Nearly half (47%) of homes in the United States were built before 1980, according to NAHB data, and many need repairs to meet today's code and safety standards. This aging housing stock signals a strong future for the remodeling sector, especially with new home construction slowing as it faces headwinds from rising materials costs and persistent labor shortages.

The repairs necessary to keep older homes livable can be substantial and very costly for owners to complete. In 2023, nearly 6.45 million homes were classified as inadequate (5% of U.S. housing stock), with 1.65 million classified as severely inadequate. When repairs go unmade, homes can become unsafe for occupants and further reduce housing supply. The bipartisan 21st Century ROAD to Housing Act, which took effect in July, addresses these concerns  through the Whole-Homes Repairs Act, a provision to help achieve housing affordability nationwide by funding repairs to and modernization projects for existing homes.

Whole Home Repairs Act

The Whole-Home Repairs Act may have the largest impact on remodelers than that of any other provision in the housing package. It authorizes the U.S. Department of Housing and Urban Development to create a federal pilot program offering grants to eligible homeowners and loans to small landlords to address necessary repairs, health hazards, accessibility issues, and energy-efficiency concerns. The program should create a stronger pipeline of projects for remodelers across the country and activate renovation jobs that homeowners have put off for years.

Like many provisions of the new legislation, Congress will have to appropriate funding for the program, which will be disbursed to the states and then flow to county and city levels. Individuals will apply directly to their local government for funding to address whole-home repairs, aging-in-place improvements, and habitability issues, among other concerns, and then work with local industry professionals to complete the projects. Homeowners will be eligible for grants if they meet certain income requirements, and small landlords are eligible for potentially forgivable loans if they meet conditions like owning a certain number of affordable rental properties.

The Owner-Occupied Residential Rehabilitation Program in Jefferson Parish, La., is an example of how this type of program can work. Participants there apply for and are selected through a lottery system, and then the local government completes a home inspection and creates a scope of work for the project. Local industry professionals bid on the job, and the chosen contractor is paid for the work directly through the program.

Remodelers may have to educate both their local and state lawmakers about the Whole-Homes Repairs Act and monitor its implementation. The provision is approved and NAHB is watching developments on the federal level, but remodelers and other industry professionals can have a meaningful impact at the local and state levels by ensuring their policymakers understand its potential to help. 

It will take time to see the full effect of the 21st Century ROAD to Housing Act and the Whole-Homes Repairs Act, but they are part of a meaningful shift from Congress toward acknowledging how necessary the remodeling sector is to providing attainable housing across the country.