30+ Home Improvement Industry Statistics [2023]: Trends, Spending, And Growth - Zippia (2024)

Research Summary. It’s no secret that the home improvement industry has been thriving since the COVID-19 pandemic, thanks to its customers spending significantly more time at home. Here are some statistics about the home improvement industry:

• Americans spent $538 billion at home improvement stores in 2021.

• 59% of U.S. homes were built before 1980.

• 76% of American homeowners did a home improvement project in 2020.

• The U.S. remodeling industry earned $1.1 billion in revenue in 2021.

• The U.S. home remodeling industry is expected to see a CAGR of 4.1% from 2021 to 2027.

For further analysis, we broke down the data in the following ways:
Trends and Projections | Consumer Spending | Types of Projects | Consumer Behavior | Home Improvement Companies

General Home Improvement Industry Statistics

• 92% of homes in the U.S. were built before the year 2000.

• The global home improvement market is worth $763 billion as of 2020.

• Between 2020 and 2027, the global home improvement industry is expected to have a CAGR of over 4%, resulting in a market value of over $1 trillion by 2027.

Home Improvement Industry Trends and Projections

• The size of the U.S. home improvement market has increased from $269.9 billion in 2010 to $537.9 billion in 2021.

  After a dip in size of about $30 billion from 2008 to 2009, the market has been steadily expanding each year. The biggest jump came from 2019 to 2020, however, when the market grew by over $90 billion in just one year ($406.6 billion to $497.1 billion).

• The U.S. home remodeling industry is expected to see a 4.1% CAGR between 2021 and 2027.

  This growth is due to several factors, including the growing popularity of smart home technology and the increasing number of rental home landlords who are improving their properties to meet growing demand.

• On average, homeowners completed one more home improvement project in 2021 than they did in 2020.

  In 2020, homeowners who did home improvement projects worked on an average of 2.7 projects, and in 2021, they did an average of 3.7 projects, each of which cost an average of $2,800.

Home Improvement Industry Statistics by Consumer Spending

• 8% of American homeowners planned to spend over $10,000 on home improvement projects in 2021.

• 14% of American homeowners are expected to spend between $5,000 and $10,000 on home improvement projects in 2021.

• As of 2018, the average homeowner spends $7,560 a year on home improvement.

• In 2021, the average amount homeowners spent on home improvement was $10,341, up by 25% from the year before.

• A typical remodeling project will improve a home’s resale value by an average of 56% of the cost of the remodel – however, this percentage can be significantly higher or lower depending on the project.

Home Improvement Industry Statistics by Types of Projects

• 84% of homeowners intend to complete a home improvement project related to heating and cooling in 2022.

  Whether homeowners are worried about hot Florida summers or frigid Minnesota winters, many are looking to tweak and improve their heating and cooling systems this year.

• 35% of homeowners planned to complete yard or landscape projects in 2021.

  31% said the same about bathroom projects, while 27% intended to upgrade their kitchens, and 26% were planning bedroom projects. 25% were expecting to work on their deck or patio, and 16% had plans for their home offices.

• The average cost of a minor kitchen remodel is $22,500 as of 2019.

  A major remodel runs closer to $66,200 on average, and for those who hire a professional designer, a project will cost between $48,000 and $90,000. Keep in mind that these are pre-pandemic prices, and the cost of labor and materials has only gone up since then.

• The percentage of homeowners who upgraded their outdoor spaces went from 56% in 2019 to 57% in 2020.

  Outdoor upgrades have seen a steady increase in popularity since 2018. Here is a breakdown of the percentage of homeowners who made each type of home renovation each year from 2015 to 2020:

  	2015	2016	2017	2018	2019	2020
  Interior Room Remodels	72%	72%	72%	72%	70%	68%
  Home System Upgrades	61%	62%	64%	65%	62%	61%
  Outdoor Upgrades	54%	53%	53%	50%	56%	57%
  Home Exterior Upgrades	58%	57%	59%	59%	57%	56%
  Additions	9%	9%	9%	8%	8%	8%

  

• 35% of people painted their home’s interior walls in 2020.

  This was the most popular home project that year in the U.S., followed by bathroom remodels and new floor installations.

• Of the homeowners who completed home renovation projects in 2020, 44% said they did it that year because they’d wanted to do the project all along and finally had the time to do it.

  36% said that they’d wanted to do it all along and just now had the money to do it, while 22% completed projects because they wanted to customize their new home, and 18% did it to adapt to recent lifestyle changes.

  Just 20% completed home improvement projects to address damage, and 10% were trying to increase their home’s value because they were planning to sell it soon.

  

  See Also

  Home Improvement Industry Statistics, Trends & Analysis [2024]Topic: DIY and home improvement in the U.S.

• The most popular home improvement projects in 2021 were painting home interiors, remodeling bathrooms, and installing smart home devices.

  More specifically, 32% of homeowners who completed home improvement projects painted their home’s interior, 28% remodeled a bathroom, and 27% installed smart devices.

  

Home Improvement Industry Statistics by Consumer Behavior

• 91% of homeowners report that their home needs either minor or major renovations.

• 76% of U.S. survey respondents said they completed at least one home improvement project during the COVID-19 pandemic in 2020.

• 52% of homeowners who completed home improvement projects in 2020 were Baby Boomers.

• Members of Generation X made up 32% of homeowners who completed home improvement projects in 2020.

• 12% of U.S. homeowners who renovated their homes in 2020 were Millennials.

• 50% of homeowners plan to do their home improvement projects themselves.

• 56% of homeowners said they intended to hire a professional to complete all or part of their home improvement projects in 2021.

Home Improvement Industry Statistics by Home Improvement Companies

• Home Depot, Lowe’s Home Improvement, and Ferguson are the three largest home improvement companies in the U.S. by revenue.

  Here is the breakdown of each company and its respective annual revenue:

  Top Home Improvement Companies in U.S. and Its Annual Revenue

  Company	Annual Revenue
  Home Depot	$153 billion
  Lowe’s Home Improvement	$96 billion
  Ferguson	$36 billion

  Sherwin Williams, Tractor Supply Co., and ABC Supply follow these three in size.

• There are 588,806 remodeling businesses in the U.S. as of 2023.

  This is an increase of 2.6% from the number of remodeling businesses that existed in 2022, and the number of these businesses has grown an average of 2.6% each year from 2018 to 2023.

  

• U.S. home improvement sales reached $538 billion In 2021.

  This amount is expected to continue to grow, reaching over $620 billion by 2025.

Home Improvement Industry Statistics FAQ

1. How big is the home improvement industry?

   The global home improvement industry is worth $763 billion, and the U.S. home improvement industry is worth $537.9 billion. These numbers are from 2020 and 2021, respectively, so they can’t be directly compared, but it is still clear that the U.S. home improvement industry is a significant player in the global industry.

   Worldwide, the home improvement industry is expected to see a CAGR of 4% from 2020 to 2027, which would result in a value of more than $1 trillion by 2027.

   In the U.S., the home improvement market has seen a steady growth from 2009 on, but its value jumped dramatically by over $90 billion from 2019 to 2020. This took it from a value of $406.6 billion in 2019 to $497.1 billion in 2020.

2. Is the home improvement industry growing?

   Yes, the home improvement industry is growing. Even just from the number of remodeling businesses in the U.S., it’s evident the industry is growing rapidly, as the number of these businesses has increased by an average of 3.8% each year from 2017 to 2022.

   The U.S. also saw home improvement sales reached $538 billion in 2021, and this number is expected to reach $620 billion by 2025.

   All of this growth is reflected in the fact that the U.S. home improvement industry as a whole grew by more than $90 billion from 2019 to 2020, and it’s expected to continue to grow.

   This isn’t limited to just the U.S. either, as experts estimate the global home improvement industry will grow by a CAGR of 4% from 2020 to 2027, which means it will likely go from a value of $763 billion in 2020 to nearly $1 trillion by 2027.

3. How often do Americans renovate their homes?

   Americans renovate their homes about every three to five years. This is especially true if you consider painting a room a home renovation. It’s common for Americans to do minor changes like this every few years, whether it’s for upkeep or aesthetic purposes.

   Bigger renovations are less common, but of people who have lived in their homes for at least six years, 61% will choose to renovate their current home instead of moving.

   Others won’t touch their homes for ten or more years, while some like to complete major updates to different parts of their houses every year – it just depends on preference, time, and money. Those who are qualified to do the work themselves may make significant changes more often as well.

4. How many home improvement contractors are there in the U.S.?

   There are more than 6,200 home improvement contractors in the U.S. These professionals are paid to complete home improvement jobs for clients, whether those are for repair and maintenance or for design updates.

   The majority (74.6%) of home improvement contractors are men, and the average annual salary of someone in this position is $35,233. However, some in this field earn up to $63,000 a year.

   Detroit, Michigan, and New York City, New York, have the greatest number of home improvement contractors in the U.S.

5. What is trending in home improvement?

   Smart home device installation is trending in home improvement. The most popular home improvement projects in 2021 were interior painting projects, bathroom remodels, and smart home device installations.

   While interior painting and bathroom remodeling regularly make the list of most popular home improvement projects, this is the first year that smart home device installations made the top three list.

   In addition, projects that improve outdoor spaces are also trending, as 35% of homeowners intend to complete one of these projects in 2021.

   This is also one of the only project categories (others are interior room remodels, home system upgrades, home exterior upgrades, and additions) that have seen a continuous uptick in popularity from 2015 to 2020.

6. Why is the home improvement industry growing?

   The home improvement industry is growing in large part because of the COVID-19 pandemic. During the COVID-19 pandemic, people found themselves spending far more time at home than they usually would, which gave them the perfect opportunity to complete some home improvement projects.

   Many also suddenly had the money they needed to do these projects thanks to deferred vacations, government stimulus checks, or even unexpected increases in home equity.

   Even though not everyone had the cash to complete their dream renovations, many still completed necessary home repair projects or projects that would allow them to accommodate lifestyle or health changes caused by the pandemic.

Conclusion

During 2020, the peak of the COVID-19 pandemic lockdowns, 76% of American homeowners completed home improvement projects. This boosted the home improvement industry’s value by about $90 billion in just one year, and the growth didn’t slow down much in 2021, as Americans spent $538 billion at home improvement stores that year.

Globally, the home improvement industry is thriving as well, as it had a value of $763 billion in 2020 and an expected CAGR of 4% from 2020 to 2027, resulting in an estimated market value of over $1 trillion by 2027.

As far as what U.S. homeowners are doing to renovate their homes, 35% painted their homes’ interior walls in 2020, and this type of project stayed at the top of the list in 2021 as well.

References

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