Zonda estimates the Residential Remodeling Index will post annual decreases through 2025, reflecting the rapidly slowing housing market and a high probability for recession.
Due to elevated mortgage rates and continued price appreciation, buying power is projected to contract further in 2023.
As mortgage rates rise to around 7%, both housing demand and the purchasing power of prospective buyers falls.
As economic conditions change, remodeling remains exceptionally strong for 2022, but the rate of growth is expected to fall sharply in the long term.
Inflation remains at 40-year highs while national housing sales levels have reverted back to pre-pandemic 2019 levels, according to Zonda’s Ali Wolf and Tim Sullivan.
