U.S. Home Remodeling Market Introduction

The U.S. home remodeling market refers to the industry involved in renovating, repairing, and improving existing homes in the United States. This can include a wide range of projects, such as kitchen and bathroom renovations, home additions, roof and window replacements, and landscaping, among others. The market is driven by various factors, including changes in consumer preferences, aging housing stock, and economic conditions. Homeowners often undertake remodeling projects to increase the value of their homes, improve energy efficiency, enhance functionality, and achieve aesthetic upgrades. The U.S. home remodeling market is a significant contributor to the overall construction industry, with millions of homes undergoing renovation and improvement projects every year.

U.S. Home Remodeling Market Size

The U.S. home remodeling market is a significant and growing sector of the construction industry. Spending on home improvements and repairs in the United States reached a record high of $424 billion in 2020, a 3% increase from the previous year.The report also notes that the COVID-19 pandemic has spurred a surge in home remodeling activity, as homeowners are spending more time at home and are investing in upgrades and renovations to improve their living spaces. The report projects that spending on home remodeling and repairs will continue to increase in the coming years, with a forecasted growth rate of 3.8% in 2021.In terms of specific areas of home remodeling, the report notes that the largest share of spending is typically on kitchen and bathroom renovations, followed by exterior replacements and additions such as roofing and siding, and interior replacements such as flooring and plumbing. The report also highlights a growing trend towards energy-efficient home upgrades, such as the installation of solar panels or smart thermostats.Overall, the U.S. home remodeling market is a significant and growing sector of the construction industry, with a strong outlook for future growth driven by factors such as the COVID-19 pandemic, changing consumer preferences, and a focus on energy efficiency.

U.S. Home Remodeling Market Share

The U.S. home remodeling market reached a record high of $425 billion in 2017, and has continued to grow since then. The COVID-19 pandemic has also fueled growth in the home remodeling market as homeowners spent more time at home and prioritized home improvement projects.In terms of market share, the home improvement retailer segment is a major player in the U.S. home remodeling market. Home Depot and Lowe's, the two largest home improvement retailers in the U.S., dominate the market with a combined market share of around 40%. Other major players in the U.S. home remodeling market include general contractors, specialized trade contractors, and building material suppliers.In recent years, the home remodeling market has also seen the emergence of new players such as online home improvement platforms and digital marketplaces, which are disrupting traditional business models and offering new ways for homeowners to connect with contractors and source building materials.Overall, the U.S. home remodeling market is highly competitive and fragmented, with a large number of players operating in various segments of the market. However, the home improvement retailer segment remains a dominant force in the market.

U.S. Home Remodeling Market Trends

There are several key trends currently shaping the U.S. home remodeling market:

Outdoor living spaces: With more people spending time at home due to the COVID-19 pandemic, there has been a surge in demand for outdoor living spaces such as patios, decks, and outdoor kitchens. Homeowners are investing in upgrades and renovations to create functional and comfortable outdoor spaces for relaxing and entertaining.Energy-efficient upgrades: A growing number of homeowners are prioritizing energy-efficient upgrades such as insulation, energy-efficient windows, and smart thermostats. These upgrades not only help to reduce energy costs but also increase the overall value of the home.Smart home technology: The integration of smart home technology is becoming increasingly popular in home remodeling projects. Homeowners are investing in upgrades such as smart lighting systems, voice-activated assistants, and home automation systems to improve comfort and convenience in their homes.Aging-in-place upgrades: As the population ages, there is a growing demand for home upgrades that allow homeowners to age in place. These upgrades include features such as grab bars, wider doorways, and barrier-free showers, which make homes more accessible and functional for aging homeowners.Sustainable materials: Homeowners are increasingly seeking out sustainable and eco-friendly building materials for their home remodeling projects. This includes materials such as bamboo flooring, recycled glass countertops, and reclaimed wood.Overall, the U.S. home remodeling market is being driven by a combination of factors such as changing consumer preferences, the COVID-19 pandemic, and a focus on sustainability and energy efficiency. These trends are expected to continue to shape the market in the coming years.

U.S. Home Remodeling Market Driving Factors

Several factors drive the U.S. home remodeling market, including:

Economic conditions: Economic growth and low unemployment rates tend to stimulate home remodeling activity, as homeowners feel more confident about investing in their homes.Aging housing stock: The U.S. has a large inventory of older homes, many of which require maintenance and upgrades. As these homes age, homeowners are increasingly likely to undertake remodeling projects.Changing consumer preferences: As lifestyles and design trends evolve, homeowners may undertake remodeling projects to update their homes to reflect their changing needs and tastes.Energy efficiency: Rising energy costs and concerns about the environment have led to increased demand for energy-efficient home upgrades, such as insulation, windows, and HVAC systems.Home values: Many homeowners undertake remodeling projects to increase the value of their homes, particularly in competitive real estate markets.COVID-19 pandemic: The pandemic has led to increased demand for home office spaces, outdoor living areas, and other home improvements as homeowners spend more time at home.Availability of financing: The availability of financing options, such as home equity loans and lines of credit, can make it easier for homeowners to fund remodeling projects.Overall, the U.S. home remodeling market is driven by a complex set of factors, including economic conditions, changing consumer preferences, and technological advances, among others. As these factors continue to evolve, the home remodeling industry is likely to remain a dynamic and growing segment of the U.S. construction market.

U.S. Home Remodeling Market Regional Analysis

The U.S. home remodeling market varies regionally, with certain areas experiencing higher levels of activity and spending than others.The West and South regions of the United States typically see the highest levels of spending on home improvements and repairs. In 2020, the West region accounted for 31% of total spending, followed by the South region at 30%. The Midwest and Northeast regions accounted for 21% and 18% of total spending, respectively.Within these regions, there are also variations in the types of remodeling projects that are most popular. For example, in the South, the most common projects are exterior replacements and additions such as roofing and siding, while in the West, kitchen and bathroom renovations are the most popular.In addition, the level of spending on home remodeling projects can also vary depending on local economic conditions, housing markets, and demographic factors. For example, areas with higher home values and incomes may see higher levels of spending on luxury upgrades and high-end finishes, while areas with older housing stock may see more spending on repairs and maintenance.Overall, the U.S. home remodeling market is influenced by regional variations in spending, consumer preferences, and local economic conditions. Understanding these regional trends can be important for businesses operating in the home remodeling industry, as they can help to identify opportunities for growth and tailor marketing strategies to specific regions.

U.S. Home Remodeling Market Forecasts 2030 

The U.S. home remodeling market is expected to continue to grow in the coming years. The U.S. home remodeling market is projected to reach a value of $665 billion by 2030, growing at a compound annual growth rate (CAGR) of 4.5% during the forecast period.Several factors are expected to drive this growth, including increasing demand for energy-efficient upgrades, rising home values, and the ongoing trend toward home improvement projects during the COVID-19 pandemic. Additionally, technological advances and innovations in the home remodeling industry, such as smart home technology and sustainable building materials, are likely to continue to drive growth in the market.However, the U.S. home remodeling market may face challenges such as a shortage of skilled labor and rising material costs, which could potentially slow down growth in the coming years. Additionally, economic conditions and government policies may also impact the growth of the market.Overall, the U.S. home remodeling market is expected to remain a significant and growing segment of the construction industry in the coming years, driven by changing consumer preferences, technological advances, and economic conditions.

U.S. Home Remodeling Market Key Industry Players

The U.S. home remodeling market is a highly fragmented industry with a large number of players operating in various sectors of the market. Some of the key industry players include:Home Depot: Home Depot is one of the largest home improvement retailers in the United States, offering a wide range of products and services for home remodeling projects.Lowe's: Lowe's is another major home improvement retailer that offers a variety of products and services for home remodeling, including appliances, flooring, and kitchen and bath products.Masco Corporation: Masco Corporation is a leading manufacturer of home improvement products, including faucets, cabinets, and building materials.Sherwin-Williams: Sherwin-Williams is a manufacturer and retailer of paint and coatings, which are commonly used in home remodeling projects.Kohler: Kohler is a manufacturer of plumbing products and fixtures, including sinks, toilets, and shower systems.Pella: Pella is a manufacturer of windows and doors, which are frequently replaced in home remodeling projects.Mohawk Industries: Mohawk Industries is a leading manufacturer of flooring products, including carpet, hardwood, and tile.Owens Corning: Owens Corning is a manufacturer of insulation and roofing products, which are commonly used in home remodeling projects.Overall, these and other key players in the U.S. home remodeling industry play a significant role in shaping the market through their products, services, and marketing strategies.