Improving America’s Housing 2025: What It Means for the Remodeling Industry and NARI Atlanta Members
Harvard University’s Improving America’s Housing 2025 is a comprehensive study emphasizing the current opportunities and challenges in the remodeling industry, illustrating why NARI members are increasingly essential.
Remodeling Market Spending Hits Historic Highs
The report opens with a bold statistic: U.S. homeowners and property managers spent over $600 billion on residential improvements and repairs in 2022, a level of investment projected to hold steady through 2025. This marks a dramatic rise in home remodeling activity, fueled by pandemic-era savings, increased time at home, and a surging desire to update or improve existing living spaces.
The market remains strong while growth has slowed slightly since that 2022 peak. Spending is expected to stabilize at around $608 billion in 2025—more than 50% higher than pre-pandemic levels. For remodeling professionals in Atlanta and across the country, this confirms what many of us already know: remodeling is no longer just a niche industry; it's a foundational pillar of residential real estate.
An Aging Housing Stock Means More Opportunity
Much of this spending is driven by the age of America’s homes. With a median age of 44 years, the U.S. housing stock is older than ever before. Older homes require frequent investments—new roofing, upgraded HVAC systems, electrical rewiring, and plumbing replacements. On average, homeowners living in homes built before 1980 spent 24% more on improvements and 76% more on maintenance compared to those living in newer homes.
This is an essential insight for remodeling professionals. As the homes around us age, demand for expert craftsmanship and trusted guidance will only increase. NARI members who specialize in structural improvements, systems upgrades, and whole-home renovations are particularly well-positioned to meet this growing need.
The Rise of Professional Remodeling
Another key trend the Harvard study highlights is the growing preference for professional remodeling over DIY. In 2023, over 84% of remodeling dollars were spent on professionally installed projects, up from 80% in 2021. Homeowners are leaning on trusted contractors for complex updates like kitchen remodels, HVAC installations, and energy retrofits.
This signals a significant opportunity for NARI members. Not only are homeowners investing more, but they’re placing a greater value on quality work, licensed professionals, and guaranteed results. NARI reputation and certification offer a critical edge in an increasingly competitive market.
Energy Efficiency and Climate Resilience Take Center Stage
Earth Day served as a timely backdrop for April’s NARI Nights, especially given the Harvard report’s strong emphasis on energy upgrades and disaster resiliency. In 2023, over $140 billion was spent on energy-related improvements such as new windows, better insulation, solar panels, and HVAC systems. Additionally, disaster repair spending hit $23 billion—more than double what was spent two decades earlier.
As energy costs rise and climate events become more frequent, homeowners are prioritizing investments that make their homes more efficient, comfortable, and resilient. The Inflation Reduction Act of 2022 has accelerated this trend, offering tax credits and rebates that make energy retrofits more accessible.
This is an important takeaway for our industry. Whether it's upgrading windows, installing heat pumps, or ensuring homes can withstand storms, sustainability is no longer optional—it's expected. NARI members who embrace green remodeling practices and stay up to date on incentive programs can become go-to resources in their communities.
Changing Demographics Shape the Market
Demographics also play a significant role in shaping the remodeling landscape. According to the report, homeowners aged 65 and over now account for 27% of all remodeling expenditures—nearly double their share two decades ago. This population is more likely to invest in accessibility improvements, routine maintenance, and upgrades that support aging in place.
At the same time, younger homeowners are entering the market with different priorities. While they may not have the same resources as older generations, they’re spending more than ever on exterior spaces, kitchen updates, and affordable DIY projects. NARI professionals who understand how to serve diverse demographics—whether offering ADA-compliant renovations or flexible project financing—will be best positioned for success in the years ahead.
Labor Shortages and Industry Fragmentation
One of the biggest challenges highlighted in the report is the persistent shortage of skilled labor. Nearly two-thirds of remodeling firms report difficulty hiring subcontractors such as electricians, carpenters, and HVAC technicians. Meanwhile, the industry remains highly fragmented, with the majority of firms operating as small businesses with under $500,000 in annual revenue.
This presents both a challenge and an opportunity. For established NARI members, it’s a chance to invest in workforce development, mentor younger tradespeople, and build partnerships that expand capacity. For the industry as a whole, it’s a call to action: we must invest in training, certification, and recruitment to build the skilled labor pipeline our growing market demands.
A Strong Future for Remodeling Professionals
The Improving America’s Housing 2025 report offers a clear message: the remodeling industry is strong, essential, and poised for continued growth. But seizing this moment requires collaboration, innovation, and professionalism—values that NARI Atlanta proudly upholds.