The U.S. remodeling market is poised for growth in 2025, driven by an aging housing stock, high levels of home equity, and favorable demographics, according to the National Association of Home Builders (NAHB). Nearly half of owner-occupied homes were built before 1980, with a median age of 41 years, prompting homeowners to invest in renovations rather than relocate. NAHB forecasts a 5% increase in residential remodeling activity for 2025, followed by a 3% gain in 2026. The NAHB/Westlake Royal Remodeling Market Index indicates sustained positive sentiment among remodelers since mid-2020, reflecting strong demand despite ongoing challenges such as labor shortages and material delays.
Labor shortages persist in key trades, including finished and rough carpenters, framing crews, bricklayers, and concrete workers. Additionally, remodelers report difficulties in obtaining appliances, windows, doors, HVAC equipment, plumbing fixtures, and cabinets. Despite these hurdles, the market benefits from increased consumer awareness of aging-in-place concepts, with 98% of remodelers noting that most or some clients are familiar with such strategies. NAHB emphasizes the importance of financial planning and quality workmanship for remodelers aiming for sustained success in this evolving market.
