According to the Improving America’s Housing 2025 report, the strength of the remodeling industry has long been supported by the aging of both homes and households, as well as high property values. But more investment is needed to address growing demand for energy efficiency and disaster resilience.
Data from the report indicates that home improvement and repair spending accelerated from $404 billion in 2019 to $611 billion in 2022. It is expected to remain above $600 billion through 2025.
Roofing, windows, and heating, ventilation and air conditioning (HVAC) accounted for 49% of improvement expenditures in 2023, the most recent available data. The average homeowner spent almost $4,700 on improvements that year.
Looking at the repair and remodeling market by demographic, JCHS found that households headed by a person of color contribute more to the home improvement market. They accounted for 23% of improvement expenditures, up from 14% in 2003. Immigrant homeowners also account for a growing share of the market, up from 8% of expenditures in 2003 to 13% in 2023.
JCHS found that in 2023, homeowners ages 65 and older contributed 27% of total improvement outlays, up from 14% in 2003.
Over the past two decades, the number of 65-and-older homeowners increased by 12 million, raising their share of all homeowners from 24% to 34%. During the same period, their average annual spending per owner rose from an inflation-adjusted $1,800 in 2003 to $3,800 in 2023 — more than double the 48% growth in per capita spending among all homeowners.
At the same time, the nation’s housing stock is aging, with a median age of 44 years in 2023 — a sign of needed reinvestment. Homes built before 1980 saw average improvement spending that was 24% higher than for homes built since 2010, and maintenance spending was 76% higher. Many low-income homeowners live in housing with structural deficiencies or a lack of basic features like running water, electricity or heat.
“There is both a market opportunity and a moral imperative to expand improvement and repair services for these homeowners,” said Sophia Wedeen, a senior research analyst at JCHS. “More financing tools and counseling programs can also help preserve the affordable housing stock and ensure that all households live in safe and adequate housing.”
Modern-day concerns
The growing frequency and intensity of climate-related events like hurricanes, wildfires and flooding have increased spending for disaster-driven repairs to $49 billion in 2022 and 2023. As a result, the average homeowners insurance premium jumped 17% between 2021 and 2023, the report found.
In 2023, homeowners also spent $139 billion on improvements to impact home energy use, nearly four times the amount in 2003.
“Each energy-related improvement presents an opportunity to cut greenhouse gas emissions, increase the efficiency of the housing stock, and reduce utility costs,” said Carlos Martín, director of the remodeling futures program at JCHS.
Labor shortages are another hindrance to the repair and remodeling businesses. The study showcased a “fragmented” remodeling industry with large shares of self-employed contractors.
In the wake of recent tariff proposals and plans to deport undocumented immigrants, JCHS envisions that the industry will be hampered by the high costs of building materials and labor shortages. Between 2015 and 2023, a majority of remodelers reported a shortage of skilled trade workers — including carpenters, electricians and plumbers.
The industry also relies heavily on immigrants, which accounted for 34% of the construction trades labor force in 2023.
“Given the strong foundation and growing needs, residential remodeling is expected to remain a formidable economic sector in the years ahead,” said Chris Herbert, managing director of the JCHS. “And despite unparalleled spending in the last few years, far more investment is needed to improve energy efficiency, disaster resilience, and accessibility for the nation’s 145 million homes.”
