Summarize this article with:
Your next renovation just got more expensive.
Home improvement statistics reveal that homeowner spending reached record highs in recent years, with average renovation costs climbing faster than most budgets can handle. The data from sources like the Joint Center for Housing Studies and National Association of Home Builders shows a market that’s anything but predictable.
Understanding these numbers matters. Whether you’re planning a kitchen remodel or just trying to figure out if that bathroom upgrade will actually boost your property value, the statistics tell you what’s really happening in the remodeling industry.
This breakdown covers spending patterns, project costs, ROI data, and the trends shaping residential construction. You’ll see what homeowners actually pay for renovations (not what contractors initially quote), which improvements deliver the best returns, and where the home improvement market is headed next.
Market Size and Growth
Overall Market Performance
- Total home improvement market reached $574.3 billion in 2024 and is projected to grow 3.4% to $593.8 billion in 2025 (Fixr.com)
- Market expected to reach $614.6 billion in 2026 (Fixr.com)
- U.S. home improvement market predicted to reach approximately $688 billion by 2029 (Fixr.com)
- Projected total home improvement sales in the U.S. for 2025: $569 billion (Statista)
- Year-over-year spending for home renovation and repair projected to increase 1.2% in 2025 (Joint Center for Housing Studies)
- Market size projection increased by $30 billion (6.4%) to $509 billion for 2025 (Joint Center for Housing Studies)
- Home improvement spending expected to increase by $9 billion between Q4 2024 and end of 2025 (Fixr.com)
Historical Growth
- Home improvement market size surged 69.61% from 2015 to 2024 (Fixr.com)
- Spending on homeowner improvements and repairs surged 82% from 2015 to 2024 (Fixr.com)
- Americans spent $603 billion on renovations in 2024, up $183 billion from 2020 (National Association of Realtors)
- Home improvement spending grew 25.3% in 2022 and 2023 combined (Joint Center for Housing Studies)
- Only decrease in market between 2015-2024 was $21.5 billion drop between 2022 and 2023 (Fixr.com)
Business Growth
- 726,026 remodeling businesses operating in the U.S. as of 2025, representing 4.2% increase from 2024 (Fixr.com)
- Number of remodeling businesses grew 18.3% between 2020 and 2025, adding approximately 111,800 new businesses (Fixr.com)
- Women in construction increased 45%, growing from 929,000 in 2015 to 1.34 million in 2024 (Fixr.com)
Retail and Store Statistics
- Home improvement stores industry revenue estimated at $292.8 billion in 2025, growing at 1.7% CAGR over past five years (IBISWorld)
- Revenue expected to grow 1.9% in 2025 alone (IBISWorld)
- U.S. home center sales: $338 billion (Statista)
- U.S. hardware store sales: $68.6 billion (Statista)
- 75% of homeowners shop at big-box retailers like Home Depot, Lowe’s, and Menards (The Farnsworth Group)
DIY Market Specifics
- DIY home improvement market valued at $805.8 billion in 2025, expected to reach $1,180 billion by 2035 (Business Research Insights)
- DIY market expected to reach $870 million in 2025 and grow at 6.16% CAGR to reach $1.17 trillion by 2030 (Mordor Intelligence)
- Home improvement/DIY stores held 72.36% revenue share in 2024 (Mordor Intelligence)
- Online pure-play retail registers highest forecast CAGR of 9.19% during 2025-2030 (Mordor Intelligence)
- Online transactions now account for 29% of all DIY purchases (Mordor Intelligence)
- Spending on DIY remodeling projects reached record high of $66 billion in 2021 (ConsumerAffairs)
Average Home Improvement Costs by Room (2025)
Project costs vary significantly based on room type and scope. Here’s what homeowners can expect to spend on the most popular renovation projects.
| Room Type | Budget Range | Average Cost | ROI % |
|---|---|---|---|
| Half Bathroom (~30 sq ft) |
$1,500 – $15,000 | $8,250 | 70-75% |
| Guest Bathroom (~80 sq ft) |
$5,600 – $20,000 | $12,800 | 73-80% |
| Primary Bathroom (~120 sq ft) |
$8,400 – $30,000 | $19,200 | 70-75% |
| Kitchen (Minor) Surface updates |
$10,000 – $25,000 | $17,500 | 85-96% |
| Kitchen (Major) Full renovation |
$25,000 – $150,000 | $87,500 | 40-49% |
| Basement Finishing Full conversion |
$15,000 – $50,000 | $32,500 | 60-75% |
| HVAC Replacement Full system |
$5,000 – $12,500 | $7,500 | 80-100% |
Source: This Old House, Angi, Journal of Light Construction, Renovation Costs Guide 2025
Homeowner Spending Patterns
Median and Average Spending
- Median annual spending per household on home improvement reached $24,000 in 2023, 60% higher than 2020’s $15,000 (Fixr.com)
- Planned household spending decreased 16.7% in 2024 to $20,000 (Fixr.com)
- Median household spending projected to drop to $15,000 in 2025, returning to 2020 levels (Fixr.com)
- Overall median household spending on renovations increased 33.3% from 2020 through 2024 (Fixr.com)
- Average bathroom remodel costs $6,456-$24,715 for spaces measuring 40-150 square feet (This Old House)
- Most homeowners spend between $6,639 and $17,622 on bathroom projects, with national average at $12,121 (Cabinets City)
- Homeowners spent an average of 37 DIY hours on home improvement in Q4 2024 (The Farnsworth Group)
- Home improvement spending peaked to about $4,700 per homeowner in Q4 2024 (The Farnsworth Group)
Project Frequency and Types
- 48% (nearly 50%) of homeowners plan to remodel in 2025 (This Old House, Fixr.com)
- More than 80% of those planning to remodel will do so in spring and summer 2025 (This Old House)
- 55% of homeowners reported renovating part of their home in 2021 (Today’s Homeowner)
- Over 50% of homeowners tackled DIY projects in each quarter of 2024 (The Farnsworth Group)
- Additional one-in-five homeowners completed projects through combination of DIY and contractor help (The Farnsworth Group)
- 55% of homeowners plan to take on more DIY projects in 2025 due to unexpected repair costs (Hippo Housepower Report)
- 83% of homeowners faced unexpected repairs in 2024, nearly double the rate from 2023 (Hippo Housepower Report)
- 46% of homeowners spent over $5,000 on unexpected repairs in 2024 (Hippo Housepower Report)
Spending by Project Size
- Bulk of projects Americans undertake are small scale (under $5,000) (iProperty Management)
- Most homeowners spent between $5,000 and $10,000 improving their homes in 2018 (iProperty Management)
- 25% of homeowners spent between $10,000 and $25,000 on projects in 2018 (iProperty Management)
- 70% of homeowners in 2024 feel it is a “good time” to start projects under $5,000 (PGM Solutions)
- About two-thirds of homeowners feel it’s a bad time to start projects costing more than $5,000 (PGM Solutions)
Payment Methods
- 66% plan to use checking or savings account funds (This Old House)
- 30% plan to use credit card (This Old House)
- 17% plan to use personal loan (This Old House)
- 68% of millennials, 67% of baby boomers, 65% of Gen Z, and 62% of Gen X plan to use checking/savings (This Old House)
- One-third of homeowners had to save over time to afford desired improvements (HousingWire)
- 27% scaled back renovation plans due to rising costs (HousingWire)
- 20% plan to tackle projects themselves to save money (HousingWire)
Key Generational Differences
| Category | Younger Gens (Z & Millennials) | Older Gens (X & Boomers) |
|---|---|---|
| Primary Motivation | Personal style, learning new skills, experience-based decisions | Necessary repairs, maintenance, upkeep |
| DIY Preference | 73% of millennials are DIYers; cost-driven | More likely to hire professionals; only 15% of budget on DIY |
| Research Methods | Online ads, YouTube (80% Gen Z), social media (39% millennials on Facebook) | In-store browsing (50% baby boomers), friends/family recommendations |
| Top Priority | Sustainability (25% Gen Z cite as important), smart home tech | Quality, durability, long-term value |
| Buyer Status | Millennials 38% of buyers; 82% prefer fixer-uppers | Gen X 24% of buyers; established homeowners renovating |
Source: The Farnsworth Group, HIRI, National Association of Realtors, Bank of America, Watercress Group 2025
Renovation Motivations and Priorities
Primary Reasons for Renovating
- 50% renovate to improve appearance of living space (This Old House)
- 49% renovate to make repairs (This Old House)
- 27% want to replace surfaces showing signs of wear (Real Estate News)
- 19% aim to improve energy efficiency (Real Estate News)
- 18% felt it was “time for a change” (Real Estate News)
- 18% plan to sell their home within two years (Real Estate News)
- 89% said housing affordability did not influence their decision to renovate (National Association of Realtors)
- Only 4% said most important result was improving home’s quality for eventual resale (Real Estate News)
- 41% of homeowners renovating in 2025 aim to increase home value (Hippo Housepower Report)
- 93% of homeowners felt they had better quality of life after finishing renovations (Today’s Homeowner)
- 69% of homeowners feel major sense of accomplishment after completing their project (Today’s Homeowner)
2025 Priorities
- 56% of experts say homeowners prioritize outdoor living and backyard upgrades more than in past (Fixr.com)
- 59% of homeowners indicated energy efficiency and sustainability were top priorities in 2024 (Hippo Housepower Report)
- Smart home technology is top DIY upgrade for 59% of homeowners (Hippo Housepower Report)
- 67% of homeowners prefer renovating current home rather than moving (Angi)
Home Improvement Activity by Generation (2025)
Different generations approach home renovations with distinct priorities, spending patterns, and project preferences. Understanding these differences helps explain current market trends.
| Generation | Planning to Renovate | Avg. Annual Spend | Avg. Projects/Year |
|---|---|---|---|
| Gen Z Born 1997-2012 |
56% | $8,500 – $11,000 | 10 |
| Millennials Born 1981-1996 |
60% | $12,101 | 9.3 |
| Gen X Born 1965-1980 |
50% | $10,500 – $11,200 | 7-8 |
| Baby Boomers Born 1946-1964 |
32% | $14,140 | 5-6 |
Source: This Old House Survey, Newsweek, HIRI, Fortune 2025
Most Popular Projects and Rooms
Top Remodeling Projects
- Roofing, kitchen remodeling, HVAC, and bathroom remodeling are top spending categories (Fixr.com)
- Bathrooms and kitchens are most common spaces homeowners plan to renovate (This Old House)
- Flooring, cosmetic upgrades, and new wallpaper/paint are most common projects planned for 2025 (This Old House)
- 38% of all renovations focus on kitchen remodels (Advance Design Studio)
- 26% of homeowners opt to update bathrooms (Advance Design Studio)
- 20% of renovations focus on enhancing outdoor living spaces (Advance Design Studio)
- 17% of homeowners plan home additions like guest suites or multi-generational living spaces (Advance Design Studio)
- 14% of all home improvements dedicated to energy-efficient upgrades (Advance Design Studio)
- 11% of homeowners turn to storage solutions like finished basements or attic conversions (Advance Design Studio)
Specific Project Statistics
- 55% of Gen X and baby boomers, 54% of millennials, and 49% of Gen Z plan to remodel bathrooms in 2025 (This Old House)
- 33% of Gen X and 23% of baby boomers prioritize outside deck, porch, or patio (This Old House)
- 27% renovated bathroom, 23% kitchen, 20% living room, 18% primary bedroom, 8% basement (Today’s Homeowner)
- Two-thirds of homeowners (66%) address special needs during bathroom remodels (PGM Solutions)
- Over one-third of home improvement projects are DIY, such as interior painting (iProperty Management)
- One in three homeowners had to complete emergency improvement in 2018, averaging $1,206 (iProperty Management)
Highest Return on Investment Projects (2025)
Not all home improvements deliver equal returns. These exterior and interior upgrades offer the best value when it’s time to sell.
| Project Type | Average Cost | Value Added | ROI |
|---|---|---|---|
| Garage Door Replacement | $2,355 – $4,513 | $4,430 – $8,751 | 194% |
| Steel Entry Door | $2,000 – $3,500 | Full cost recovery | 188% |
| Energy-Efficient Windows | $8,000 – $15,000 | $5,800 – $10,800 | 95-105% |
| Minor Kitchen Remodel | $15,000 – $25,000 | $14,400 – $24,000 | 96% |
| Closet Renovation | $3,000 – $8,000 | $2,490 – $6,640 | 83% |
| Fiberglass Front Door | $3,500 – $5,000 | $2,800 – $4,000 | 80% |
| Mid-Range Bathroom | $12,000 – $25,000 | $8,840 – $20,000 | 73-80% |
| Major Kitchen Remodel | $85,000+ | $32,000 – $42,000 | 38-49% |
Source: Fixr.com, West Shore Home, National Association of Realtors, Journal of Light Construction 2025
Return on Investment (ROI)
Highest ROI Projects
- Garage door replacement: 193.9% ROI (Fixr.com), 194% ROI (West Shore Home)
- Steel entry door replacement: 188% ROI, 100% cost recovery (West Shore Home, National Association of Realtors)
- Refinishing hardwood floors and installing new wood flooring have highest ROI (This Old House)
- Closet renovation: 83% cost recovery (National Association of Realtors)
- Fiberglass front door: 80% cost recovery (Real Estate News)
- Energy-efficient window upgrades: 72.3% ROI (BHHS Caliber Realty)
- Mid-range bathroom remodel: 73.7%-80% ROI (This Old House, Journal of Light Construction)
- Minor kitchen renovations: 96% ROI (Gallery KBNY)
- Major kitchen remodel: 49% ROI (but still significant) (Gallery KBNY)
Projects with Lower or Variable Returns
- High-end bathroom renovations average $78,840 with 45% ROI (WA Construct)
- Energy upgrades (heat pump conversions, window replacements) often recouped 95-105% (AH Lend)
- 98% of industry professionals say updated outdoor living space has big impact on home value (Fixr.com)
Joy Score and Satisfaction
- Primary bedroom suite addition earned perfect 10 Joy Score (National Association of Realtors)
- Kitchen upgrade earned perfect 10 Joy Score (National Association of Realtors)
- New roofing earned perfect 10 Joy Score (National Association of Realtors)
- Homeowners feel most joy when painting their home out of all interior projects (Today’s Homeowner)
DIY Participation Statistics
| Metric | Percentage | Details |
|---|---|---|
| Homeowners Doing DIY | 75%+ | Over 50% tackle projects each quarter |
| Cost as Primary Motivation | 73% | Homeowners feel it’s cheaper to DIY |
| YouTube as Learning Tool | 43-80% | Gen Z 80%, Millennials 51%, Gen X 61% |
| Millennials Who Are DIYers | 73% | Most DIY-active generation |
| Average DIY Spending (Q4 2024) | $4,700 | Plus 37 hours of labor invested |
Source: The Farnsworth Group, Business Research Insights, Southern California News Group 2025
Project Costs by Type
Bathroom Remodeling Costs
- Average cost: $12,115, with most projects ranging from $6,639 to $30,000 (Angi)
- Minor remodels: $2,500-$10,000 or $3,000-$10,000 (various sources)
- Major remodels: $10,000-$30,000 (Renovation Costs Guide)
- Mid-range bathroom remodel: $25,251 in 2025 (Journal of Light Construction via Bath Calculator)
- Luxury renovations: Can reach $78,840 or surpass $100,000 (This Old House)
- Half bathroom (30 sq ft): $1,500-$15,000 (Angi)
- Guest bathroom (80 sq ft): $5,600-$20,000 or $6,456-$15,920 (Angi, This Old House)
- Primary bathroom (120 sq ft): $8,400-$30,000 or $10,148-$24,715 (Cabinets City, This Old House)
- Cost per square foot: $70-$250 (Angi)
- Plumbing work typically costs $5,545 on average for bathroom renovation (This Old House)
- Complete shower remodel costs $8,044 including materials and labor (This Old House)
Kitchen Remodeling Costs
- Average kitchen remodel cost in 2024: Between $25,000 and $150,000 (PGM Solutions)
- Kitchen remodels are top spending category along with bathrooms (multiple sources)
- Whole home remodels, kitchens, and basements are three top project categories (Qualified Remodeler)
Other Project Costs
- Average cost to paint interior of house: $2,014, ranging between $967-$3,075 (Renovation Costs Guide)
- HVAC system replacement: $7,500 average, ranging from $5,000-$12,500 (Renovation Costs Guide)
- Installing solar panels: Costs dropped by more than 70% over last decade (Ecowatch)
- Flooring replacement in standard-sized living room: $12.50 per square foot, or $1,500-$4,800 (This Old House)
DIY vs. Professional Services: Cost & Time Breakdown
Deciding between DIY and hiring a pro? Here’s how popular projects compare in cost, time, and expertise required.
| Project | DIY Cost | Professional Cost | Savings |
|---|---|---|---|
| Interior Painting One room |
$200 – $400 Materials only |
$800 – $1,500 Full service |
60-75% |
| Bathroom Remodel Basic updates |
$3,000 – $8,000 High effort |
$12,000 – $25,000 Licensed pros |
50-68% |
| Flooring Installation Living room |
$1,500 – $3,000 Tools + materials |
$3,500 – $6,500 Installed |
53-57% |
| Deck Building 12×16 composite |
$4,500 – $7,000 Weekend project |
$8,500 – $14,000 Complete build |
47-50% |
| Kitchen Backsplash Tile installation |
$600 – $1,200 Tile + tools |
$1,800 – $3,500 Professional |
65-67% |
Source: Angi, This Old House, The Farnsworth Group 2025
Regional Variations
Most Expensive Cities/States
- California tops list for bathroom renovation expenses (Bath Calculator)
- Eight California cities rank among top ten most expensive locations (Bath Calculator)
- Silicon Valley (Sunnyvale) contractors average $37.01/hour (Bath Calculator)
- New York City primary bathroom renovation: $60,000-$85,000 (Bath Calculator)
- NYC average home remodel: $52,565 (Bath Calculator)
- Honolulu ranks third nationwide for renovation costs at $41,903 (Bath Calculator)
- Naperville stands out as America’s most expensive city for remodeling at $100,975 for five main rooms (Bath Calculator)
- Chicago area bathroom renovations: $16,500-$37,500 (Bath Calculator)
- Most densely populated and metropolitan areas spend closer to $18,000 (iProperty Management)
States Taking Most Home Improvement Loans
- Top five states: Utah, Idaho, Rhode Island, New Hampshire, and Oregon (Fixr.com)
DIY Statistics and Trends
DIY Participation and Preferences
- 73% of homeowners choose DIY projects to save costs (The Farnsworth Group)
- 62% undertake DIY projects for personal satisfaction (Business Research Insights)
- Over 75% of homeowners engage in DIY projects (Business Research Insights)
- 43% use YouTube as primary resource for DIY projects (Business Research Insights)
- 60% of people started DIY home improvement project in 2022 (Today’s Homeowner)
- 60% of homeowners did not use contractor for remodeling projects in 2022 (Today’s Homeowner)
- About 73% of millennials are DIYers (Watercress Group)
DIY Spending and Time
- Homeowners spend average of 37 DIY hours on home improvement in Q4 2024 (The Farnsworth Group)
- DIY spending peaked to about $4,700 in Q4 2024 (The Farnsworth Group)
- Older homeowners only spend 15% of their home improvement budgets on DIY projects (Today’s Homeowner)
- American DIYers typically spent $2,000-$5,000 on their largest DIY project (PGM Solutions)
- Lumberyard sales for DIY remodels reached almost $138 billion (Today’s Homeowner)
DIY Brand Loyalty and Research
- DIYers generally not loyal to home improvement brands except Heavy DIYers (The Farnsworth Group)
- 86% of Heavy DIYers, 76% of Medium DIYers, 65% of Light DIYers say high quality is reason to continue using same brand (The Farnsworth Group)
- About 70% of DIYers compare prices, 57% check availability, 55% read product reviews before purchasing (The Farnsworth Group)
- 56% of Gen X and 62% of millennials do “good amount” or “a lot” of research before purchasing (The Farnsworth Group)
- 90% of new movers willing to try new companies for any services (PGM Solutions)
DIY Learning Sources
- Gen Z and millennials: Online ads are primary source for learning about brands (The Farnsworth Group)
- Nearly half of baby boomers make discoveries in-store at brick-and-mortar locations (The Farnsworth Group)
- 80% of Gen Z DIYers use YouTube, 61% of Gen X, 51% of millennials (The Farnsworth Group)
- 39% of millennials use Facebook for home improvement research, 26% use Instagram (Southern California News Group)
- Only 9% and 2% of baby boomers use Facebook and Instagram respectively (Southern California News Group)
- 33% of baby boomers don’t use social media at all for this purpose (The Farnsworth Group)
Generational Differences
Renovation Plans by Generation (2025)
- 60% of millennial homeowners plan to renovate in 2025 (This Old House, Fortune)
- 56% of Gen Z homeowners have renovation plans (This Old House, Fortune)
- 50% of Gen X homeowners plan renovations (This Old House)
- Only 32% of baby boomers plan to renovate (This Old House, Fortune)
- Millennials led all generations in renovation plans (This Old House)
Homeownership and Buyer Statistics
- Millennials comprised 38% of homebuyers in 2024 (National Association of Realtors via HIRI)
- Gen Xers contributed 24% of homebuyers (National Association of Realtors via HIRI)
- 82% of millennials say they’re most likely to buy fixer-upper home than newly built one (Bank of America)
- 74% of millennials have mortgage, highest rate of any generation (Watercress Group)
- 81% of millennials tackled home improvement project since March 2020 (OnePoll/Bernzomatic)
Spending by Generation
- Baby boomers invested average of $14,140 in home projects in 2024 (Newsweek)
- Millennials spent average of $12,101 in 2024 (Newsweek)
- Gen Xers spend about 12.6% less than millennials (HIRI)
- Baby boomers spend approximately 20.5% less than Gen X (HIRI)
- Millennials spend about 51% more than Gen X in median spending (HIRI)
- Gen Z conducted highest number of projects, averaging 10 per homeowner in 2024 (Newsweek)
- Millennials averaged 9.3 projects in 2024 (Newsweek)
Generational Motivations and Preferences
- Gen Z and millennials more likely to renovate for personal style (Fortune)
- Baby boomers more likely to focus on upkeep and necessary repairs (Fortune)
- Millennials largely motivated by experiencing new things and learning new skills (Home Improvement Research Institute)
- Quality and price are approximately three times more influential than other factors for all generations (HIRI)
- 1 in 4 Gen Z DIYers cite sustainability and environmentally friendly qualities as important (The Farnsworth Group)
- 17% of Heavy DIYers list sustainability as reason to continue using same brand (The Farnsworth Group)
- Gen Z DIYers more interested in mobile apps and rewards programs from manufacturers (The Farnsworth Group)
Top Projects by Generation
- Millennials: Painting (41%), kitchen remodeling (39%), redecorating (37%), landscaping (34%), bathroom (PGM Solutions)
- 52% of millennials who started projects within six months mainly completed smaller projects like painting and landscaping (Bank of America)
Social Media Usage by Generation
- 39% of young homeowners engage social media vs 23% for Gen X, 9% for baby boomers/Silent Generation (HIRI)
- YouTube is dominant platform for younger generations (HIRI)
- Baby boomers most likely to visit local home improvement stores and rely on recommendations from friends/family (HIRI)
Sustainability and Energy Efficiency
Energy Efficiency Priorities
- 59% of homeowners indicated energy efficiency and sustainability were top priorities in 2024 (Hippo Housepower Report)
- 14% of all home improvements dedicated to energy-efficient upgrades including solar panels, windows, insulation, eco-friendly appliances (Advance Design Studio)
- About 30% of homeowners are aware and concerned about their home’s environmental and energy performance (The Farnsworth Group)
- Over 50% of real estate agents found clients express interest in sustainability when purchasing (Today’s Homeowner)
- 30% of buyers say heating, cooling, windows, doors, and siding are important (Today’s Homeowner)
- 24% of buyers want energy-efficiency lighting (Today’s Homeowner)
- Residential energy use accounts for 20% of greenhouse gas emissions in U.S. (Today’s Homeowner)
- Residential sector accounts for about 21% of total energy consumption in U.S. (Today’s Homeowner)
Sustainable Upgrades and Features
- Common reasons for green home improvements: Save money on bills and be environmentally conscious (Rated People via Extenda Retail)
- Properly insulated home and attic can save 10-50% on energy bill (U.S. Department of Energy)
- LED lights use up to 90% less energy than regular bulbs, saving average customer about $225 per year (Ecowatch)
- WaterSense features showed up in almost 300% more listings in 2025 than previous year (Realtor.com)
- Average households can save $130 annually on water bills by switching to WaterSense-certified toilets (House Digest)
- WaterSense along with Energy Star appliances can trim water waste and costs by 20% (House Digest)
- In 2025, 46 out of 50 U.S. states experienced some degree of drought (House Digest)
Smart Home Technology
- 78% of potential home buyers would pay extra for smart home (PGM Solutions)
- 81% of those who used smart home products would be more likely to buy home if smart technology already installed (Today’s Homeowner)
- 46% of consumers adopt smart home technology for convenience (PGM Solutions)
- Around 3 in 5 U.S. consumers projected to adopt smart home technology by 2025 (PGM Solutions)
- Smart home features like voice control, smart appliances, and smart lights are most popular (PGM Solutions)
- 59% of homeowners consider smart home technology like smart thermostats as top DIY upgrade (Hippo Housepower Report)
Buyer and Seller Preferences
What Buyers Want
- 48% of Realtors cite kitchen upgrades as area of rising demand (National Association of Realtors)
- 43% of agents say new roofing is growing priority (National Association of Realtors)
- 35% of Realtors mention bathroom renovations as must-have (National Association of Realtors)
- 56% of homebuyers say it’s “very important” to find home that doesn’t need repairs (Bright MLS)
- 38% cite move-in readiness as “somewhat important” quality (Bright MLS)
- Homes with “fresh paint” and “new flooring” in listing can sell up to 15% faster (AH Lend)
Design and Color Preferences
- 85% of experts agree soft or warm whites best for living areas when selling (Fixr.com)
- 76% say neutral colors for bedrooms (Fixr.com)
- 45% state off-white best choice for exteriors (Fixr.com)
- Neutral paint palettes like greige, soft taupe, or pale mushroom create backdrop for nearly every decor style (AH Lend)
Challenges and Barriers
Cost Concerns
- 80% of homeowners went over initial budget by at least $500 (Today’s Homeowner)
- 50% of homeowners plan to reduce spending on projects due to rising costs (Business Research Insights)
- In 2022, 86% of homeowners said they were waiting to address home repairs for financial reasons (ConsumerAffairs)
- Just 12% of respondents with serious home repair issues said they were confident they could pay out of pocket (ConsumerAffairs)
- Bathroom remodel prices jumped 11% since 2022, when homeowners spent median of $13,500 (Bath Calculator)
- Lumber prices increased by 15% in 2023 (U.S. Bureau of Labor Statistics via Business Research Insights)
Finding Contractors and Products
- 92% of homeowners face challenges during renovation projects (Houzz & Home Study via Gallery KBNY)
- One-third struggle to find suitable service providers (Houzz & Home Study)
- 28% encounter difficulties selecting right products (Houzz & Home Study)
- Over 40% of small contractors faced labor shortages in 2022 (NAHB via Business Research Insights)
Market Conditions
- High mortgage rates and inflation keeping would-be buyers in current homes (Discover Home Loans survey)
- Soft housing market and weak sales of building materials hindered home renovation growth (This Old House)
- Spending on residential improvements and repairs forecast to shrink in 2024 for first time since 2010 (ConsumerAffairs)
Housing Stock and Property Age
Age of U.S. Homes
- Median age of home in U.S. is 39 years old (Today’s Homeowner)
- More than 50%-60% of houses in U.S. were built before 1980 (Today’s Homeowner, Gallery KBNY)
- Approximately 35% of owner-occupied homes constructed before 1970 (Gallery KBNY)
- Nearly half of American homeowners living in first home they purchased (iProperty Management)
- Of those who lived in home longer than six years, 61% choose to renovate instead of move (iProperty Management)
- Americans renovate their homes every 3-5 years, undertaking projects roughly 2-3 times per decade (Gallery KBNY)
Bathroom-Specific Aging
- Bathrooms can last about 15 years before feeling dated (Margaret Carneal, Radford University via This Old House)
Professional Services and Labor
Contractor Usage
- 55% of homeowners plan to take on more DIY projects in 2025 to trim costs vs hiring contractors (Hippo Housepower Report)
- 42% of NARI members experienced increase in contracting projects (National Association of Remodeling Industry via NAR)
- 57% observed larger project scopes over past two years (NARI)
- 90% of NARI members reported greater demand for contracting and remodeling work during pandemic (ConsumerAffairs)
Labor Costs
- Labor costs tend to be 25-35% of total project cost (WA Construct)
- Plumbers charge $45-$200 per hour (Angi)
- Demolition costs between $1,000-$2,300 depending on elements (Angi, USA Cabinet Store)
- Building permits can cost anywhere from $200-$1,000 (WA Construct, various sources)
- Permit costs for bathroom renovations range from $200-$1,500 (Block Renovation)
Industry Trends and Forecasts
2025-2029 Outlook
- Near-flat real growth in 2025, with modest real rebound from 2026-2029 as inflation cools (HIRI)
- Professional (Pro) channel will lead growth through 2025 (HIRI)
- Consumer gains will broaden as DIY projects and needs-based replacements sustain activity (HIRI)
- Regional momentum favors Pacific in near term, but growth expected to normalize across regions later (HIRI)
- Existing home sales projected to grow 5.3% in 2025 (HIRI)
- Real disposable income projected to grow 1.6% in 2025 (HIRI)
- Real personal consumption expenditures projected to grow 2.3% in 2025 (HIRI)
- Consumer market sales of home improvement products expected to increase 3.9% to $400 billion in 2026 (HIRI)
- Average growth rate of 4% projected from 2027-2029 (HIRI)
Recent Trends
- Interior remodel accounted for 43.69% of DIY home improvement market size in 2024 (Mordor Intelligence)
- Outdoor living advancing at 8.08% CAGR through 2030 (Mordor Intelligence)
- North America retained 44.11% revenue share in 2024 (Mordor Intelligence)
- Asia-Pacific is fastest-growing region at 9.71% CAGR to 2030 (Mordor Intelligence)
- Building materials held 52% of market share in 2024, with flooring and tiles growing at 8% (Business Research Insights)
- Online retail sales of home improvement products reached $45 billion in 2023 (U.S. Department of Commerce)
Pandemic Impact
- Home improvement industry experienced substantial 10% YOY growth in 2020 and 2021 (The Home Improvement Research Institute)
- Record high home values and equity combined to lift improvement spending to unprecedented heights in 2022-2023 (Joint Center for Housing Studies)
- Growth expected to slow in coming years due to shifting spending priorities, professional services on rise, and rising costs (Southern California News Group)
Miscellaneous Statistics
Customer Satisfaction
- Ace Hardware had highest customer satisfaction score of all home improvement retail stores (Today’s Homeowner)
- Top four leading stores: Ace Hardware, Menards, Lowe’s, The Home Depot (Today’s Homeowner)
- Home Depot is No. 1 largest home improvement retailer (Today’s Homeowner)
Permits and Regulations
- Permits needed for bathroom projects involving plumbing, electrical, or mechanical alterations (WA Construct)
- If load-bearing wall needs to be moved or plumbing adjusted, permits required (WA Construct)
- Permit requirements vary from state to state (WA Construct)
- Unpermitted work can decrease home value, cause issues during sale, create liability problems (West Shore Home)
Tariffs and Economic Factors
- Trump administration announced 25% tariff on steel and aluminum imports in mid-March (HIRI)
- Trade policy uncertainty (TPU) tends to be concentrated in manufacturing sector (HIRI)
- Inflation expected to spike in Q2 2025 and finish at 3.9% (HIRI)
- Federal Reserve postponing further actions to cut interest rates (HIRI)
Insurance and Maintenance Apps
- 55% of homeowners see DIY as way to free up funds for additional insurance coverage or home upgrades (Hippo Housepower Report)
- Apps like Hippo Home provide personalized maintenance checklists and home health insights (Fortune)
Key Takeaways and Trends for 2025
- Market continues to grow but at slower pace than pandemic years
- Younger generations (millennials and Gen Z) driving DIY and renovation activity
- Outdoor living spaces increasingly prioritized
- Energy efficiency and sustainability remain top considerations
- Smart home technology adoption accelerating
- Cost concerns causing homeowners to scale back or DIY more projects
- Big-box retailers dominate but online shopping growing rapidly
- Kitchen and bathroom remain most popular renovation projects
- ROI highest for exterior improvements like garage doors and entry doors
- Social media (especially YouTube) crucial for younger DIYers’ research and inspiration
Note: All statistics compiled from various industry sources including Fixr.com, Joint Center for Housing Studies at Harvard University, National Association of Realtors, This Old House, The Farnsworth Group, IBISWorld, Mordor Intelligence, and other reputable home improvement research organizations. Data represents most recent available information as of 2024-2025.
Conclusion
The home improvement statistics paint a clear picture: renovation costs aren’t dropping anytime soon. Material prices and labor costs continue pushing project budgets higher, while homeowner demand for upgrades remains strong across most markets.
ROI matters more than ever. Kitchen upgrades and bathroom remodels still deliver solid returns, but the gap between renovation expenses and resale value keeps shifting based on regional improvement spending patterns.
Data from HomeAdvisor and the Remodeling Magazine Cost vs Value Report shows which projects actually pay off. Some popular home improvements look great but tank your property value at sale time.
The remodeling industry isn’t slowing down. Construction spending on residential projects hit new peaks, driven by aging housing stock and changing homeowner preferences. DIY projects gained traction, but most people still hire contractors for major work.
Plan smarter. Use these renovation cost averages and spending patterns to budget realistically, not optimistically.
Andreea Dima is a certified interior designer and founder of AweDeco, with over 13 years of professional experience transforming residential and commercial spaces across Romania. Andreea has completed over 100 design projects since 2012. All content on AweDeco is based on her hands-on design practice and professional expertise.
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