Aging Homes Boost Renovation Activity
As U.S. homes age, owners are investing more in updates and repairs, creating opportunities to improve value and extend a home’s lifespan.
NEW YORK — The Harvard Joint Center for Housing Studies reports that the median age of a home in the United States is 44 years, and, for many owners, routine upkeep is becoming more costly.
Most of these homes are in need of major repairs for modernization and maintenance. The Federal Reserve Bank of Philadelphia found that between 2022 and 2024, structural repair costs have increased by 14.1%, with plumbing alone increasing by 23.6%. Those increased costs are partly due to labor expenses and the cost of individual parts, as well as the larger scope of many home repairs.
“Financial advisers traditionally suggested setting aside 1% of a home’s value annually for upkeep, but many now argue that isn’t enough. While 1% may cover routine upkeep, 2% to 3% provides a more realistic cushion for expected maintenance, home-improvement projects and unexpected repairs, particularly for older homes,” Angie Hicks, co-founder of home-services company Angi, told the Wall Street Journal.
Harvard’s Remodeling Futures Program found 49% of all home improvement spending is for necessary repairs or replacements that can’t be delayed.
“In 2023, homeowners in the U.S. spent an average of $9,030 on replacement projects such as windows, up 59% from 2009 after adjusting for inflation,” Rachel Drew, director of Harvard’s Remodeling Futures Program, told the Wall Street Journal.
Source: Wall Street Journal (04/04/26) Dagher, Veronica
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