Key Findings from the Improving America’s Housing 2025 Report
The remodeling industry has been thriving due to the aging of homes and households, as well as high property values. However, there is a need for more investment to meet the increasing demand for energy efficiency and disaster resilience.
According to the report, home improvement and repair spending have significantly increased, reaching $611 billion in 2022 from $404 billion in 2019. This spending is expected to remain above $600 billion through 2025.
Roofing, windows, and HVAC accounted for nearly half of improvement expenditures in 2023, with the average homeowner spending close to $4,700 on improvements that year.
Demographically, households headed by people of color and immigrant homeowners are contributing more to the home improvement market. Homeowners aged 65 and older also play a significant role, contributing 27% of total improvement outlays in 2023.
Over the past two decades, the number of homeowners aged 65 and older has increased by 12 million, with their average annual spending per owner more than doubling. The aging housing stock underscores the need for reinvestment, especially in homes built before 1980.
The report highlights the importance of expanding improvement and repair services for low-income homeowners living in housing with structural deficiencies. More financing tools and counseling programs can help preserve affordable housing and ensure safe living conditions for all households.
The growing frequency of climate-related events has led to increased spending on disaster-driven repairs and improvements to impact home energy use. Labor shortages in the remodeling industry, exacerbated by recent policy changes, pose challenges for the sector.
Despite these challenges, residential remodeling is expected to remain a strong economic sector in the coming years. However, more investment is needed to enhance energy efficiency, disaster resilience, and accessibility for the millions of homes across the nation.