The Harvard Joint Center for Housing Studies’ 2025 report, Improving America’s Housing, highlights a significant surge in home improvement and repair spending, which soared to $611 billion in 2022—a 51% increase from $404 billion in 2019. Although there was a slight decline of 0.3% in 2023, expenditures remained substantially higher than pre-pandemic levels. This sustained investment is attributed to factors such as increased home equity, the aging housing stock, and the shift toward remote work, prompting homeowners to adapt their living spaces to new needs. The report anticipates that remodeling spending will stay near these elevated levels through 2025, despite challenges like high interest rates, labor shortages, and rising material costs .
The report also underscores the growing necessity for investments aimed at enhancing energy efficiency, disaster resilience, and accessibility in the nation’s 145 million homes. With climate-related disasters becoming more frequent and an aging population requiring more accessible living spaces, the demand for such improvements is expected to rise. However, the industry faces hurdles, including a fragmented market and a shortage of skilled labor, which could impede progress. Addressing these challenges is crucial to modernizing and preserving the U.S. housing stock, ensuring it meets the evolving needs of its residents .
