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

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% during forecast period. The United States home improvement market is experiencing steady growth, fueled by rising homeowner investments in renovation, remodeling, and repair projects. Factors such as aging housing infrastructure, increased property values, and a strong DIY culture contribute to this trend. Consumers are prioritizing energy efficiency, smart home integration, and sustainable materials to enhance home value and functionality. The popularity of online platforms, home improvement shows, and e-commerce channels has made products and guidance more accessible. Additionally, the growing preference for personalized living spaces and the rise in remote work have further spurred demand for home office upgrades and multifunctional interior spaces.

Key Market Drivers

Aging Housing Infrastructure

One of the primary drivers of the U.S. home improvement market is the aging housing stock across the country. A significant portion of residential properties, particularly in urban and suburban areas, were built several decades ago and require regular maintenance, upgrades, and renovations. According to the U.S. Census Bureau, the median age of owner-occupied homes in the U.S. was 41 years in 2023, with nearly 50% of homes built before 1980. Older homes often face issues related to outdated plumbing, electrical systems, insulation, roofing, and structural wear. As a result, homeowners are increasingly undertaking renovation projects to ensure safety, improve energy efficiency, and enhance the overall functionality of their homes. The demand for modernized kitchens, updated bathrooms, new flooring, and replacement of aging windows and doors is surging. These updates not only address functional concerns but also help improve property values in a competitive real estate market. With limited new housing supply in many areas, homeowners are opting to renovate rather than relocate, further fueling the demand for home improvement products and services.

Rise of Remote Work and Home-Based Lifestyles

The shift toward remote and hybrid work arrangements, accelerated by the COVID-19 pandemic, has reshaped how Americans use and view their homes. As more individuals spend time working, studying, and socializing from home, there is an increased emphasis on creating comfortable, functional, and multi-use spaces. Homeowners are investing in transforming spare rooms into home offices, upgrading basements into entertainment centers or gyms, and converting garages into workshops or studios. According to data from the U.S. Census Bureau’s Household Pulse Survey (2024), over 30% of working adults reported working from home at least part of the week, underscoring a significant shift in lifestyle. This has expanded the scope of home improvement beyond traditional repair and maintenance to include design and customization based on personal preferences and professional needs. Moreover, the growing popularity of outdoor living such as patios, decks, and landscaped gardens has driven demand for exterior upgrades and amenities. This transformation of living spaces is expected to remain a long-term trend, providing sustained momentum for the home improvement industry.

Technology Integration and Smart Home Advancements

The increasing availability and affordability of smart home technologies are significantly influencing home improvement trends in the U.S. Consumers are incorporating a wide array of connected devices to enhance convenience, security, and energy management. Popular upgrades include smart lighting systems, voice-controlled assistants, video doorbells, automated locks, smart security cameras, and intelligent climate control systems. These technologies not only provide real-time control and monitoring but also add to the resale value of homes. Tech-savvy homeowners are often motivated to renovate for the purpose of integrating these systems seamlessly into their living spaces. Moreover, smart technologies are now being bundled with traditional improvement services by contractors and retailers, making them more accessible and appealing to a broader audience. This digital transformation is expected to drive innovation in the home improvement sector and create new revenue streams for suppliers, installers, and service providers alike.

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Key Market Challenges

Labor Shortages and Skilled Workforce Constraints

One of the most pressing challenges facing the U.S. home improvement market is the shortage of skilled labor. As demand for renovation and remodeling projects continues to rise, contractors and construction firms are struggling to find enough qualified workers to meet consumer needs. This labor gap spans a range of trades, including electricians, plumbers, carpenters, HVAC technicians, and general contractors. The aging workforce in the construction industry exacerbates this issue, as experienced professionals retire and fewer young people enter the trades. The lack of labor not only delays project timelines but also drives up labor costs, which are often passed on to homeowners. This can make home improvement projects more expensive and deter some homeowners from undertaking major renovations. Additionally, the quality of workmanship may suffer when less experienced workers are hired to fill the gap, impacting customer satisfaction and long-term market growth. The labor shortage is especially acute in high-demand urban and suburban areas where renovation activity is concentrated, making it a critical hurdle for the industry to overcome.

Volatile Raw Material Prices and Supply Chain Disruptions

The home improvement market is highly sensitive to fluctuations in raw material prices and global supply chain stability. Essential materials such as lumber, steel, copper, cement, insulation, and paint can experience significant price volatility due to factors like international trade tensions, tariffs, weather events, and global demand shifts. During the COVID-19 pandemic, supply chain disruptions led to shortages and sharp price increases in many building materials, particularly lumber and drywall, resulting in project delays and cost overruns. Although supply chains have gradually improved, ongoing geopolitical instability, transportation bottlenecks, and high energy costs continue to affect the availability and pricing of materials. Homeowners are often forced to make compromises on materials or delay projects altogether, impacting overall market momentum. Retailers and contractors must also adapt to these uncertainties by diversifying suppliers, managing inventory strategically, and navigating fluctuating input costs all of which add complexity to the home improvement ecosystem.

Key Market Trends

Surge in DIY Home Improvement Projects

A prominent trend in the U.S. home improvement market is the growing popularity of DIY (do-it-yourself) projects. Driven by the availability of online tutorials, home improvement TV shows, and social media influencers, more homeowners are taking renovation and repair tasks into their own hands. Platforms like YouTube, Pinterest, and TikTok offer step-by-step guidance on a wide range of activities from painting and tiling to assembling furniture and installing fixtures. This has empowered homeowners to experiment with projects without hiring professionals, saving costs while personalizing their spaces. Retailers such as Home Depot and Lowe’s are capitalizing on this trend by offering DIY-friendly tools, kits, and instructional resources both in-store and online. DIY projects are especially popular among millennials and Gen Z homeowners who prefer budget-conscious and hands-on approaches. According to a 2024 study, nearly 40% of homeowners reported undertaking at least one DIY project in the past year, highlighting the widespread appeal of self-led home improvement. The trend is further supported by flexible work-from-home schedules that give consumers more time to complete home tasks at their own pace.

Growing Demand for Sustainable and Eco-Friendly Solutions

Sustainability is becoming a key focus in home improvement, with consumers showing a strong preference for environmentally friendly materials, energy-efficient systems, and sustainable building practices. Homeowners are increasingly choosing products that minimize environmental impact, such as reclaimed wood, recycled insulation, low-VOC paints, and bamboo flooring. Energy-efficient appliances, LED lighting, smart thermostats, and solar panels are also gaining popularity as homeowners look to reduce their utility bills and carbon footprints. According to the U.S. Department of Energy, households that upgrade to ENERGY STAR-certified products can save up to 30% on energy bills, incentivizing adoption. Federal and state incentives for green renovations further encourage sustainable investments. In addition, many consumers are now more concerned with indoor air quality, leading to demand for non-toxic materials and better ventilation systems. Retailers and manufacturers are responding by expanding their eco-friendly product offerings and promoting sustainability certifications like ENERGY STAR, LEED, and FSC. This trend aligns with broader societal concerns around climate change and resource conservation, and it is expected to grow in importance in the coming years.

Personalization and Design-Centric Renovations

Today’s homeowners are looking for more than just functional upgrades they want spaces that reflect their personal tastes and lifestyles. As a result, there is a strong trend toward design-centric renovations that prioritize aesthetics, comfort, and individuality. Consumers are investing in customized cabinetry, unique lighting fixtures, statement walls, and specialty tiles to give their homes a distinctive look. Open-concept living areas, spa-inspired bathrooms, and gourmet kitchens remain highly sought-after features. Influenced by design content on platforms like Instagram and HGTV, homeowners are more informed and involved in the planning and styling of their projects. Additionally, home improvement apps and augmented reality (AR) tools allow consumers to visualize their ideas before committing to changes. This demand for personalization is also driving niche markets, such as luxury finishes, vintage décor, and artisanal products. Ultimately, personalization is redefining home improvement as a creative, lifestyle-oriented pursuit rather than a purely utilitarian task.

Segmental Insights

Product Type Insights

Building and remodeling was the dominating segment in the United States home improvement market, driven by increasing investments in upgrading outdated residential infrastructure and enhancing property value. Homeowners are prioritizing large-scale renovations such as kitchen and bathroom remodeling, room additions, and structural repairs. Rising real estate prices are encouraging people to renovate rather than relocate, while aging housing stock necessitates frequent upgrades. Additionally, growing interest in open floor plans, modern aesthetics, and energy-efficient designs is further fueling demand. Both DIY enthusiasts and professional contractors contribute to the momentum of this segment, making it the core focus of home improvement activities.

Sales Channel Insights

Homeware stores was the dominating segment in the United States home improvement market, serving as primary destinations for consumers seeking tools, materials, and décor for renovation and maintenance projects. Retail giants like Home Depot, Lowe’s, and Menards offer extensive product selections, expert advice, and in-store services that appeal to both DIY enthusiasts and professional contractors. These stores provide one-stop solutions, including appliances, lighting, flooring, paint, and plumbing supplies, often complemented by competitive pricing and loyalty programs. Their widespread physical presence, combined with growing online capabilities, enhances accessibility and convenience, solidifying their leadership in the home improvement retail landscape.

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Regional Insights

The South was the dominating region in the United States home improvement market, driven by rapid population growth, affordable housing, and a strong real estate sector. States like Texas, Florida, and Georgia are experiencing high residential construction and renovation activity due to urban expansion and favorable climate conditions. The region's aging housing stock also fuels demand for remodeling and repair. Additionally, the popularity of outdoor living spaces, such as patios and decks, further boosts home improvement spending. Lower labor and material costs in the South, along with a rising number of homeowners, continue to position the region as a market leader.

Recent Development

• In Feb 2025, Lush Decor, the U.S.-based home fashion brand, made its debut in India at Bharat, unveiling its luxury home textiles range including comforters, quilts, pillows, curtains, and more. Attendees could preview and purchase via Amazon USA and the brand’s D2C site

• In June 2023, Asian Paints unveiled its first Beautiful Homes Studio in Surat, Gujarat a 13,000 sq ft, three‑floor luxury decor destination featuring over 2,700 SKUs, premium furniture, fabrics, wallpapers, blinds, and integrated digital experiences. It reflects the brand’s push into ultra‑luxe home décor

• In Sep 2023, Banana Republic has launched BR Home, an upscale home furnishing brand offering furniture, lighting, rugs, textiles, and décor with premium materials like French oak, cashmere, marble crafted by global artisans. Available online, with U.S. pop‑ups in New York and LA.

Key Market Players

• 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. 

Report Scope:

In this report, the United States Home Improvement Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• United States Home Improvement Market, By Product Type:

o   Building & Remodeling

o   Home Décor

o   Outdoor Living

o   Tools & Hardware

• United States Home Improvement Market, By Project:

o   DIFM

o   DIY

• United States Home Improvement Market, By Sales Channel:

o   Homeware Stores

o   Franchised Stores

o   Specialty Stores

o   Online

o   Others

• United States Home Improvement Market, By Region:

o   South

o   West

o   Midwest

o   Northeast

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the United States Home Improvement Market.

Available Customizations:

United States Home Improvement Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).