North Carolina schools face nearly $18 billion in facilities needs over next five years

A new statewide survey identifies $9.8 billion in renovation needs, including more than $2 billion for HVAC systems, as aging infrastructure and rising construction costs strain school districts.

Nov. 5, 2026

4 min read

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Key Highlights

The 2025–26 survey estimates $17.96 billion in five-year facilities needs across North Carolina’s 115 traditional public school districts.
Renovations make up 54% of projected costs and have risen 77% since the previous survey.
Districts identified $6.16 billion in new school construction needs and $1.37 billion for additions to existing facilities.
Baseline construction estimates increased 40%, from $250 to $350 per square foot, and do not include future cost escalation.
The report projects a further $14.78 billion in facilities needs during years six through 10.

Aerial view of the North Carolina State legislature building with the state seal at the entrance.

A new report has revealed that North Carolina’s public schools are facing nearly $18 billion in facilities needs over the next five years—a 37% increase from the state’s previous assessment, underscoring the growing financial challenges districts face in maintaining, renovating, and replacing aging educational infrastructure. According to the 2025–26 Statewide K–12 Facility Needs Survey, released on Nov. 4 by the North Carolina Department of Public Instruction, the state’s 115 traditional public school districts reported approximately $17.96 billion in projected capital needs, compared with $13.07 billion in the 2020–21 survey.

The findings reflect a nationwide challenge facing school systems that’s forcing them to balance the cost of maintaining existing facilities with the need to modernize learning environments and accommodate changing student populations. For North Carolina districts, deferred maintenance and rising construction costs are contributing to a growing list of projects that will require significant capital investment.

Renovations account for more than half of projected needs

The survey identifies approximately $9.77 billion in renovations to existing school buildings, accounting for 54% of the total projected costs and representing a 77% increase from the $5.53 billion in renovation needs identified five years earlier. Renovation needs were reported at 1,416 schools across 93 districts, with building systems accounting for a substantial share of the anticipated spending.

Heating, ventilation, and air conditioning systems alone represent more than $2 billion of the projected costs. When plumbing and electrical improvements are added to that figure, however, the total climbs to approximately $2.9 billion, or 30% of all identified renovation needs.

Other significant renovation categories include $1.26 billion for building exterior improvements, including roofs and windows, and approximately $539 million for building code compliance and life safety improvements. Repairs and deferred maintenance were the most frequently cited justifications for proposed projects, accounting for 48% of the reasons identified by survey respondents. Building code and life safety issues, along with HVAC improvements and energy-saving initiatives, each accounted for approximately 16%.

New school construction adds $6.2 billion in needs

Beyond renovations, school districts in the Tar Heel State identified approximately $6.16 billion in new school construction needs, representing 34% of the five-year total.

The survey also includes 88 proposed new schools across 56 districts, while another $1.37 billion is projected for additions to existing facilities, with 127 schools reporting a need for expanded classroom or support spaces.

Why It Matters

North Carolina’s nearly $18 billion in projected school facilities needs illustrates a nationwide infrastructure challenge that’s increasingly affecting both district budgets and classroom instruction. The 2025 State of Our Schools report estimates an $85 billion annual funding gap for public school facilities nationwide. More recently, the U.S. Government Accountability Office found that 47% of school districts experienced chronic facilities problems during the 2024–25 school year, with building-related disruptions causing approximately 2 million students to miss school. Against that backdrop, North Carolina’s 77% increase in renovation needs highlights the urgency of addressing deteriorating HVAC systems, aging buildings, and deferred repairs before costs escalate further. For facilities leaders nationwide, the findings reinforce the importance of comprehensive building assessments, preventive maintenance, and sustained capital investment.

As is the case with school districts nationwide, the rising cost of construction is also contributing to the overall increase North Carolina is facing. The state’s baseline construction cost estimates rose from $250 per square foot in the previous survey to $350 per square foot in the latest assessment, representing a 40% increase. The report notes that its projections do not account for future construction cost escalation, supply chain disruptions, or tariff uncertainty, meaning actual project costs could be higher in the years ahead—adding another layer of complexity to facility planning.

Funding remains a central challenge

County governments across North Carolina are primarily responsible for funding public school construction and maintenance, although state lottery revenues provide additional support through several capital assistance programs.

Between July 2021 and June 2026, for example, the state appropriated approximately $2.83 billion for three lottery-supported school capital programs. During a separate reporting period, from January 2021 through December 2025, voters in eight counties approved nearly $5.88 billion in school construction bond authorizations.

Those historical funding figures illustrate the scale of capital investment already underway, but they don’t represent funding commitments against the newly identified $17.96 billion in future needs. The survey also excludes projects already under design or construction for which funding has been secured.

For education facilities leaders, the findings highlight the importance of comprehensive facility condition assessments, long-range capital planning, and preventive maintenance strategies. With renovation costs rising significantly faster than overall facilities needs, districts face increasingly difficult decisions about whether to repair, modernize, expand, or replace existing buildings.

The survey also projects an additional $14.78 billion in facilities needs during years six through 10, suggesting that North Carolina’s school infrastructure challenges will extend well beyond the current planning period.

Contributors:

Robert Nieminen

This piece was created with the help of generative AI tools and edited by our content team for clarity and accuracy.