Forbes predicts the “Great Renovation” from 2025 to 2035 will transform America’s residential landscape, as 50 million homes change hands, driving over $3 trillion in renovation needs. Fueled by aging housing stock, low new construction rates, and a wave of older homeowners selling, this movement presents immense opportunities for real estate professionals, home service companies, and innovative, eco-friendly, and smart home solutions to thrive.
Forbes talks about the dawn of the Great Renovation, a transformative decade set to redefine America’s residential landscape from 2025 to 2035. This movement isn’t a fleeting trend but a profound shift where 50 million homes will change hands, requiring over three trillion dollars in renovations. It’s an immense opportunity for homeowners, real estate pros, and home service companies to shine by rejuvenating America’s aging housing stock.
I started out building houses in high school and turned that love into renovating houses and neighborhoods in Northeast Ohio. I then combined a second passion, technology, with my real estate expertise to help investors nationwide increase their profits with less effort. For the past 20 years, I’ve been driven to share my knowledge and help others achieve similar successes. In this article, I aim to provide insights and strategies to help you navigate the world of property renovation with confidence, creativity and, most of all, purpose.
The Three Pillars Fueling The Renovation Wave
• Aging Housing Stock: America’s homes display evolving styles and needs. This aging infrastructure poses challenges but opens up incredible renovation opportunities.
• Decimated Development: Post-Great Recession, new home construction nosedived. From 2000 to 2009, approximately 15 million new homes were built, but only 6.9 million in the following decade, necessitating renovations.
• Aging Homeowners: Older homeowners are expected to sell, relocate or pass on their properties, driving renovation needs. In 2023, the homeownership rate was highest among Americans in their early 70s, with approximately 81% of people aged 70 to 75 owning their home.
These pillars highlight the need for comprehensive renovations that address structural and aesthetic demands while catering to evolving homeowner needs. Expect eco-friendly practices, smart home trends and modern design to dominate this renovation era.
New Data Insights From LIRA
Recent data from the Leading Indicator of Remodeling Activity (LIRA) projects a decline in home improvement spending by “over 7 percent in the third quarter of this year, easing to -2.6 percent through early 2025.” Despite this, the remodeling sector remains robust, with spending expected to stay near record levels. Carlos MartÃn from the Remodeling Futures Program notes that stabilizing material costs and a rebounding housing market will benefit residential remodeling. Abbe Will adds that the downturn will be modest and short-lived.
LIRA’s insights help navigate the Great Renovation, ensuring a strong long-term outlook driven by the need to update and modernize America’s aging homes.
The Call To Action
The Great Renovation presents massive opportunities for various sectors of the real estate and home services industry. Collaboration across these sectors can amplify their potential, creating a cycle of opportunity and growth.
Working together, these professionals can transform the renovation landscape by offering holistic solutions and making the process smoother and more integrated. Success in this era will hinge on innovation, adaptability and partnership, not just in design but also in sustainability and efficiency. There’s a golden opportunity to integrate eco-friendly practices and smart home technologies, enhancing long-term value and appeal.
Navigating The Future Landscape Together
As the Great Renovation unfolds, it will reshape homes and lives, driven by aging housing, demographic shifts and cross-industry collaboration. Businesses can thrive by forming strategic partnerships that complement their strengths, boosting innovation and efficiency. Start by identifying your business’ needs and potential partners who can fill those gaps. Joint solutions, like a construction firm partnering with a tech company for smart home installations, can create more value for clients and stand out in the market. Whether partnering or staying independent, adaptability and innovation are crucial to staying competitive and seizing new opportunities in this evolving landscape.
