Harvard Joint Center for Housing Studies

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Improving America's Housing 2025

The US remodeling market soared above $600 billion in the wake of the pandemic and remains 50 percent above pre-pandemic levels. Nonetheless, industry fragmentation, inflation, and a shortage of skilled trade labor jeopardize the ability of the industry to meet demand. Overcoming these obstacles will be critical for modernizing and preserving the housing stock and far more investment is needed to improve energy efficiency and disaster resilience for the country's 145 million homes.

Rising Costs of Homeownership Are a Growing Burden

Housing affordability is a growing concern for homeowners. While high home prices and mortgage interest rates have forced first-time buyers to stretch their budgets, longtime homeowners are increasingly burdened by rising costs for home insurance, property taxes, utilities and routine maintenance of their homes. The greatest burdens are being shouldered by those with the lowest incomes, many of whom are older adults on fixed incomes or single-person and single-parent households relying on a single income. With costs of homeownership rising and the number of households with burdens growing, demand for programs offering financial support will be necessary to keep homeowners safely and securely housed. 

Rental Deserts, Segregation, and Zoning

Restrictive zoning and NIMBY attitudes have left nearly a third of neighborhoods across the United States with few options for renters. We examine the characteristics of these rental deserts, defined as neighborhoods where rental units make up less than 20% of the housing stock, and argue that uneven geographies of rental opportunities bolster patterns of socioeconomic and racial segregation because renters are disproportionately lower-income and people of color.

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