Current homeowners are choosing to remodel according to their needs instead of relocating. According to the Harvard Joint Center for Housing Studies, only about 1 in 10 households changed homes in 2024. This is across varying markets from young homeowners to retired households. Many first-time homebuyers choosing to remodel their starter homes instead of leaving their pandemic-era sub-3% mortgage rates. “The reality today is that many households appear to be “locked in” to their homes,” wrote Riordan Frost, Senior Research Analyst at Harvard Joint Center for Housing Studies. As for the older households, they are choosing to age-in-place by modifying their current residences for adaptable mobility.
Despite many not relocating and moving into new homes, the remodeling industry sees this trend as a moment for growth. The National Association of Homebuilders (NAHB) predicts residential remodeling activity to increase 3% in 2026 and an additional 2% in 2027. “The typical age of a home has increased from 31 years old in 2006 to 41 years old in 2023,” said NAHB Economist Eric Lynch. “And with the dramatic rise in home equity post-pandemic, more homeowners are able to finance remodeling projects that align with their needs.”
