The remodeling market appears poised for future growth, according to the National Association of Home Builders (NAHB).
The association highlights recent data from the American Community Survey, which shows that nearly half of the owner-occupied homes in the U.S. were built before 1980 and have a median age of 41 years, up from 31 years in 2005.
This aging housing stock, combined with a limited number of new homes on the market, indicates that a remodeling boom could be approaching.
NAHB estimates that from 2020 to 2023, new construction added nearly 2.6 million owner-occupied homes, accounting for 3% of total owner-occupied housing stock. Homes built between 2010 and 2019 account for about 9% of the stock, while homes constructed between 2000 and 2009 make up about 15% of owner-occupied homes.
In contrast, about 48% of owner-occupied homes were built before 1980, including about 35% that were built before 1970. The share of older homes that are at least 44 years old has increased significantly in recent years, rising from 39% in 2013 to 48% in 2023.
“The aging housing stock continues to drive remodeling projects as homeowners are increasingly choosing to tap into their home equity and invest in improvements rather than relocate, creating long-term growth prospects for the industry,” said NAHB Remodelers Chair Nicole Goolsby Morrison in a press release. “In fact, NAHB is forecasting residential remodeling activity to post a 5% gain in 2025, and a nominal gain of 3% in 2026.”
