The Joint Center for Housing Studies of Harvard University found that the home remodeling market grew by more than 50% since the recession ended in 2009 to more than $424 billion. Nearly 70% of that market value is from homeowners making improvements or repairs to their own homes, as opposed to rental units.
[Related: New remodelers—Meet the homebuyers driving remodeling growth]
Myriad market forces are at work driving the increase in dollars spent on remodeling, according to the Joint Center’s “Improving America’s Housing 2019” report:
- Many homeowners had to delay regular maintenance or repairs during the recession. Now they’re investing in their homes again.
- Increasing housing prices are driving more people to purchase fixer-uppers and make repairs than to purchase new construction, especially younger people buying their first homes.
- People 55 and older, who represent a greater share of homeowners and wealthier people, are investing in upgrades that allow them to stay in their homes rather than downsize.
- More severe natural disasters around the country create an increased need for repairs and renovations following storms.