The U.S. home improvement industry is one of the largest and most resilient sectors of the American economy. Whether you're a homeowner planning a kitchen overhaul or a contractor building your business, understanding where the market stands—and where it's headed—is essential intelligence.
The U.S. home improvement market was valued at $594.5 billion in 2025 and is projected to grow from $613.8 billion in 2026 to $754.5 billion by 2033, at a compound annual growth rate (CAGR) of 3.0%.
This is not a niche industry. It is a foundational pillar of the U.S. economy, touching every licensed contractor, every big-box retailer, and every homeowner who has ever stared at a leaky faucet and decided enough is enough.
This article compiles the most important home improvement statistics for 2026 from authoritative sources—including the Harvard Joint Center for Housing Studies, the National Association of Realtors (NAR), Angi, IBISWorld, the Home Improvement Research Institute (HIRI), and the U.S. Census Bureau—to give both homeowners and service professionals the clearest possible picture of the industry today.
Explore our full statistics hub for more data-driven guides across the home services industry.
Market Size & Growth: The Big Picture
The U.S. home improvement market has undergone dramatic expansion over the past decade.
Home improvement and repair spending vaulted from $404 billion in 2019 to $611 billion in 2022, and is expected to remain above $600 billion through 2025.
That pandemic-era surge reshaped the market permanently—
the U.S. remodeling market soared above $600 billion in the wake of the pandemic and, despite recent softening, remains 50 percent above pre-pandemic levels.
The industry's independent research body, the Home Improvement Research Institute (HIRI), offers a slightly more conservative but highly granular picture.
The total home improvement market expanded by 3.7% to $574.3 billion in 2024, and in 2026 the total market is projected to grow by 3.5%—with the professional market growing by 2.7% and the consumer market growing by 3.9%.
Harvard's authoritative Leading Indicator of Remodeling Activity (LIRA), the benchmark tracker for owner-occupied home improvement spending, confirmed a fresh upward revision.
Harvard JCHS increased its projection for the remodeling market size in 2025 by $30 billion, or 6.4 percent, to $509 billion.
Meanwhile,
researchers at JCHS found that remodeling expenditures are expected to remain steady through mid-2026—rising modestly before leveling off—and the market is still on track to hit a record $524 billion in the near term.
Looking at the broader landscape,
Americans spent an estimated $603 billion on home remodeling projects in 2024, according to NAR and NARI's 2025 Remodeling Impact Report—a figure that underscores the sheer magnitude of homeowner investment even in a year when discretionary spending tightened.
Market Growth Trajectory: 2019–2033
Homeowner Spending Habits in 2025–2026
The data on individual homeowner behavior tells a nuanced story of resilience under financial pressure.
While overall home spending increased to an average of $12,472 in 2025, Millennials led all generations with an average spend of $14,199.
Households also completed more projects on average, rising from nine projects in 2024 to ten in 2025.
Despite that uptick, the year prior was leaner.
Homeowners spent an average of $12,050 on home projects in 2024, down from $13,667 in 2023.
Home improvements remained the largest spending category, with homeowners spending an average of $9,322, relatively flat compared to $9,542 in 2023.
The "renovate vs. relocate" dynamic is reshaping demand across the industry.
While total home project spending declined by 12% in 2024, 93% of homeowners planned projects in 2025; amid high interest rates and limited housing inventory, 67% of homeowners express a preference for renovating their current home rather than moving.
A significant 77% of surveyed Millennials say they plan to take on a major home project in the next five years—the highest of any generation.
Among homeowners planning large-scale projects over the next five years, the top choices are kitchen remodels (31%) and bathroom upgrades (28%).
The affordability stress signal should not be ignored. 61% of homeowners are concerned about being able to afford home maintenance or repairs in 2025, with this sense of concern being heightened among younger homeowners.Additionally, 54% of homeowners struggle to find qualified professionals, citing delays, higher costs, and limited availability.
The Professional Services Opportunity (For Contractors & Home Pros)
If you're a home service professional, the structural dynamics of this market are working in your favor.
Do-It-For-Me (DIFM) projects accounted for a market share of 85.8% in 2025, driven by strong consumer preference for professional renovation and repair services and the increasing complexity of home improvement projects.As of 2025, there are 726,026 remodeling businesses in the U.S., representing a 4.2% increase from 2024.
Yet demand is clearly outpacing supply:
"Demand for remodeling remains robust, with 42% of NARI members experiencing an increase in contracting projects and 57% observing larger project scopes over the past year," according to NARI President Jason Hensler.
The aging of America's housing stock is the single most powerful structural tailwind for the industry.
With a median age of 44 years in 2023, the housing stock is older than ever, and critical improvements are needed to replace aging components.
In 2023, average improvement spending for homes built before 1980 was 24% higher than spending on homes built since 2010, and maintenance spending was 76% higher.
The National Association of Home Builders documented that 61% of remodelers cited "system replacement" as their primary motivator for renovating—not aesthetics.
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Get Started Free →Project Mix: What Homeowners Are Actually Spending On
Homeowners remain focused on replacement projects such as roofing, windows, and HVAC, which accounted for 49% of improvement expenditures in 2023.
In 2023, homeowners also spent $139 billion on improvements impacting home energy use, nearly four times the amount spent in 2003.
The growing frequency and intensity of hazard events like hurricanes, wildfires, and flooding have increased spending for disaster repairs to $49 billion in 2022–2023, an astonishing leap from $16 billion in 2002–2003.
When consumers remodel their homes, the primary reasons include upgrading worn-out surfaces and materials (27%), improving energy efficiency (19%), desiring a change (18%), and preparing to sell within the next two years (18%).
Return on Investment by Project Type
Not all renovation dollars are created equal. Understanding ROI helps homeowners prioritize, and helps pros position their services.
According to the 2025 NAR/NARI Remodeling Impact Report, projects that received the highest Joy Scores—a 1-to-10 ranking based on homeowner happiness after completion—include the addition of a primary bedroom suite (10/10), a kitchen upgrade (10/10), and new roofing (10/10).
Following their remodeling projects, 64% of homeowners expressed a greater desire to be in their homes, while 46% reported increased enjoyment of their living spaces.
If cost were not a factor, 92% of consumers indicated they would choose to remodel additional areas of their homes.
The Cost vs. Value report—published annually by Zonda/JLC in partnership with Remodeling Magazine—is the industry's definitive financial benchmark.
A minor kitchen remodel (costing around $25,000) has an average ROI of 72–82%, while a major kitchen remodel ($50,000–$75,000+) carries a lower ROI of 50–60% due to diminishing returns on luxury upgrades.
For bathrooms, a minor budget remodel recoups approximately 70–85% of its cost upon resale, while a midrange bathroom remodel recoups approximately 74%, according to Cost vs. Value data.
ROI Benchmarks by Project Type
| Project | Approx. Cost Range | Estimated ROI | Source |
|---|---|---|---|
| Minor Kitchen Remodel | ~$25,000 | 72–82% | Zonda/JLC Cost vs. Value 2025 |
| Major Kitchen Remodel | $50,000–$75,000+ | 50–60% | Zonda/JLC Cost vs. Value 2025 |
| Midrange Bathroom Remodel | $15,000–$30,000 | ~74% | Zonda/JLC Cost vs. Value 2025 |
| Minor/Budget Bathroom Remodel | $2,500–$15,000 | 70–85% | Zonda/JLC Cost vs. Value 2025 |
| New Roofing | Varies | Top Realtor demand (43%) | NAR/NARI Remodeling Impact Report 2025 |
| Primary Bedroom Suite Addition | Varies | Joy Score: 10/10 | NAR/NARI Remodeling Impact Report 2025 |
The Generational Shift: Who's Actually Driving the Market
Angi's 2025 State of Home Spending Report reveals that Millennials have become the primary drivers of today's home projects economy, generating the highest total home spending per household of any generation—while not yet being the largest group of homeowners.
Baby Boomers led home spending in 2024, averaging $14,140. Millennials prioritized maintenance, spending $2,316 on upkeep—about $1,000 more than any other generation.
Future-focused budgeting also skews younger: 63% of homeowners aged 18–44 are actively saving for future projects, compared to just 49% of homeowners aged 65 and older.
On the older end of the spectrum, owners age 65 and over contributed 27% of total improvement outlays in 2023, up from just 14% two decades earlier.
1 in 4 homeowners is living in a multigenerational household—and these households are more likely to take on larger renovations and add lifestyle-enhancing features to their homes.Climate, Insurance & Disaster Resilience: An Emerging Cost Driver
One of the fastest-growing—and most underreported—segments of the home improvement market is climate-driven spending.
The growing frequency and intensity of hazard events increased spending for disaster repairs to $49 billion in 2022–2023, and the average homeowner insurance premium jumped 17% between 2021 and 2023—which may provide further motivation to invest in mitigation retrofits.
For contractors specializing in roofing, waterproofing, insulation, and emergency restoration, this represents a growing and recurring revenue stream that is structurally tied to long-term climate trends rather than economic cycles.
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How big is the U.S. home improvement market in 2026?
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Why are homeowners renovating instead of moving?
What is driving the long-term growth in home improvement spending?
For a deeper look at renovation cost benchmarks, see our companion guide: 2026 Home Renovation Cost Statistics. Ready to put your credentials in front of homeowners who are actively searching for verified pros? Join HomeProBadge today.