2025 Insights: Uncovering the Future Trends and Statistics in Home Improvement

Introduction

Home Improvement Industry Statistics: The home enhancement sector has experienced swift expansion over recent years, as homeowners are increasingly focused on improving their living environments. Improvements in homes, including renovations, refurbishments, repairs, and updates to older properties, both large and small, have gained traction. As property values rise, there is a growing emphasis on customizing living areas, prompting individuals to invest more in home upgrade projects.

Trends in energy-efficient enhancements, smart home innovations, and do-it-yourself solutions have also contributed to this surge. Various statistical insights reveal that billions of dollars are allocated annually for home improvement, rendering it a crucial sector within the economy. Whether involving kitchen renovations, creating outdoor areas, or undertaking simple repairs, the industry remains vibrant. This article delves into key statistics that emphasize the escalating demand and investment in home enhancements.

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• According to Home Improvement Industry Statistics, the home improvement market in the United States is projected to reach USD 544.6 billion by 2024.
• In the meantime, spending on home improvements rose by 81% between 2014 and 2023. However, it is expected to see a decline of USD 30 billion from 2023 to 2024.
• The average annual expenditure per household for home improvements was USD 24,000 in 2023, indicating a 60% increase since 2020.
• A forecasted 37.5% decrease in planned annual household expenditure is anticipated for 2024 compared to 2023.
• The U.S. home enhancement market is predicted to grow by an additional 10% from 2024 to 2027.
• Since 2019, the number of businesses in the U.S. remodeling sector has surged by 74%, representing about 350,000 new businesses over the past five years.
• The presence of women in the construction industry has risen by 60.5%, increasing from 802,000 in 2012 to 1.29 million in 2023.
• Projects enhancing curb appeal lead in return on investment (ROI) for 2024, with garage door replacements yielding a 193.9% return.
• Home improvement spending is projected to drop by 2.7% through the third quarter of 2024, marking the first downturn since 2010.
• In 2023, homeowners who engaged in home improvement projects completed an average of 2.8 renovations, with spending rising by 12% compared to previous years.
• The market for home improvement products is highly responsive to the health of the housing market. Elements such as elevated development and construction expenses heavily impact market dynamics.

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General Home Improvement Industry Statistics

• Consumer market sales are anticipated to expand by 3.2% in 2024, outpacing the growth of professional market sales.
• In 2023, 40% of homeowners undertook additional home improvements as a response to high interest rates, while in 2024, nearly 30% continued similar projects.
• Data from Angi indicates that 46% of homeowners utilized savings, 20% relied on credit cards, 7% opted for refinancing, and 5% preferred HELOC loans for home improvement expenditures.
• The Home Improvement Industry Statistics forecast that the professional sector will outpace the consumer sector in growth by 2025.
• The consumer market is set to grow at an average yearly rate of 3% from 2026 to 2028.
• During that timeframe, the professional market is expected to grow by approximately 5% annually.
• Projected consumer market expenditure is expected to achieve USD 441.2 billion by 2028, while the professional market may reach USD 213.3 billion.
• The Joint Center for Housing Studies at Harvard anticipates a drop in home improvement spending from USD 489 billion to USD 452 billion in the coming year.
• Current mortgage rates hover around 6% but are forecasted to decline in 2024 and 2025.
• In the first half of 2024, the leading retailers for home improvement market share are Home Depot (17.1%), Lowe’s (15.2%), contractors (10.3%), Amazon (6.4%), and Walmart (4.9%).

Popular Home Improvement Projects Statistics, 2024

• According to Home Improvement Industry Statistics, kitchen renovations are the most preferred among homeowners, with approximately 27% opting to upgrade their kitchens.
• Bathroom remodels are also prevalent, with 25% of homeowners renovating guest bathrooms and 23% concentrating on primary bathrooms.
• Meanwhile, around 30% are refreshing their interiors with new paint, and 27% are enhancing functionality by adding new appliances.
• Moreover, outdoor living areas are a focus for 33% of homeowners who wish to enhance their backyards for more enjoyment.

Home Improvement Service Market Statistics

(Source: shortpixel.ai)

• By 2033, the global home improvement services sector is anticipated to reach USD 652.3 billion.
• This is an increase from USD 402.9 billion in 2024, exhibiting an annual growth rate of 5.50% CAGR from 2024 to 2033.
• Further elaboration from the Home Improvement Industry Statistics indicates that the projected service market sizes include 2025 (USD 425.1 billion), 2026 (USD 448.4 billion), 2027 (USD 473.1 billion), 2028 (USD 499.1 billion), 2029 (USD 526.6 billion), 2030 (USD 555.5 billion), 2031 (USD 586.1 billion), and 2032 (USD 618.3 billion).

Home Improvement Industry Statistics by Category

(Source: cloudfront.com)

• In 2024, three categories generated the highest revenues for the home improvement sector.
• Major appliances, led by LG, accounted for 20%, with Lowe’s and Home Depot as the principal vendors.
• Lawn and garden products (14%, Scott’s) and home care items (14%, Trane) enjoyed popularity, primarily sold at Home Depot and Lowe’s.

By Category Sales Growth

• Home Improvement Industry Statistics for 2024 also reveal that online purchases of home improvement items have surged again, reaching an unprecedented level of nearly 29%.
• Conversely, about 22.3% of total expenditures on these products are now conducted online.
• Interestingly, while there has been a 1.6% increase in items bought online since 2020, the total spending share has slightly decreased by 0.1% compared to late 2020.

By Average Price Paid

(Reference: cloudfront.net)

• The average cost for online home improvement purchases has decreased from USD 237 in the first half of 2023 to USD 228 in 2024.
• In-store or retail purchases during the same timeframe tallied at USD 247.

U.S. Home Improvement Market Size Statistics

(Source: statista.com)

• A report analysis from Statista indicated that in 2023, sales for home enhancement in the U.S. amounted to approximately USD 544.6 billion and are expected to reach USD 549.2 billion by the end of 2024.
• This figure is forecasted to rise to USD 569 billion by 2025, with expectations of USD 585.5 billion in 2026 and USD 602.5 billion in 2027.

Statistics on Home Improvement by Total Expenditure

(Source: kbbonline.com)

• Statistics related to the home improvement sector indicate that total spending on home improvement services in the United States was approximately USD 13,667.
• Furthermore, the segmented expenditures included home improvement at USD 9,542, maintenance at USD 2,458, and Emergency at USD 1,667.

Alterations in Home Improvement Spending Statistics

(Source: statista.com)

• Per the Home Improvement Industry Statistics, 48% of Americans mentioned they could postpone purchasing home improvement products if a recession occurred in the United States.
• In contrast, for 2024, approximately 31% indicated they could readily cut it out, and 21% would continue to purchase at the same frequency.

Statistics on the Frequency of Home Renovations

(Source: statista.com)

Consumer Behavior Statistics in the Home Improvement Sector

• In Q1 2024, there was a 19% increase in home improvement spending compared to the same timeframe in 2023.
• The proportion of households intending to commence a home improvement project grew from 17% in Q1 2024 to 23% in Q2 2024.
• Amid economic uncertainties, consumers are prioritizing smaller, quicker home tasks and repairs.
• From January to April 2024, online sales in the home enhancement industry surged by 16%, driven by tools, machinery, and work apparel.
• Consumers are inclined to pay more for eco-friendly home improvement products.
• Sales in the professional market for home improvement are anticipated to climb by 5.0% in 2024, following a 2.6% downturn in 2023.

By Region

(Source: amazonaws.com)

• Home Improvement Industry Statistics indicated that by 2024, the North American home improvement sector will take the lead with a significant 35% share, aided by high homeownership rates and robust consumer expenditure.
• Europe follows with a 25% share, propelled by rising urbanization and increased disposable incomes.
• Other areas include Asia-Pacific, which contributes 23% of the market share; Latin America at 11%; and the Middle East and Africa contributing 7%.

Main Motivations for Home Improvement

Statistics on Top Home Improvement Retail Chains Based on Customer Satisfaction

(Source: statista.com)

• Statistics in the Home Improvement Industry reveal that Menards topped the list for customer satisfaction among U.S. home improvement outlets, achieving a score of 678 out of 1,000 points in 2024.
• Moreover, other chains that ranked high in customer satisfaction on a 1000-point scale were Ace Hardware (676), Study Average (665), The Home Depot (665), and Lowe’s (660).

Statistics on the Number of Stores by Leading Home Improvement Retailers

(Source: statista.com)

• In 2023, Ace Hardware operated 4,994 stores in the United States, while Home Depot had over 2,000 venues.
• At that time, the top hardware and home improvement retailers included The Home Depot (2,002), Lowe’s Companies (1,746), and Menards (337).

Statistics of Leading Home Improvement Retail Companies by Sales, 2024

Statistics on Sustainable Initiatives in the Home Improvement Sector 

• Industry professionals have noted an average reduction in operating costs by 13.5% in the first year after green retrofitting or renovation endeavors.
• In 2024, 45% of consumers in Europe showed interest in improving the sustainability of their homes.
• The global green
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  • The construction market grew to USD 260 billion in 2013, with around 20% of all new U.S. commercial property development being sustainable.
  • Green renovations in residential structures have shown potential annual reductions of nearly 1,700 kg of CO₂ emissions per household.
  • Global inquiries for “ethical online purchasing” surged by 600% in 2020, revealing a rising consumer inclination towards sustainable products in the home improvement arena.
  • Leading home enhancement retailers have been acknowledged for their initiatives in advocating energy-efficient merchandise and informing consumers.
  • Adopting sustainable building methods can drastically lower construction waste, which represents 34.7% of all waste in Europe, hence fostering environmental conservation.
  • Studies suggest that consumers are becoming increasingly open to investing in sustainable home enhancements.
  • Employing sustainable construction materials, such as repurposed metals and renewable plant-based substances.

  Conclusion

  The home enhancement sector is consistently expanding as homeowners are dedicating more resources to making their spaces both functional and stylish. With an increasing interest in eco-friendly materials, smart technologies, and customized designs, the market is evolving swiftly.

  Businesses that align with these evolving trends and provide high-quality products or services have substantial opportunities to prosper. Whether it involves remodeling kitchens, enhancing energy systems, or simply improving aesthetics, home improvement remains a field rich in potential. It’s all about crafting residences that genuinely embody the essence of home.

  How rapidly is the home improvement sector growing?

  The home improvement sector is expanding as individuals worldwide are gravitating towards improved living spaces, repairs, and contemporary designs.

  What are the current popular trends in home improvement?

  “Smart homes, energy efficiency, DIY undertakings, vibrant colors, open layouts, natural materials, and exterior enhancements.”

  Who are the key players in the home improvement industry?

  The major players in home improvement include Home Depot, Lowe’s, Ace Hardware, Menards, and IKEA.

  In what way can home upgrades enhance property value?

  Home enhancements increase property value by improving functionality, aesthetics, energy efficiency, and overall appeal.

  Are there financing solutions available for home improvements?

  Indeed, financing alternatives such as loans or credit are accessible for your home improvement endeavors.

  

  Joseph D’Souza

  Joseph D’Souza established Coolest Gadgets in 2005 to express his passion for technology gadgets. It has since evolved into a popular tech blog, known for detailed gadget reviews and insights on industry statistics. Joseph is dedicated to delivering clear, thoroughly researched content, making technology accessible for all. Coolest Gadgets is a reliable source for tech updates, appealing to both aficionados and newcomers alike.

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