The COVID-19 pandemic focused Americans' attention on their homes to an unprecedented degree and spurred growth in the U.S. remodeling market to the tune of $567 billion in 2022. But a recent report from the Joint Center for Housing Studies of Harvard University titled "Improving America's Housing 2023," finds that "a meaningful share of the housing stock remains in dire need of investment."
The widespread adoption of remote work, massive growth in home equity and savings, and the aging of the housing stock boosted annual spending on improvements and repairs to owner-occupied homes 24 percent between 2019 and 2021 to $406 billion, or an annual pace of growth more than double the historical average of 5 percent. Although the overwhelming share of improvement funding came from savings, more than 1 in 5 projects costing $50,000 or more were paid for with home equity. Homes are an important source of wealth for most owners, but racial and ethnic disparities in equity gains suggest widening gaps in remodeling activity and housing adequacy. Greater public funding for retrofits and repairs, as well as expansion of the remodeling workforce, will be vital for addressing inequities.
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