WASHINGTON — The U.S. restoration and remediation industry is projected to exceed $210 billion in revenue in 2026, according to IBISWorld market research, driven by an increase in climate-related disasters, aging housing stock, and growing awareness of the health risks associated with mold and indoor air quality.
The industry has grown at a compound annual rate of approximately 6 percent over the past five years, outpacing the broader construction sector. Water damage restoration remains the largest segment, accounting for approximately 45 percent of total industry revenue, followed by fire and smoke restoration at 25 percent and mold remediation at 15 percent.
Climate change is the primary driver of industry growth, as more frequent and severe hurricanes, flooding events, wildfires, and winter storms generate a steady increase in demand for restoration services. The National Oceanic and Atmospheric Administration reported 28 weather and climate disasters with losses exceeding $1 billion each in 2025.
The aging U.S. housing stock is also contributing to industry growth. The median age of owner-occupied homes in the United States is now 40 years, and older homes are more vulnerable to water damage from failing plumbing, roof deterioration, and foundation issues.
Industry analysts project continued growth through 2030, with the restoration industry expected to reach $280 billion in annual revenue by the end of the decade. The primary risk to the growth forecast is a significant reduction in insurance coverage availability in high-risk markets, which could reduce the funded demand for restoration services.
