The U.S. Federal Reserve—yes, that Fed—is currently in the middle of a $390 million renovation of its D.C. headquarters. And spoiler: it’s not going well. What started as a much-needed systems upgrade has turned into a multi-year saga filled with asbestos surprises, HVAC chaos, and ever-ballooning budgets.
But here’s the thing: this isn’t just a bureaucratic blunder. It’s relatable. Because the Fed is learning, like so many homeowners already know: modernizing something old is hard.
The Eccles Building isn’t unique. It’s just old—and built for a different time, with different needs, different materials, and different expectations. Sound familiar?
I’ve been reporting a lot recently on our aging home stock. More than half of U.S. homes were built before 1980. That means our kitchens are cramped, our wiring’s questionable, and our insulation… well, let’s just say it’s drafty at best.
The average American home wasn’t designed for open-concept living, high-speed internet, or dual home offices. And yet we expect these homes to adapt—to stretch, bend, and somehow keep up with the lives we now lead.
Retrofitting an old structure—be it a Capitol landmark or a 1970s split-level—always costs more than you think. Why? Because what’s behind the walls is almost always worse than expected.
The Fed Board says “unforeseen conditions” have caused price increases including higher levels of asbestos and contaminated soil. They also say there was a “higher-than-expected water table,” meaning the groundwater was closer to the surface than previously thought. Construction costs are 50% higher than initially estimated.
America’s housing stock is aging fast. And while demand grows for modern layouts, energy efficiency, and smart home tech, the reality is that most of our homes were never built to evolve this way.
We’re living in a remodel economy now—where adapting the old is often the only option. And like the Fed, we’re realizing that quick fixes won’t cut it. It takes strategy, vision, and a willingness to rethink what’s possible.
If the institution that controls the U.S. economy can get blindsided by a remodel, it’s okay if you do too.
Whether you’re reconfiguring a 1950s ranch or designing a new build from the ground up, the smartest renovations start with an honest look at the bones of a space—and a deep respect for what it takes to bring them into the future. Because modernizing anything old—homes, buildings, institutions—isn’t just about progress. It’s about persistence.
📸 TOP: a 75-year-old building gets a major update—inside and out. Photos by AP's J. Scott Applewhite and Andrew Harnik.
📸 BOTTOM: a renovation goes beyond a remodel, it's about preserving original craftsmanship, as seen in these interior photos by AP's Andrew Harnik.
