The current global pandemic and lockdowns have brought change into every aspect of our lives. The most recent home improvement statistics show a considerable spike in numbers compared to previous years.
With transitioning to working and studying from our homes came the need to make a home more comfortable and suitable for work, learning, and leisure. With canceled vacations, closed restaurants, and a lack of outdoor fun activities came an increase in disposable income and time to finally check some home improvement projects off of our to-do list.
Unlike during previous recessions, home improvement has remained a bright star in the economy, even marking record revenue growth.
Let’s hear some facts, crunch some numbers, and see some trends for 2021.
Top Home Improvement Stats (Editor’s Choice)
- Home improvement spending has increased from $745 in 2019 to $8,305.
- Millennials spend 60% more money on home improvements than the rest.
- The smart home market will probably reach a profit of $46.767,4 million in 2025.
- Around 45% of shoppers in home improvement stores are women.
- Renovating the entire house costs $44,000–75,000.
- You can save up to 30% on the electricity bill using energy-efficient appliances.
- 19% of homeowners have postponed critical repairs due to COVID-19.
Home Improvement Industry Statistics
1. Approximately 50% of US homes were built before 1980.
(Eye On Housing)
Homes are getting older, and with a housing shortage on the market, many homeowners are investing in home improvements instead of moving.
As homes age, the need for renovation and remodeling grows. Older houses are usually not built with the same quality materials and technology available to us today. Upgrading an old structure can also be cost-effective and safer in the long run.
2. Remodeling statistics for 2021 show the average price of exterior projects was around $15,000.
The decisions to remodel certain parts of the house largely depended on staying safe. The exterior projects, like roofing, fencing, and replacing gutters, were the ones that required hiring pro contractors as long as the working crew didn’t enter the home and endanger the health of the family.
3. The most commonly undertaken home improvement project in 2020 was interior painting.
According to home improvement statistics, 35% of homeowners decided to tackle this task. Not only is this project possible at a relatively low cost, even if you are renting the place and have no possibilities to make drastic changes, but it also offers instant visual change. Moreover, it is pretty easy to DIY, which explains why it sits on top of the list.
In addition, remodeling industry trends show that people avoid indoor remodeling projects they can’t complete themselves. In the era of social distancing, it is no wonder that people are wary of others entering their homes. It’s worth mentioning that 45% of those taking on a painting project were millennials.
4. 28% of homeowners reckon it is more affordable to renovate than to move.
Surveys on the US home improvement show that the longer you live in a home, the more likely you are to renovate instead of move. The aging generation wants to remain in their homes and live in peace as long as possible.
The most common home improvements enhance accessibility (smart toilets, walk-in tubs, elevators) and safety (thermostats, security systems, smoke sensors). Moreover, smart security cameras allow family members to monitor the well-being and security of their loved ones.
Millennials, who now comprise the majority of first-time home buyers, also choose to renovate. Online networks, such as Pinterest and Instagram, are an essential source of inspiration for younger generations.
5. By 2025, home improvement sales in the US are predicted to amount to $620 billion.
In 2021, these sales came up to $538 billion. The most popular chains in the home improvement retail industry were Home Depot, Lowe’s, 84 Lumber, Tractor Supply, and Ace Hardware.
Home Depot earned the most in sales in 2020 (over $130 billion) and is the US’s leading chain. Even though it is still the largest in the home improvement market in 2021, it ranked fifth on the list of customer satisfaction.
6. 70% of US citizens decided to undertake some home improvement projects during the COVID-19 pandemic in 2020.
The desire to renovate their homes is increasing as people spend more time at home during the lockdown. Many surveyed Americans dedicated their time to home improvement in 2020. Moreover, millennials who lived in older homes spent more money renovating those old homes to fit the latest trends.
According to the home improvement industry statistics for 2021, this increase in home improvement activity could decline as people return to their regular daily routines.
7. In 2020, 41% of consumers stated that their home improvement projects’ main reason was to make the home better suited for evolving lifestyle needs.
During the time pre-COVID19, the home used to be a mere living space. However, the pandemic has taken us all on a wild ride. It has affected all aspects of life—including work, education, and outdoor activities. Thus, homes have been turned into multifunctional spaces for work, school, and living. Home improvement industry trends have therefore changed.
8. 77% of millennials invest in smart home upgrades.
(HomeAdvisor, iProperty Management)
They spend 60% more on home improvement and do 30% more projects on average. Smart home enhancements are becoming more and more popular with technology-addicted and trend-following millennials. Younger generations spend a lot more money on smart additions to their home than the Baby Boomer generation, as recent home improvement statistics indicate.
Although the latter group is less tech-savvy, they invest in so-called aging-in-place home improvements that can significantly assist them in their day-to-day lives.
9. 80% consider a business that displays its Better Business Bureau Accreditation to be honest and ethical.
(The Better Business Bureau)
When examining the industry data, BBB showed that being honest, credible, and ethical in business and forming good relationships with clients goes a long way. More than 80% of US consumers are more likely to trust a company and purchase from a business rated A or higher.
Many companies rely on online customer insight. Transparency is of high value in the home improvement market, especially nowadays, when most searches for supplies and contractors go online, even if products are ordered and delivered.
10. 61% of home improvement companies use digital presentation tools, and Google Slides is one of the most popular ones.
The home improvement industry had to adapt to new demands quickly. Social distancing made in-person presentations difficult, if not impossible. The sale strategies evolved, and meetings soon resumed, albeit mostly virtually or outdoors, keeping a safe distance between the parties involved.
11. The average home improvement cost is a whopping $44,000–$75,000 for a complete house renovation.
However, a lot of homeowners decide to tackle a renovation room-by-room. Most home improvement costs are 5–10% higher than in 2020 due to the shortage of materials (primarily lumber) and qualified workers.
12. For 64% of homeowners, their home means more to them now when they’ve made some improvements.
Furthermore, this survey shows that 58% of renters would like to own a home because they could do more with the living space; 56% of homeowners want to learn gardening, while 51% have bigger plans for improving their homes in 2020.
Home improvement industry statistics also show some fascinating shifts in spending—46% of the people surveyed stated that they would spend the money they have spent on home improvement elsewhere in “normal” circumstances.
13. 27% of homeowners would choose to improve the kitchen if given $10,000 for home improvements.
Furthermore, 70% of people cook more at home, so the need for a good kitchen is obvious. The kitchen upgrade is consistently among the most wanted and planned upgrades, based on the home remodeling statistics, and it can certainly prove to be the most expensive.
The bathroom, as expected, came second (18%), and outdoor space enhancements were the third most desired project.
14. 70% of homeowners put some projects on hold due to COVID-19.
(Sears Home Services)
Why is this alarming? Some of these repairs were long overdue (19% decided to leave critical maintenance for another day), and that can cause serious safety issues. One in five homeowners admits they are aware delaying repairs can jeopardize their safety.
15. Home improvement market share will likely increase by 1.5% in 2022.
The home improvement industry is ranked 48th most prominent in the US with a value of $235.3 billion. Moreover, it has grown by 5.3% per year between 2017 and 2022.
16. The South spends 35% more on emergency home repairs.
The Midwest is safer regarding home emergency spending. That can be attributed to it not being in an area where earthquakes, wildfires, and hurricanes are frequent.
The South spends more on emergencies due to the hurricane impacts. The emergency spendings are around 10% higher in the Northeast and West than in the Midwest.
17. Home improvement spending increased from $745 in 2019 to $8,305 in 2020.
Being confined at home has made people more aware of all those cracked floor tiles, scraped flat surfaces, mismatched furnishings, chipped paint, and old faucets that seem to start dripping when it’s time for resting. The more you look at something, the more problems you see—hence the need to purchase the supplies for fixing all those eyesores.
Home Improvement Industry Trends for 2021 That Are Here to Stay
As the pandemic extended into 2021, social distancing and staying at home continued with it. Again, more time spent at home and more disposable income led to planning and completing new home improvement projects. People adapted to the current situation and found new ways to make the best of it.
We compiled a short but entertaining list of the latest trends and tendencies in home improvement.
18. The price of typical home office improvement averages $1,000–$2,000.
Home remodeling industry statistics show that home offices are still trending, as many expect that they will continue working from home even after the pandemic is over. Homeowners spend the most money on lighting, floor coverings, and paint that they use to convert or repurpose unused space into a much-needed workspace.
19. The Smart Home market profit is estimated to be $46.767,4 million in 2025.
(Statista, Global Market Insights)
Moreover, the home improvement market size is estimated to exceed $1,120 billion by the same year. Tech-savvy millennials pay attention to the latest technology trends and are more likely to invest in smart home improvements.
The other commonly overlooked group of people who rely on smart home improvements more is the elderly. For them, some smart home upgrades, such as smart smoke detectors, can mean the difference between life and death.
20. Homeowners invest around $600–$4,500 on average in outdoor projects.
Current circumstances made people think outside the box, and it also manifests in the home improvement trends. Multifunctional outdoor spaces provide an excellent way of staying safe during the pandemic and still having the possibility to get outside, relax, and have some fun.
Backyards have become a place for safe unwinding from the long day of working and studying from home. Nothing is better than ending your day or spending the weekend with family, barbecuing, and resting on your new comfy garden chairs. In addition to that, you can even have a cup of coffee with a guest in the fresh air.
This trend is here to stay strong among home remodeling trends, especially as we spend more time in home confinement.
21. 21% of homeowners bought their products online.
(Pro Remodeler, HIRI)
There has been an apparent decline in in-store purchases of home improvement supplies. However, the retail industry isn’t the only one that relies on doing business online.
Many home improvement firm owners state that they hire more staff to implement new, more interactive ways for customers to get project estimates without contractors entering their homes. The switch to online working also means the “death of home shows,” as Tanya Donahue, president of RIKB Design + Build, says.
22. Home improvement spending statistics indicate that a smaller bathroom remodel will cost you from $5,000 to $10,000.
Spaces to decompress have become a necessity. Stress has been a constant part of our everyday lives during the pandemic, and there is a desire for a Zen spa-like atmosphere, primarily regarding bathroom improvements. At the end of a long day spent inside four walls, drawing a relaxing bath and de-stressing in an at-home spa sounds very appealing.
23. Using energy-efficient appliances can save you up to 30% of the electricity bill every year.
(Fool, Green Journal, Green Journal, EnergySage)
Energy-saving equals money-saving—it’s one of the best-known home improvement facts. The typical American family is spending around $1,500 a year on electricity alone. Even if installing some eco-friendly upgrades can cost a pretty penny, going green cuts the living cost over the long term. For example, purchasing widely available LED bulbs and other energy-efficient appliances can save you a considerable amount of money.
If you install solar panels, you can save as much as $30,000 during your solar panel system’s lifetime. Environment-friendly upgrades, such as solar panels, better insulation, and rainwater collecting are becoming more and more common. Home improvement statistics suggest that millennials and GenZ are leading the way in eco-friendly home updates.
Take a look at some renewable energy stats; this is bound to convince you to try going green(er).
24. Transforming unused space into a home gym typically costs $300–$800.
You can fulfill your leisure needs while staying safe. Projects of this sort are among the most widespread trends. Home gyms and home theaters are the most popular. People spent the most money on floor mats, paint, and basic electrical.
Still, there are some exceptions. According to remodeling industry statistics, one homeowner reported that he invested $22,000 into a home theater. He hired a professional company to undertake this task, and workers have used outdoor access to the basement, so the family stayed safe.
However, as the pandemic subsides, we can expect that these home improvements will lose in demand and popularity.
25. 90.3% of homeowners who plan and complete projects are highly DIY confident.
Home renovation statistics reveal that homeowners rely on themselves to do more minor upgrades, like installing new light fixtures, doing the painting, and similar. Turning to DIY instead of hiring a professional is easily understandable. Family health and safety are the priority, and many homeowners say that they avoid bringing others into a home as much as they can.
Moreover, some have even learned the how-tos of many household projects. There hardly is a better time to pick up new skills to maintain your home. The DIY segment is now, more than ever, tightly linked to home renovation trends because the newfound interest in DIY has brought many new customers into the game. The likelihood of DIY being trendy in the foreseeable future is very high.
26. 61% of respondents have tried gardening.
Getting some fresh air during quarantine is a must. More than half of homeowners have done some work outdoors. Garden landscaping (and even growing some produce) is the most popular exterior project. Science has, after all, found gardening therapeutic.
27. Home improvement statistics show that 30% of homeowners will keep paying for the work they don’t know how to do.
Although the pandemic drastically changed people’s perspective on what can and cannot be DIYed, homeowners will still hire professionals for certain services instead of doing them themselves.
The statistics for 2019 show that 18.6% reported they purchased lawn maintenance services, 13.5% hired pest/insect control, and 13.2% hired HVAC maintenance professionals.
Hiring professionals for these tasks will continue post-pandemic. We can also see the return to more significant projects done by pro contractors (bath and kitchen remodeling are on the top of the project list).
Home Improvement Retail Industry Stats
28. Both Home Depot and Lowe’s have seen strong revenue growth; their net sales rose by 23% and 20%, respectively, with the shift towards online shopping.
Craig Menear, the CEO of Home Depot, said that their online sales marked 80%—of year-over-year growth. More than half of the products were delivered to the store and then picked up by a customer. Curbside pickup has also been a popular method of delivery.
In addition, Lowe’s online sales have shown an impressive number of 106%—double the previous year-over-year.
29. 85% of home improvement retailers’ market share consists of Home Depot and Lowe’s combined.
(Seeking Alpha, Statista, Statista)
They are still the North American home improvement market leaders, but they also have had significant changes due to the ongoing pandemic. For example, Home Depot’s revenue increased by 7.1% in Q1 2020. On the other hand, the situation with e-retailers is different. Amazon is the leader in this area, with 38.7% of US e-sales in 2020.
30. Home improvement industry statistics predict that the DIY segment will reach $680 billion in 2025.
Shopping for DIY supplies and projects will decline as everyday life resumes. Even though the DIY industry segment is only estimated to grow, many think that returning to normal activities, events, and work will affect spending on DIY projects and bring back professional contractors into the picture.
31. Home decor industry statistics show that Bed Bath & Beyond, IKEA, and Wayfair are the top leaders in the US home decor and furnishing industry.
(Allied Market Research, arganoUV)
The global home décor market is forecast to reach $838.6 billion by 2027, while the US market is estimated to be $202 billion in 2024.
These numbers are the product of constant style changes and trends. New home décor can quickly help achieve the desired aesthetics and make space pleasing and functionally practical.
32. 45% of Home Depot and 47% of Lowe’s shoppers are women.
This is clear proof that the home improvement industry is not all about men. Home improvement statistics point out that a significant percent of the DIY and home improvement industry consists of kitchen equipment and home decor that are traditionally the favorites of women of all ages.
33. Ace Hardware hit the score of 863 out of 1,000 and was named the most satisfying home improvement retail store in 2021.
(Statista, Ace Hardware)
Since 2006, Ace Hardware was ranked first 13 out of 14 years (2007–2017, 2019, and 2020). Customers especially praise this chain for its staff and service.
Furthermore, as home improvement industry stats show, Ace Hardware had 5,300 stores in the US in 2020, which was a lot more than Home Depot (1,973 stores).
Taking all things considered, we can easily observe that the home improvement industry will survive and thrive. People will always need more or less significant home improvements. The tendency to renovate instead of move will most likely continue.
On the other hand, when life goes back to normal after the pandemic, home improvement sales are predicted to fall (mainly in the DIY industry). People will, after all, try to resume their pre-pandemic daily activities that most certainly don’t include isolating inside four walls all day.
The numbers will undoubtedly fluctuate, but who knows, maybe some people will decide to stick with the hobbies and DIYing they picked up while in quarantine, and the high sales will continue.
People Also Ask
What’s the difference between remodeling and renovation?
Although “remodeling” and “renovation” are often used interchangeably, understanding the difference between these two terms will help you plan suitable and cost-effective improvements and bring you a step closer to your dream home.
Renovation, by definition, is restoring something to good condition and fixing and improving an outdated structure. It includes various projects, from simply changing faucets or painting walls to replacing old woodwork.
Renovation serves to update something to new standards, while remodeling completely and drastically changes the design, functionality, and layout of space. For example, turning your basement into a home gym is considered remodeling, not a renovation.
What is the most popular home improvement?
According to a HomeAdvisor report, the most popular home improvements for 2020 were the following: interior painting (34.5%), bathroom renovations (30.9%), flooring installation (25.8%), landscaping (24%), kitchen renovations (22.6%), smart home improvements and exterior painting (19.2%), roofing (16.3%), fencing (16.1%), and adding a deck or porch (14%). The total percentage doesn’t equal 100% since some people plan multiple projects.
How much is the home improvement industry worth?
The market size of the American home improvement industry was $538 billion in 2021. Moreover, this amount is projected to reach $620 billion by 2025. Despite the impact of COVID-19 on the economy, the home improvement business has bloomed. It is now stronger than in the last ten years. In addition, the most common home improvement project is garden landscaping.
What is the most expensive room to remodel?
The most expensive and complicated remodeling project is the kitchen. It is the center of one’s home, a warm and cozy place where we prepare good food for our family.
With the increasing need for home-cooked meals when there is no open restaurant in sight, the kitchen has gained in popularity and use. And so has grown the desire to renovate it.
Although the cost can vary depending on various things— size, materials used, and the difficulty of design—the average price of a kitchen remodel is $21,660.
Number two on the list of most expensive home remodeling projects is the bathroom, averaging $9,436.
How big is the remodeling industry?
The remodeling industry was worth $340.95 billion in 2020, and expectations are it will reach $456.19 billion by 2027, growing at a CAGR rate of 4.3%. In addition, it’s likely to reach $15.5 trillion by 2030, considering how much money people spend on tech upgrades and smart homes. In fact, kitchen additions and improvements will probably lead the market share, followed by other room additions and alterations and roofing.
How many remodeling contractors are there in the US?
According to IBISWorld, 463,537 remodeling businesses have functioned in the US as of 2021, increasing by 2.9% from 2020. Now, there are 703,856 employees in the remodeling industry, which is 1.6% more than in 2020.
Although the remodeling market size is $97.6 billion, there is no company with more than a 5% market share in the US. The biggest remodeling companies are Belfor Holdings Inc, Power Home Remodeling Group LLC, and Window World Inc.
Furthermore, home improvement statistics reveal that the cost-to-value ratio of the remodeled property was 63.7% in 2020.
- Ace Hardware
- Allied Market Research
- Eye On Housing
- Floor Daily
- Global Market Insights
- Green Journal
- Green Journal
- Insider Intelligence
- Pro Remodeler
- Remodeling Calculator
- Store Brands
- The Better Business Bureau