Remodeling Market Poised for Growth as the Age of Owner-Occupied Homes Increases

To kick off National Home Remodeling Month in May, which promotes the benefits of hiring a professional remodeler, the National Association of Home Builders (NAHB) has highlighted recent data from the American Community Survey (ACS) that shows almost half of the owner-occupied homes in the U.S. were built before 1980 and have a median age of 41 years. The aging housing stock, combined with insufficient new home inventory, indicates the remodeling market is poised for future growth.

The U.S. owner-occupied housing stock has aged rapidly, particularly since the Great Recession, as ACS data analyzed by NAHB shows that around 48% of the housing stock dates back to the 1980s and earlier. The median age of owner-occupied homes climbed to 41 years in 2023, up from 31 years in 2005.

“The aging housing stock continues to drive remodeling projects as home owners 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, a remodeler from Raleigh, N.C. “In fact, NAHB is forecasting residential remodeling activity to post a 5% gain in 2025, and a nominal gain of 3% in 2026.”

From 2020 to 2023, new construction added nearly 2.6 million owner-occupied homes, accounting for only 3% of total owner-occupied housing stock. Relatively newer homes built between 2010 and 2019 took up around 9% of the stock, while homes constructed between 2000 and 2009 made up 15%. In contrast, around 48% of the owner-occupied homes were built before 1980, including around 35% built before 1970.

The share of relatively newer owner-occupied homes (those built within the past 13 years) has declined greatly, from 18% in 2013 to only 12% in 2023. Meanwhile, the share of older homes that are at least 44 years old has increased significantly, rising from 39% in 2013 to 48% in 2023.

“No matter the renovation project, NAHB remodeler members are dedicated to maintaining the highest standards of professionalism and supporting home owners in bringing their dream homes to life,” said Goolsby Morrison.

As home owners continue to invest in updating their homes, remodelers can promote the value in working with highly skilled professionals to complete these projects using NAHB’s National Home Remodeling Month Toolkit. It provides resources that remodelers can use to build local media campaigns that help elevate the industry. Consumers will find tips on how to choose a professional remodeler and where to locate them in their area.

National Home Remodeling Month is sponsored by Westlake Royal Building Products.