According to a report by the Joint Center for Housing Studies of Harvard University, U.S. consumers are predicted to increase spending on home improvements and repairs again in 2025.
The data showed that annual expenditures for home renovation and maintenance will grow by 1.2% through the third quarter of 2025 amid a continued thaw in new home construction and sales of existing homes.
“Annual spending for home improvements and maintenance is projected to grow from $472 billion today to $477 billion through the third quarter of 2025,” said Abbe Will, associate director of the Remodeling Futures Program. “A quick return to growth after a fairly modest downturn ultimately means that residential remodeling and repair expenditures are expected to approach past peak levels moving forward.”
According to Property Casualty 360, a Nationwide survey showed many homeowners take on improvement projects without updating their insurance plans.
During the past two years, 51% of homeowners completed a major home renovation project, with 53% taking on projects typically reserved for experts, like kitchen remodels or even home additions.
At the same time, 48% of homeowners doing the work themselves rely on social media for project tips, while 55% completing major renovations have not adjusted their insurance policies, leaving themselves at risk of being underinsured.
