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Home Renovation Market Size 2025-2029

The home renovation market size is forecast to increase by USD 83 billion at a CAGR of 4.5% between 2024 and 2029.

The market is experiencing significant growth, driven by the global trend of rapid urbanization and the increasing focus on enhancing living spaces through technology. One of the most notable trends shaping this market is the adoption of Artificial Intelligence (AI) in home improvement projects. This technological advancement offers numerous benefits, including energy efficiency, personalized living experiences, and improved home security. However, the market faces a major challenge In the form of a shortage of skilled labor, which can lead to project delays and increased costs for homeowners. To capitalize on this market opportunity, companies must focus on innovative solutions that address the labor shortage, such as pre-fabricated renovation kits or partnerships with local training programs. This market continues to experience steady growth, driven by the desire for modern living standards, improved environmental performance, and the integration of smart home technologies.
Additionally, investing in AI-powered tools and services can provide a competitive edge, enabling companies to offer more efficient and personalized renovation services to meet the evolving demands of consumers. Overall, the market presents a promising landscape for growth, with opportunities for companies that can effectively navigate the challenges and leverage technological advancements to meet the needs of the urbanizing population.

What will be the Size of the Home Renovation Market during the forecast period?

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The residential remodeling market encompasses various activities repairing broken structures, and weather sealing. Sustainable trends, such as the use of green remodeling products and sustainable building materials, are gaining traction as consumers become increasingly environmentally aware and conscious of their carbon footprints. New trends In the market include the adoption of 3D rendering software for virtual home design, structural glazing for enhanced temperature control, and the integration of solar panels for energy efficiency.
Economic slowdowns and reduced disposable income have led to project budgets being carefully considered, resulting in increased focus on labor costs and supply chain disruptions. Old buildings are being repurposed and renovated, with a focus on preserving their historical character while incorporating modern amenities. New flooring, lighting systems, insulating glass, and electrical & insulation upgrades are popular choices for homeowners seeking to enhance their living spaces. Government incentives and homeowner budgets are also driving the market, with a particular emphasis on energy-efficient windows and green buildings. Despite these trends, the market faces challenges, including labor shortages and rising material costs, which can impact construction expenditure.
The novel coronavirus pandemic has also disrupted the supply chain, leading to delays and increased costs for many projects. Overall, the residential remodeling market is expected to continue growing, driven by a combination of consumer demand and government incentives, as well as advancements in technology and sustainable building materials.

How is this Home Renovation Industry segmented?

The home renovation industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Professional renovation
  Do-It-Yourself (DIY) renovation


Application

  Kitchen renovation
  Bathroom renovation
  Exterior renovation
  Bedroom renovation
  Others


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    Spain
    UK


  APAC

    China
    India
    Japan


  Middle East and Africa



  South America

By Type Insights

The professional renovation segment is estimated to witness significant growth during the forecast period.

Professional home renovation services offer homeowners customized solutions for complex projects, ensuring high-quality results that meet specific aesthetic and functional requirements. These services encompass a range of tasks, from structural changes to intricate design solutions, executed with precision and care. Key features include specialized skills, custom design solutions, time efficiency, and regulatory compliance. Professionals manage tasks such as HVAC upgrades, electrical rewiring, plumbing system improvements, and energy efficiency upgrades using sustainable materials and modern home design trends. Safety enhancements and smart home technology installations are also common, along with home renovation inspiration and remodeling p

Remodeling expenditure in the United States amounted to *** billion U.S. dollars in the third quarter of 2022 and is set to reach *** billion U.S. dollars by the third quarter of 2023. This upward trend has been in place since 2015 but is expected to slow down in 2023. Why do homeowners invest in home improvement? Homeowners undertake home improvement projects for a variety of reasons, such as to increase value before sale, to improve the energy efficiency of their home, or to repair and upgrade their newly purchased, but older home. Approximately one quarter of homeowners who renovated in 2023 did so because they wanted to customize a recently bought house. How are they financing these projects? In 2023, most homeowners funded their renovations with cash from their savings, whereas ***** percent used an unsecured loan to do so. This indicates that home improvements are important enough for many Americans to prioritize saving for such projects.

The Home Remodeling Market report segments the industry into Project Type (DIY(Do it Yourself), Professional), By Distribution Channel (Online, Offline), By Application (Windows and Doors, Kitchen and Bathroom, Floor and Roof, Walls, Other Applications), and By Geography (North America, Europe, Asia Pacific, Middle East and Africa, South America). Five years of historical data and market forecasts are included.

The residential remodeling industry has expanded solidly over the past five years. Notably impacted by increased investments in housing by private equity, remodelers have experienced a surge in demand, particularly from property managers and developers looking to transform low-cost, investor-owned homes into appealing rental properties. However, remodelers have faced headwinds as inflation and interest rate hikes tempered enthusiasm for larger projects. Despite these challenges, the steady rise in home prices and an appetite for improving existing residences have helped sustain the momentum for remodelers. Revenue has been increasing at a CAGR of 2.9% over the past five years to total an estimated $164.5 billion in 2025, including an estimated increase of 0.2% in 2025. Fewer housing starts, because of high interest rates, have increased the demand for renovation activity as buyers looked to enhance existing properties rather than invest in new ones. However, remodelers have had to contend with rising costs of building materials and escalating wage costs driven by labor shortages and an aging workforce. Competition within the industry has intensified, with many remodelers prioritizing growth in clientele even at the cost of reduced profit. Legislation, like the Inflation Reduction Act, provided a boost, driving demand for energy-efficient renovations. Also, despite a considerable increase in DIY projects in 2020 and 2021, remodelers regained considerable market share in 2023. Residential remodelers will continue to enjoy growth. Expected interest rate cuts will likely spur greater investment in larger renovation projects as homeowners tap into second mortgages to finance expansive remodels. With home prices still on an upward trajectory, consumers are expected to prioritize renovations to add value to their properties. Also, ongoing climate challenges, including increased wildfires and hurricanes, will present additional opportunities for remodelers to engage in repair and restoration projects. As innovative technologies like smart home systems and 3D printing become more prevalent, remodelers stand to benefit by meeting the growing demand for sustainable and customized renovations. However, they will continue to be forced to navigate challenges such as rising costs and tariffs in a competitive landscape that demands adaptability and innovation. Also, the expiration of tax credits may hinder growth. Industry revenue is forecast to increase at a CAGR of 1.8% to total an estimated $180.3 billion through the end of 2030.

Cash from savings was the most common source of funding for home renovations among American homeowners in 2025. About 86 percent of millennials used savings to renovate their home, while among seniors this share was 80 percent. Another highly popular option was credit cards. Millennials were most likely to fund their home renovation project with credit card debt, with 38 percent choosing this option.

DIY Home Improvement Market size was valued at USD 857.39 Billion in 2024 and is projected to reach USD 1192.78 Billion by 2031, growing at a CAGR of 4.21% from 2024 to 2031.Global DIY Home Improvement Market DriversThe market drivers for the Diy Home Improvement Market can be influenced by various factors. These may include:Growing Homeownership Rates: The demand for do-it-yourself home repair projects is being driven by rising homeownership rates, especially among younger generations and millennials. To add personality to their homes and raise the value of their properties, homeowners are more likely to do do-it-yourself modifications, repairs, and renovations.Desire for Cost Savings: Compared to engaging professional contractors, DIY home remodeling projects can save costs. DIYers frequently decide to forego hiring labor services in favor of saving money on supplies by buying and installing everything themselves.Availability of Online Tutorials and Resources: With the growth of DIY tutorials, instructional videos, and online resources, customers have easy access to important advice and ideas for home renovation tasks. Social media channels, DIY blogs, and YouTube give homeowners the freedom to take on projects on their own and learn new skills.Convenience and Flexibility: Do-it-yourself home remodeling gives homeowners the freedom to work when and how they want, making it convenient and flexible. For those who are busy, do-it-yourself tasks are a desirable alternative because they may be completed on the weekends or in the evenings without depending on contractors' availability.Empowerment and Creative Expression: Homeowners can take pleasure in their achievements, personalize their living environments, and express their creativity through do-it-yourself home remodeling projects. Doing work around the house gives one a sense of accomplishment and empowerment and strengthens their bond with their surroundings and house.Sustainability & Environmental Awareness: The need for eco-friendly do-it-yourself home renovation projects is being driven by growing concerns about environmental sustainability. Reusing, upcycling, and sustainable materials are popular choices among do-it-yourselfers who want to cut down on waste and their projects' environmental effect.Renovation at Home TV Series and Media Influence: Popular home improvement TV series, periodicals, and internet resources provide homeowners with innovative concepts and styles that pique their interest in do-it-yourself projects. Media coverage of interior design and renovation shapes consumer tastes and promotes do-it-yourself projects.Trend Towards Home Comfort and Wellness: The COVID-19 pandemic has sped up the trend toward home comfort and wellness, encouraging homeowners to make do-it-yourself renovations to improve their living spaces. Home organization, comfort enhancements, and indoor/outdoor living areas are DIY projects that fit with changing lifestyle requirements.DIY-friendly Product Innovation: Pre-assembled kits, simple-to-install fixtures, and streamlined instructions are just a few examples of the user-friendly, DIY-friendly products that manufacturers and retailers are increasingly offering to appeal to the do-it-yourself market. For customers with different skill levels, these goods increase the accessibility and attainable nature of DIY projects.

Check Market Research Intellect's Home Remodeling Market Report, pegged at USD 450 billion in 2024 and projected to reach USD 650 billion by 2033, advancing with a CAGR of 5.5% (2026-2033).Explore factors such as rising applications, technological shifts, and industry leaders.

Residential renovation expenditure in Canada represents total real spending by homeowners on improvements, upgrades, repairs, and modifications to existing housing stock, measured in billions of constant 2017 chained Canadian dollars. This metric captures investment in projects ranging from minor cosmetic updates to major structural remodeling across single-family homes, townhouses, and multi-unit residential buildings. Data is sourced from Statistics Canada's capital formation statistics and adjusted for inflation to reflect actual volume changes rather than price effects.

In the fiscal year 2024, there were around *** million orders for repair and maintenance works on dwellings received by construction companies in Japan. The number of orders for remodeling and renovation works reached *** million.

Booming home renovation market analysis reveals a robust CAGR, driven by rising disposable incomes and aging housing stock. Explore key trends, regional insights, and top companies shaping the future of home refurbishment (2019-2033).

Global home improvement market size was valued USD 340.81 billion in 2024 and is expected to rise to USD 490.13 billion by 2034 at a CAGR of 4%.

The UK home improvement market size reached USD 14.4 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 21.6 Billion by 2033, exhibiting a growth rate (CAGR) of 4.3% during 2025-2033. The market is propelled by the rising demand for energy-efficient homes, increased focus on home aesthetics and interior design, growing adoption of smart home technology, and a rise in DIY projects and home renovation during the pandemic.

Home Renovation Market Outlook

According to our latest research, the Global Home Renovation Market size was valued at $1,150 billion in 2024 and is projected to reach $1,890 billion by 2033, expanding at a robust CAGR of 5.7% during the forecast period of 2025–2033. The primary growth driver for this dynamic market is the escalating demand for modernization and energy efficiency upgrades across both residential and commercial spaces. As urbanization accelerates and consumer preferences shift toward personalized, smart, and sustainable living environments, the home renovation industry is witnessing a surge in large-scale refurbishments, system upgrades, and interior overhauls. The proliferation of digital platforms and e-commerce has further democratized access to renovation products and services, empowering end-users with a wider array of choices and streamlined project management solutions. This transformation is underpinned by rising disposable incomes, evolving lifestyle aspirations, and increasing awareness about the long-term value addition that quality renovations can bring to property assets worldwide.

Regional Outlook

North America continues to dominate the home renovation market, accounting for the largest share of global revenue in 2024, with a market value exceeding $430 billion. This region’s preeminence is largely attributed to its mature housing infrastructure, high rates of homeownership, and a well-established culture of property enhancement. The United States, in particular, leads the way due to its aging housing stock, robust consumer spending, and widespread adoption of smart home technologies. Favorable government incentives for energy-efficient upgrades and sustainable materials have further fueled demand, while a strong network of professional contractors and specialty retailers ensures seamless project execution. Additionally, North America benefits from advanced supply chain logistics and a highly competitive retail environment, which collectively drive innovation and keep renovation costs relatively stable.

The Asia Pacific region is emerging as the fastest-growing market, forecasted to register a remarkable CAGR of 7.9% during 2025–2033. Rapid urbanization, increasing disposable incomes, and a burgeoning middle-class population are key factors propelling demand for home renovation services in countries like China, India, and Southeast Asian nations. Governments in the region are actively promoting green building codes and smart city initiatives, which, combined with a young demographic keen on modern lifestyles, are fostering a vibrant renovation ecosystem. Additionally, the proliferation of online retail channels and mobile platforms has made it easier for consumers to access renovation products and services, further accelerating market growth. Major investments from international players and local startups alike are also contributing to the expansion of the market, particularly in urban centers where demand for quality living spaces is at an all-time high.

Emerging economies in Latin America, the Middle East, and Africa are gradually gaining traction in the home renovation market, although they face unique challenges related to economic volatility, supply chain constraints, and regulatory complexities. In these regions, the adoption of renovation activities is often driven by localized demand, such as urban renewal projects, infrastructure upgrades, and the need to adapt existing structures to new building codes or climate resilience standards. While consumer awareness and spending power are steadily rising, market penetration remains limited due to fragmented distribution channels and a lack of standardized service providers. Nevertheless, policy reforms aimed at affordable housing, coupled with international development aid and private sector investments, are creating new opportunities for growth and innovation in these markets.

Report Scope

The DIY Home Improvement Market Segments by Product Type (Building Materials, Paints and Coatings, Tools and Equipment, and More), by Distribution Channel (Home-Improvement / DIY Stores, Online Pure-Play Retail, and More), by Project Type (Interior Remodel, Exterior / Curb Appeal, and More) and Geography (North America, Europe, Asia-Pacific, and More). The Market Forecasts are Provided in Terms of Value (USD).

In 2022, direct sales made up nearly ** percent of China's home improvement market. In comparison, retail sales had a market share of merely ** percent that year.

The global House Renovation Services market is experiencing robust expansion, projected to reach a significant valuation of approximately $500 billion by 2025, with a compelling Compound Annual Growth Rate (CAGR) of around 8.5% expected to drive its value to over $950 billion by 2033. This substantial growth is primarily fueled by a confluence of factors, including an increasing desire among homeowners for personalized living spaces, a growing emphasis on energy efficiency and sustainability in homes, and the rising average age of housing stock, which necessitates regular upgrades and repairs. Furthermore, a burgeoning trend towards smart home integration and the demand for aesthetically pleasing and functional renovations are significant drivers. The market is bifurcated into Residential Buildings and Commercial Buildings, with residential applications currently dominating due to increased disposable income and a greater focus on home improvement as a lifestyle investment. Within renovations, Partial House Renovation services hold a larger share, catering to the more frequent, smaller-scale upgrades, while Whole House Renovation projects represent a significant but less frequent undertaking. Several key trends are shaping the house renovation landscape. The adoption of advanced technologies for design visualization, such as Augmented Reality (AR) and Virtual Reality (VR), is enhancing customer experience and project planning. There's also a pronounced shift towards eco-friendly materials and sustainable building practices, driven by both environmental consciousness and government incentives. The rise of the gig economy and specialized renovation platforms is also making services more accessible and competitive. However, the market is not without its challenges. Restraints such as fluctuating material costs, labor shortages in skilled trades, and the potential for extended project timelines due to supply chain disruptions can impact growth. Regulatory hurdles and obtaining necessary permits can also add complexity. Despite these, the sustained demand for improved living and working environments, coupled with an aging housing infrastructure, positions the house renovation services market for continued strong performance throughout the forecast period. This in-depth report provides a thorough analysis of the global House Renovation Services market, encompassing a detailed study from the historical period of 2019-2024, the base and estimated year of 2025, and a forward-looking forecast for 2025-2033. The report offers invaluable insights into market dynamics, key players, emerging trends, and future growth prospects, projecting a market valuation in the hundreds of millions of USD.

The Global DIY Home Renovation Apps Market Size Was Worth USD 364.30 Billion in 2023 and Is Expected To Reach USD 643.19 Billion by 2032, CAGR of 6.52%.

United States Home Improvement Market was valued at USD 476.93 billion in 2024 and is anticipated to grow USD 623.34 billion by 2030 with a CAGR of 4.61%.

The home renovation and refurbishment market is experiencing robust growth, driven by several key factors. Rising disposable incomes, particularly in developed economies, are empowering homeowners to invest in improving their living spaces. A growing preference for personalized and customized homes, fueled by lifestyle changes and the increasing influence of home design trends showcased on social media and home improvement television shows, is another significant driver. Furthermore, the aging housing stock in many regions necessitates renovations and upgrades, contributing to market expansion. Technological advancements in building materials, design software, and construction techniques are also streamlining the process and enhancing the quality of renovations, creating further demand. While rising material costs and skilled labor shortages pose challenges, the overall market outlook remains positive, suggesting continued expansion throughout the forecast period. The market segmentation, while not explicitly detailed, can be reasonably inferred to include various sub-segments based on project type (e.g., kitchen remodeling, bathroom renovation, whole-house refurbishment), homeowner demographic (age, income), and geographic location (urban vs. rural). Competitive analysis indicates a fragmented landscape with several regional and national players vying for market share. Companies like Blue Line Build, Ernoi, Jubilee SA, and others are likely employing diverse strategies, including specialization in specific renovation areas, branding focused on premium services or cost-effectiveness, and expansion into new geographic markets. The success of these businesses hinges on their ability to adapt to evolving customer preferences, manage supply chain challenges, and leverage digital marketing to reach potential clients. The forecast suggests a sustained period of growth, offering attractive opportunities for both established firms and new entrants. Strategic partnerships and investments in technology are expected to play crucial roles in market leadership.

Vietnam Home Improvement Market is Segmented by Product Type (Building Materials, Kitchen Improvement and Additions, and More), by Distribution Channel (Home Improvement Stores, Specialty Stores, and More), by End User (DIY, and DIFM / Professional Installation), by Project Type (Renovation, Remodelling, and More), by Region (Northern Vietnam, Central Vietnam, and More). The Market Forecasts are Provided in Terms of Value (USD).