity (LIRA) provides a short-term outlook of national home improvement and repair spending to owner-occupied homes. The indicator, measured as an annual rate-of-change of its components, is designed to project the annual rate of change in spending for the current quarter and subsequent four quarters, and is intended to help identify future turning points in the business cycle of the home improvement and repair industry. Originally developed in 2007, the LIRA was re-benchmarked in April 2016 to a broader market measure based on the biennial American Housing Survey. An explanation of this re-benchmarking and recalculation of the LIRA model is provided in “Re-Benchmarking the Leading Indicator of Remodeling Activity.”
The LIRA is released by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University in the third week after each quarter’s closing. The next LIRA release date is October 20, 2016.
To view the original press release or additional information, click any of the links in this article.
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