Every homeowner eventually learns the same hard lesson: your home will always cost more than you planned. Whether it's an emergency roof replacement after a storm, an HVAC system that decides to quit in July, or an ambitious kitchen remodel that spirals past budget, the financial reality of keeping a home in shape is relentless. The good news? Data can help you plan far better than guesswork. This deep-dive into the latest home repair statistics — drawn from authoritative sources including Harvard's Joint Center for Housing Studies, the FTC, Angi, Bankrate, Verisk, and HIRI — shows exactly where the money goes, where costs are rising fastest, and where homeowners are most vulnerable to financial surprise. Whether you're budgeting for routine maintenance, planning a major renovation, or trying to find a trustworthy contractor, these numbers belong on your radar in 2026.
The U.S. Home Repair & Improvement Market at a Glance
Harvard JCHS increased its projection for the remodeling market size in 2025 by $30 billion — or 6.4% — to $509 billion.
That headline figure covers improvements and repairs to owner-occupied homes tracked by the Leading Indicator of Remodeling Activity (LIRA). Zoom out to the full home improvement ecosystem — including products sold through retailers — and the numbers are even larger:
the total home improvement market expanded by 3.7% to $574.3 billion in 2024, with an additional 3.4% growth projected for 2025.
Looking further ahead,
in 2026, the total home improvement market is expected to reach $614.6 billion.
This isn't a niche sector.
The U.S. home improvement market was valued at $594.5 billion in 2025 and is projected to grow to $754.5 billion by 2033, driven by the increasing age of residential housing stock, rising homeowner expenditure, and a growing preference for upgrading existing properties instead of relocating.
How Much Are Homeowners Actually Spending?
The aggregate numbers are impressive. But what does this mean for your household budget?
In 2025, the average household spent $2,041 on maintenance and $1,143 on emergency repairs, according to Angi's State of Home Spending Report.
That's a deceptively modest-sounding baseline — but those are averages that mask enormous variance.
Millennials led all generations in spending, with an average total home spend of $14,199, including the highest maintenance ($2,601) and emergency ($1,519) expenditures.
All told, the typical single-family home costs over $21,000 annually to own and maintain, according to Bankrate's Hidden Cost of Homeownership Study.
That's a national average — costs range from near $12,600 a year in West Virginia to just under $34,600 in Hawaii.
In addition to their mortgage, the average American homeowner pays $24,529 per year in extra costs such as utilities, repairs, maintenance, property taxes, and homeowners insurance — almost as much as the typical mortgage payment of $26,508.
The Repair Cost Escalation Problem
Homeowners aren't just spending more — they're spending more than they expected, and repair costs are outpacing general inflation.
According to the Q1 2025 Verisk Remodel Index, the average cost of home repairs jumped 3.97% year-over-year — nearly 1% just since Q4 2024.
Verisk's index, which tracks over 10,000 repair and remodeling items in 430 markets nationwide, shows prices are now up more than 61% from Q1 2015 — and while CPI inflation rose just 2.4% over the same 12-month period, home repair costs have significantly outpaced it.
The standout cost surge came from vinyl window replacements, which climbed 2.51% in a single quarter. That category is 63% labor-based, highlighting the role that rising labor costs — now nearing 60% of total repair expenditures — play in the broader increase.
Other categories seeing sizable jumps include garage door replacements (+1.76%), tile flooring (+1.48%), and bathroom remodels (+1.32%).
The average cost for roof repair or maintenance is $1,471 — up nearly 30% from last year.
High-cost repairs include foundation repair (up to $8,129), roof replacement (up to $13,223), and septic system replacement (up to $12,000).
The Aging Housing Stock Problem
One of the biggest structural drivers of repair spending in 2026 is simply the age of America's homes.
With a median age of 44 years in 2023, the housing stock is older than ever, and critical improvements are needed to replace aging components.
Homeowners remain focused on replacement projects such as roofing, windows, and HVAC, accounting for 49% of improvement expenditures in 2023.
In 2023, average improvement spending for homes built before 1980 was 24% higher than spending on homes built since 2010, and maintenance spending was 76% higher.
Homes constructed before 1990 exhibit 30%–50% higher energy leakage than modern builds, compelling owners to retrofit windows, seal ductwork, and upgrade HVAC units.
The Surge in Unexpected Repairs
Perhaps the most jarring trend in recent homeowner data is how unprepared most owners are for repair bills.
Home repairs caught many homeowners off guard in 2024, with 83% facing unexpected issues — nearly double the 46% reported in 2023. The financial strain was significant, as nearly half (46%) spent more than $5,000 on repairs, up from 36% in the previous year.
Water damage, roof problems, and door or window issues topped the list of costly fixes. These unplanned expenses left 47% of homeowners feeling financially strained, underscoring the importance of preventative maintenance and planning.
80% of homeowners exceeded their home improvement budgets by at least $500 last year.
Nearly 1 in 4 homeowners (22%) say expenses related to maintenance and repairs are the most surprising cost of owning a home. Combined, these expenses reach nearly $12,000 annually, with owners reporting they're spending 39% more on maintenance and 52% more on renovations than the previous year.
What Homeowners Are Prioritizing in 2026
Despite budget pressures, homeowner activity remains strong — though the character of spending is shifting.
In 2025, about 48% of homeowners planned renovations, with median household spending expected to reach $15,000.
The Farnsworth Group's Quarterly Homeowner Activity Tracker for Q4-2024 shows that 72% of homeowners planned projects over the next three months, with home maintenance remaining the top priority for half of all homeowners.
To offset rising costs, 55% of homeowners aim to tackle more DIY maintenance projects, while 59% of respondents highlighted energy-efficient upgrades like smart thermostats and improved insulation as key goals.
In 2023, homeowners spent $139 billion on improvements impacting home energy use — nearly four times the amount spent in 2003.
According to Harvard JCHS, remodeling expenditures are expected to remain steady through mid-2026, and the market is on track to hit a record $524 billion early in 2026.
Project Type Breakdown: Where the Money Goes
| Project Category | Share of Improvement Spending | Key Trend |
|---|---|---|
| System replacements (HVAC, roofing, windows) | 49% of expenditures (2023) | Growing — driven by aging stock |
| Energy-related improvements | $139B total (2023) | 4x growth since 2003 |
| Disaster repairs | $49B (2022–2023) | 3x growth since 2002–2003 |
| Kitchen & bath remodeling | Top project category | Steady demand |
| Outdoor / landscaping | Strong DIY interest | ~56% of owners upgraded in 2021 |
Sources: Harvard JCHS Improving America's Housing 2025; Verisk Remodel Index Q1 2025; Angi State of Home Spending Report 2025
The Contractor Trust & Fraud Crisis
Finding a qualified, honest contractor is one of the most pressing challenges homeowners face. The data here is sobering.
In 2024, the Federal Trade Commission (FTC) received 81,925 reports of home improvement scams. These come at a high price to homeowners.
According to the Better Business Bureau (BBB), each scam costs homeowners an average of $1,800.
In late 2024 and throughout 2025, reports of contractor fraud, unfinished work, and insurance disputes continued to rise, according to data from the FTC, BBB, and state licensing boards.
Labor shortages lead some individuals to present themselves as qualified professionals without proper credentials, while other fraudsters collect a large down payment, start demolition, and vanish before finishing the job.
Rising costs equate to 71% of homeowners postponing a planned project this year, according to the Angi survey — creating a backlog that scammers and unqualified operators exploit.
The solution isn't just awareness — it's verified proof. Platforms like HomeProBadge help homeowners identify licensed, insured, and credentialed professionals before a single dollar changes hands. Explore more data on this topic in our home services statistics hub.
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Stop guessing. HomeProBadge makes it easy to confirm a contractor's license, insurance, and reputation before you hire.
Get Started Free →How Repair Costs Vary by Region
The South Atlantic region, still reeling from Hurricanes Helene and Milton, posted the highest annual increase at 4.72%. The Mountain and West North Central regions followed closely, both exceeding 4% annual growth in repair costs.
Homeownership costs range from near $12,600 a year in West Virginia to just under $34,600 in Hawaii.
Regional price gaps largely reflect labor rates and local demand. Top-wage states (HI, AK, MA, CA, DC) pay far above lower-cost states (MS, AR, AL, OK), with spreads exceeding 70% across some trades.
The Growing Remodeling Industry
As of 2025, there are 726,026 remodeling businesses in the U.S., representing a 4.2% increase from 2024.
Between 2020 and 2025, the number of remodeling businesses grew by 18.3%, adding approximately 111,800 new businesses over the five-year period.
Do-It-For-Me (DIFM) projects accounted for a market share of 85.8% in 2025, driven by increasing complexity of home improvement projects and the growing preference for professional execution.
In 2023, owners age 65 and over contributed 27% of total improvement outlays, up from 14% two decades earlier.
In 2026, the total market is projected to grow by 3.5%, with the market forecasted to reach approximately $688 billion by 2029.
Expert Outlook: What to Expect Through 2026
The Harvard JCHS LIRA projects that year-over-year spending for home renovation and repair will increase by 1.2% in 2025, supported by a solid labor market, rising home values, and continued improvement in existing home sales.
JCHS further projects that year-over-year spending on home renovation and repair will rise by 2.4% in early 2026 before easing to 1.9% in the third quarter of next year.
More than half of professional contractors, builders, and remodelers cited concerns about the price of materials at the end of 2024, seeing it as a challenge to future business growth.
For a deeper look at how renovation projects pencil out financially, see our companion article on home renovation cost statistics for 2026.
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