Hardware Retailing The Industry's Source for Insights and Information
The Harvard Joint Center for Housing Studies released its Improving America’s Housing 2025 report which found the remodeling market has been supported by the aging of homes and households and record-high property values.
“Given the strong foundation and growing needs, residential remodeling is expected to remain a formidable economic sector in the years ahead,” says Chris Herbert, managing director of the Center. “And despite unparalleled spending in the last few years, far more investment is needed to improve energy efficiency, disaster resilience and accessibility for the nation’s 145 million homes.”
Below are the top three takeaways from the Improving America’s Housing 2025 report independent home improvement retailers should know about.
The Pandemic Led to Record-Breaking Spending on Remodeling
In 2019, home improvement and repair spending jumped from $404 billion to $611 billion in 2022 and is expected to remain above $600 billion through 2025. Homeowners remain focused on replacement projects such as roofing, windows and HVAC, accounting for 49% of improvement expenditures in 2023, so retailers should focus on marketing these categories to gain part of the market share.
Climate Change Has Increased the Need for Improvement Spending
Disaster repairs from weather events like hurricanes, wildfires and floods increased to $49 billion in 2022-23 from $16 billion in 2002-2003. By stocking disaster items, independent retailers can support their communities and provide much-needed items during a hazard event.
The Housing Stock Is Older Than Ever
In 2023, average improvement spending for homes built before 1980 was 24% higher than spending on homes built since 2010, and maintenance spending was 76% higher. Home improvement retailers can curate their stock to make it easy for homeowners to find the items they need to maintain their homes.
