The US redesign market continues to grow when the houses get older

Accordingly Improvement of the American apartment 2025A new report published on Wednesday by the Harvard Joint Center for Housing Studies (JCHS) was supported by the extraordinary strength of the US redesign market by the aging of houses and households and real estate values. Nevertheless, far more investments are required to satisfy the growing need for energy efficiency and disaster resilience of the 145 million houses in the country.

The report pointed out that the conversion market rose over $ 600 billion after the pandemic and, despite the recent softening, remains 50% above the pre-Pandemic level. Industry fragmentation, inflation and a lack of qualified trade, however, endanger the ability of the industry to fully satisfy demand.

Jchs listed five snack bars from the report:

1. TakeAway 1: Pandemy fuels for example. The improvement and repair expenses were obtained from $ 404 billion in 2019 to $ 611 billion in 2022 and are expected to remain over 600 billion dollars by 2025.
2. TakeAway 2: Climate change requires improvement spending and increases insurance premiums. The growing frequency and intensity of danger events such as hurricanes, forest fires and floods increased the expenses for disaster repairs in 2022–23 to 49 billion US dollars, which is an amazing leap from 2002 to 2003.
3. Takaway 3: The housing stock is older than ever and inferior conditions must be addressed. With an average age of 44 years in 2023, the housing stock is older than ever, and critical improvements are required to replace the aging components.
4. Takaway 4: The change in demography affects the renovation expenditure. The shift features of the US households continue to change activity and expenditure patterns in the redesign market.
5. Takaway 5: fragmentation, ascent costs and labor shortages hinder conversions. Despite a flood of mergers and acquisitions, the conversion industry still remains strongly fragmented with large stocks of independent and small salary accounting companies. The industry is also hindered by the high costs of building materials, including uncertainty on the potential effects of tariffs and labor shortages.

Chris Herbet, managing director of the center, added background and analysis, said:

“In view of the strong basis and the growing need, the conversion of the housing estate will probably remain an impressive economic sector in the coming years. Despite unprecedented expenses in recent years, more investments have been necessary to improve the energy efficiency, the resistance of the disasters and accessibility for the country's 145 million houses.”

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