Home remodeling and improvement spending in the US statistics & facts

Home remodeling in the US at a glance

Americans spend almost as much improving the homes they already own as builders spend on new single-family houses. According to the Joint Center for Housing Studies (JCHS) at Harvard University, homeowners spent about 509 billion dollars on improvements and repairs in 2025, and the JCHS projects spending of around 518 billion dollars by the end of 2026. Remodeling has become one of the most stable parts of the housing market, supported by an ageing housing stock and by owners who prefer to renovate rather than sell and give up a low mortgage rate. For the full market, see our overview of residential construction in the United States.

The growth over the past decade has been remarkable. The JCHS estimates that spending on owner improvements grew 153 percent over ten years, far faster than spending on new single-family homes, which grew 90 percent, or new multifamily buildings, up 84 percent. Improvements now account for 41 percent of residential construction spending, up from 34 percent in 2015. Growth is slowing in 2026, however, as high borrowing costs and weaker home sales weigh on large projects.

Remodeling spending over time

Remodeling spending boomed during the pandemic, when people spent more time at home and had more money to spend on it. The JCHS estimates that homeowner improvement and repair spending jumped 26.6 percent to about 515 billion dollars in 2022. It eased to about 510 billion dollars in 2023 and an estimated 503 billion dollars in 2024 as interest rates rose and home sales slowed, before recovering to about 509 billion dollars in 2025.

Steady at over 500 billion dollars: homeowner remodeling spending has stayed between about 503 and 518 billion dollars a year since 2022.

The latest JCHS projection, published in July 2026, expects spending of about 517 billion dollars in the four quarters to mid 2026, rising to about 519 billion dollars by mid 2027. Annual growth is expected to slow from 2.1 percent in the third quarter of 2026 to just 0.5 percent by mid 2027. The JCHS updates its Leading Indicator of Remodeling Activity every quarter; the next release is scheduled for October 22, 2026.

Improvements in the construction spending data

The Census Bureau construction spending data offer a second view. Private residential construction in the Census data covers new single-family homes, new multifamily buildings and improvements to existing homes. Because the Census Bureau does not publish improvements as a separate line in its monthly tables, the improvement figure is calculated as the difference between total private residential spending and new construction. On this basis, improvements were about 371.2 billion dollars in 2024 and 370.9 billion dollars in 2025, almost unchanged.

Slowing in 2026: improvement spending in the Census data ran about 7.4 percent below a year earlier in August 2026.

The monthly data show a slowdown in 2026. In August 2026, residential improvements were running at an estimated annual rate of about 363.2 billion dollars, about 7.4 percent less than the 392.3 billion dollars of August 2025. The Census and JCHS figures differ because they use different sources and definitions: the JCHS figure includes repairs and covers owner-occupied homes, while the Census figure covers improvements to all private residential buildings. The difference between new single-family and multifamily construction is covered in our report on single-family vs multifamily construction.

Remodeling vs new construction

Over the past decade, spending on improvements has grown much faster than spending on new homes. According to the JCHS, owner improvement spending rose 153 percent over ten years, compared with 90 percent for new single-family construction and 84 percent for new multifamily construction. In 2025, owner improvement spending of about 376 billion dollars was not far behind the 419 billion dollars spent on new single-family homes.

Remodeling outgrew new building: owner improvement spending rose 153 percent in ten years, compared with 90 percent for new single-family homes.

Several forces explain this shift. Many homeowners refinanced at very low mortgage rates in 2020 and 2021 and are reluctant to sell and buy a new home at much higher rates, so they improve their current home instead. The typical homeowner now stays longer: according to the National Association of Realtors, sellers had lived in their home for a median of 11 years, a record. And the cost of new homes, covered in our report on the cost to build a house, makes renovation an attractive alternative.

Almost as large: owners spent about 376 billion dollars on improvements in 2025, compared with 419 billion dollars on new single-family construction.

What drives remodeling demand

An ageing housing stock is the most important long-term driver. According to NAHB analysis of American Community Survey data, the median owner-occupied home in the United States was 42 years old in 2024, up from 31 years in 2005, and about 47 percent of owner-occupied homes were built before 1980. Older homes need new roofs, windows, heating systems and kitchens, and many need upgrades for energy efficiency or to make them suitable for older residents who want to stay in their homes.

Rising costs of owning a home also play a role. The JCHS estimates that homeowner insurance premiums rose 72 percent between 2019 and 2025, to an average of 201 dollars a month, and property taxes 31 percent. Construction input prices rose about 40 percent between January 2020 and 2025, and lot values 52 percent between 2020 and 2024. These increases make remodeling more expensive too, but they make moving to a newly built home even more costly. Living costs more broadly are covered in our data on the US cost of living and the US inflation rate.

Insurance up most: homeowner insurance premiums rose 72 percent between 2019 and 2025, and lot values 52 percent between 2020 and 2024.

Outlook for remodeling

The remodeling market is expected to keep growing, but slowly. The JCHS projects only modest gains through mid 2027, as high interest rates make it expensive to finance large projects with home equity loans and as weaker home sales reduce the number of renovations that typically follow a purchase. Higher prices for lumber and other materials, covered in our data on US tariffs, add to the cost of projects. On the other hand, the age of the housing stock and the large amount of equity built up by homeowners provide a solid base for demand. With the country short of millions of homes, as shown in our report on the US housing shortage, keeping existing homes in good condition is also an important part of housing supply.

For contractors, remodeling offers steadier work than new construction, which swings more strongly with interest rates. Many of the specialty trades that build new homes, such as roofers, electricians and plumbers, earn a large share of their income from renovations. Their availability, and the labor shortages reported by builders, are covered in our report on home builder challenges.

Remodeling in numbers

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