United States Home Improvement Market to Grow with a CAGR of 4.61% through 2030

The United States home improvement market is driven by rising homeowner spending, DIY culture, aging housing stock, and a growing focus on energy efficiency, smart technologies, and personalized interior design solutions

According to TechSci Research report, “United States Home Improvement Market – By Region, Competition, Forecast & Opportunities, 2030F”, the United States Home Improvement market stood at USD 476.93 billion in 2024 and is anticipated to grow USD 623.34 billion by 2030 with a CAGR of 4.61% during forecast period. The United States home improvement market is experiencing sustained growth, fueled by a variety of economic, social, and technological factors. As homeowners increasingly view their living spaces as reflections of their personal style and functional needs, demand for renovation, remodeling, and repair services continues to rise. A major driver of this market is the aging housing stock across the country. Many homes built several decades ago now require essential upgrades to maintain structural integrity and livability. These projects often include kitchen and bathroom remodeling, roof replacements, plumbing and electrical system upgrades, and energy-efficient window installations. Rather than relocating, many homeowners are choosing to invest in improving their current residences to extend their lifespan and increase property value. The desire to enhance aesthetics, functionality, and comfort plays a major role in driving these improvements.

Another significant trend shaping the market is the widespread adoption of remote and hybrid work models. As people spend more time at home, there is a heightened focus on optimizing living spaces for productivity, relaxation, and multi-functional use. Homeowners are transforming spare rooms into home offices, upgrading basements into gyms or media rooms, and reconfiguring layouts to accommodate both work and family life. This shift in lifestyle has redefined home improvement from basic maintenance to comprehensive reimagining of interior and exterior spaces. In addition, the growing emphasis on health and well-being has led to increased interest in better ventilation systems, improved lighting, soundproofing, and the use of non-toxic building materials. These enhancements not only contribute to physical wellness but also promote mental comfort and efficiency in the home environment.

Sustainability is another major force influencing the home improvement market. With growing environmental awareness, homeowners are seeking out eco-friendly solutions that reduce energy consumption and environmental impact. This includes the installation of solar panels, energy-efficient appliances, low-flow plumbing fixtures, and insulation upgrades. Green building materials, such as reclaimed wood, recycled metal, bamboo flooring, and low-VOC paints, are gaining popularity as consumers aim to create healthier, more sustainable living environments. In parallel, government incentives and rebate programs are encouraging investments in renewable energy and energy-saving technologies. Sustainable design is no longer a niche preference but a mainstream consideration that is reshaping consumer expectations and industry offerings alike.

Economic factors also play a significant role in shaping the market’s trajectory. Rising home values and limited new housing supply are prompting homeowners to invest in their existing properties instead of moving. At the same time, inflationary pressures and higher interest rates may influence spending behavior, leading consumers to prioritize essential upgrades over discretionary projects. Despite these financial constraints, the overall sentiment toward home improvement remains positive, driven by the long-term value it adds to properties and the improved quality of life it offers. Retailers and service providers are responding by offering flexible financing options, value-oriented product lines, and promotions to support continued engagement from cost-conscious consumers.

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United States Home Improvement market is segmented into product type, project, sales channel, and company.

Based on the sales channel, the online channel is the fastest-growing segment in the United States home improvement market, driven by the convenience, variety, and accessibility it offers to consumers. E-commerce platforms enable homeowners to browse, compare, and purchase products ranging from tools and materials to furniture and fixtures from the comfort of their homes. Digital tutorials, virtual design tools, and user reviews enhance the online shopping experience, making it easier for consumers to plan and execute projects. Retailers are increasingly investing in digital platforms, offering delivery, click-and-collect, and virtual consultation services, which are accelerating the shift toward online purchasing in the home improvement space.

Based on the region, the West is the fastest-growing region in the U.S. home improvement market, led by rising renovation activity in states including California, Nevada, Oregon, and Washington. Factors fueling this growth include urbanization in West Coast metros, robust population inflows, and high home prices that encourage remodeling over buying new. States such as Nevada, Arizona, and Oregon rank among the top for projected home improvement spending growth in the coming years. The West’s dynamic housing markets and demographic expansion position it as the segment with the strongest growth momentum.

Major companies operating in United States Home Improvement market are:

• The Home Depot U.S.A., Inc.
• Lowe’s Companies Inc.
• Menard Inc.
• ACE Hardware Corpoartion
• True Value Company
• 84 Lumber
• Floor & Decor Holdings Inc.
• 3M Company
• Kohler Company
• ABC Supply Co., Inc.

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“Technological advancements are also playing a crucial role in shaping the home improvement landscape. The rise of smart home solutions has made digital integration a core aspect of many renovation projects. Homeowners are increasingly installing smart lighting systems, security cameras, thermostats, door locks, leak detectors, and voice-controlled devices. These features offer enhanced convenience, energy savings, and security, making them attractive not only to tech-savvy consumers but also to those looking to future-proof their homes. The availability of home improvement apps and online visualization tools enables consumers to plan and preview renovations more effectively, boosting confidence in their purchasing decisions. E-commerce platforms have also revolutionized how consumers access home improvement products and services, offering a wide range of items, price comparisons, and customer reviews at their fingertips. This digital transformation supports a more informed, empowered, and convenience-driven approach to home renovation,” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

"United States Home Improvement Market, By Product Type (Building & Remodeling, Home Décor, Outdoor Living, Tools & Hardware), By Project (DIFM, DIY), By Sales Channel (Homeware Stores, Franchised Stores, Specialty Stores, Online, Others (Direct Sellers, General Merchandised Retailers, etc.)), By Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of United States Home Improvement market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the United States Home Improvement market.

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