If you have been sitting on a kitchen refresh, a bathroom update or a bigger renovation and wondering whether now is the right moment, a new national forecast is worth a few minutes of your time. On October 22, 2026, Harvard’s Joint Center for Housing Studies released its latest outlook for home improvement spending, and the short version is this: the remodeling market is expected to stay steady and quiet through late 2027. Here is what the report says, and what it may mean for homeowners planning projects in Montgomery County and around the DC area.

What happened

Every quarter, the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University publishes the Leading Indicator of Remodeling Activity, known as the LIRA. It is a short-term outlook for national spending on improvements and repairs to owner-occupied homes.

The October release projects that annual spending on home improvements and repairs will remain relatively flat through late 2027. Year-over-year growth in renovation and repair spending is expected to reach just 1.5 percent by the third quarter of 2027, with annual spending hovering around $525 billion.

The researchers pointed to a few reasons. Rachel Bogardus Drew, Director of the Remodeling Futures Program, said retail spending on building products has been flat to negative and remodeling permits have stagnated. Chris Herbert, the Center’s Managing Director, added that housing starts continue to decline and the broader housing market remains weak.

Remodeling permits “have stagnated, which points to continued sluggish renovation activity.” — Rachel Bogardus Drew, Harvard Joint Center for Housing Studies

What it means for Montgomery County and DC-area homeowners

The LIRA is a national forecast. It does not break out Maryland or the Washington region, so it cannot tell you exactly what is happening on your street in Silver Spring, Bethesda or Chevy Chase. What it does describe is the general climate the design and construction trades are working in right now, and that climate has some practical implications.

A flat market is not a bad market. It simply means homeowners as a whole are spending at about the same level as before rather than rushing into new projects. For you, a calmer pace can mean more room to plan carefully instead of reacting to a crowded calendar. It is also a good reminder that a renovation does not need to be timed to a headline. The best time to start is usually when your household’s needs, budget and plans line up.

It is also worth remembering that a forecast describes spending in total, not the cost of any single project. Your own budget will still depend on the scope of work, the materials and finishes you choose, the condition of your home and the team you hire. A careful plan matters far more to your final number than a national trend line does.

For anyone who has been weighing whether to move or stay put, the report’s note about weak housing starts and a sluggish housing market may sound familiar. If staying put is your plan, the question becomes how to make the house you already have work better, whether that means a kitchen that suits how the family actually cooks or a bathroom that is easier to use every day.

What to do now

  • Start with how you live, not with finishes. Write down what frustrates you about the space today: storage, flow, lighting, too few outlets, a layout that no longer fits. That list shapes the scope more than any trend does.
  • Set a realistic budget range and a contingency. Decide on a comfortable range before you fall in love with a material, and keep a reserve for the surprises that older homes often hold behind the walls.
  • Use a steady market to plan thoroughly. Finalize your layout, drawings and selections before demolition begins. Decisions made early tend to cost less than changes made mid-project.
  • Ask about permits early. Kitchen, bath and layout changes can require permits. Ask your contractor or design team what your project needs so it does not hold up your schedule later.
  • Think in phases if you need to. If a whole-home project feels like too much at once, a phased plan lets you tackle one room now with a clear design for what comes next.
  • Plan furnishings with the renovation, not after it. Choosing furniture, lighting and window treatments alongside the construction plan helps the finished rooms feel complete and avoids pieces that do not fit.

Planning a renovation with Interiors by Design

Whether the market is busy or quiet, good design starts with a clear plan. Our studio works with homeowners from early layout and space planning through finishes, furnishings and installation. If a kitchen or bathroom is on your list, our kitchen and bath design work focuses on spaces that are comfortable, well organized and easy to live in. For larger projects, our residential renovation services guide you through each stage, and our FF&E planning helps make sure the furniture, lighting and details fit the finished space.

With studios in Silver Spring and Bethesda, we are happy to talk through your home, your timeline and your goals. Call us at (301) 933-7723 to schedule a consultation.

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