Home Remodeling Market Report (By Type of Remodeling:, Kitchen Remodeling, Bathroom Remodeling, Basement Remodeling, Bedroom Remodeling, Living Room Remodeling, Outdoor Remodeling, Whole House Remodeling), By Application (System & Equipment, Flooring, Walls, Ceilings, Porch, Garden and Garage, Disaster Repair, Others), By Project Size, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The Global Home Remodeling Market size is expected to be worth around USD 949.8 Billion by 2033, from USD 630 Billion in 2023, growing at a CAGR of 4.30% during the forecast period from 2024 to 2033.

The surge in demand for residential constructions, disposable incomes and advanced technologies are some of the main key driving factors for the home remodelling market.

Home remodeling is defined as the process of making substantial changes or improvements to a residential property. This comprises of changing the structure, layouts and designs of a home to improve its functionality, value and aesthetics.

Many homeowners may restructure for different reasons like enhancing old features, cooperating altering the requirements, augmenting the energy efficacy and increasing the property value. Restructuring or remodeling project can differ from small, minor renovations such as upgrading the fixtures or repainting to more quality changes like adding more rooms, increasing spaces and remodeling the whole section of the house.

The method typically comprises of planning, designing, construction and budgeting. Successful home remodeling can outcomes in more comfortable, customized and modern living space that fulfils the rising choices and needs of the house owners.

According to an article published by Rubyhome luxury real estate in June 2022, highlights the statistics showing the figures of the home remodeling. As per the given statistics, the home remodeling is more than USD 400 billion industry with no single firm holding 5% or more of the total market share. The annual average growth of the home remodeling is 4.4%. Home remodeling generally produces USD 369 billion revenue in 2021 with 9% rise over 2020.

Median spending on home remodeling was USD 18K in 2021. The home buyers recently got their home spend USD 30,000 on remodeling in 2021. On an average of house remodeling project, the cost of recovery rate which is ROI will be 56% but some projects generate double digit rates. Home owners who have stayed in their houses for more than 6 years’ accounts for 60% of the remodeling activity but spends 50% less than the current homeowners.

Home remodeling have many advantages like it comprises of the property value, improves the aesthetics and enhances the functionality. It permits the home owners to adapt spaces to changing the requirements, implementing modern facilities and enhancing energy efficacy. Remodeling or restricting also offers a chance to identify the maintenance issues and makes sure of safety.

Moreover, it can build a more comfortable and customizes living surrounding by reflecting the homeowner’s style. Successful remodeling projects contributes to a sense of satisfaction and pride in individual’s home while maintaining the property new with modern designs and lifestyle trends. The demand for the home remodeling will increase due to its high requirement in residential construction sector that will help in market expansion in the coming years.

Key Takeaways

• Market Value: The Global Home Remodeling Market is projected to reach approximately USD 949.8 Billion by 2033, experiencing substantial growth from USD 630 Billion in 2023, with a steady CAGR of 4.30% during the forecast period from 2024 to 2033.
• Dominant Segments:
  • Type of Remodeling Analysis: Kitchen remodeling holds dominance in the market due to its significant impact on property value and homeowner satisfaction, driven by the kitchen's central role in the home and the desire for modern, functional, and aesthetically pleasing spaces.
  • Application Analysis: System & Equipment remodeling emerges as a dominant force, reflecting homeowners' focus on enhancing home functionality and efficiency, particularly through upgrades to heating, ventilation, air conditioning (HVAC), electrical, and plumbing systems.
  • Project Size Analysis: Small-scale remodeling projects dominate the market due to their accessibility, immediate impact, and lower investment requirements, appealing to homeowners seeking incremental improvements or DIY enthusiasts.
• Regional Analysis: North America leads the market with a dominant 38% share, driven by a robust housing market and a culture of home improvement. Europe follows closely with approximately 26% market share, characterized by historical architecture requiring renovations to meet modern standards.
• Key Players: Major players in the market include Kohler Co., Belfor Holdings Inc., Crane Renovation Group, JELD-WEN, Inc., Mr. Handyman LLC, Pella Corporation, Neil Kelly Inc, Dreamstyle Remodeling, Andersen Corporation, ABC Supply Co., Inc., Builders FirstSource Inc., Ferguson Enterprises, Franklin Building Supply, Ganahl Lumber, Trex Company, Inc., etc
• Analyst Viewpoint: The market's growth is driven by factors such as increased homeowner spending on home improvements, rising property values, and the desire for modern, functional living spaces. Growth opportunities lie in catering to evolving consumer preferences for energy-efficient, smart home solutions, and sustainable remodeling practices.

Driving Factors

Increasing Disposable Income and Consumer Spending Enhances Market Prospects

The rise in disposable income and consumer spending acts as a powerful catalyst for the home remodeling market. According to Trading Economics, the Disposable Personal Income in the United States was at an impressive 20589.16 USD Billion in January 2023. This financial uptrend enables homeowners to allocate more resources towards home remodeling projects, aiming not just for basic renovations but also for luxurious upgrades and aesthetic enhancements.

This increase in disposable income doesn't operate in isolation; it synergizes with a growing consumer focus on home value appreciation and personal satisfaction derived from tailored living spaces. The willingness to invest in home remodeling is further buoyed by a strong housing market, where enhancements and upgrades can significantly boost property values. The economic capability combined with the desire for improved living conditions and property investment opportunities creates a fertile ground for the home remodeling industry's growth.

Aging Housing Stock Drives Market Growth

The aging of residential properties significantly contributes to the expansion of the home remodeling market. As houses grow older, the necessity for maintenance, repairs, and updates becomes more apparent, leading to a surge in demand for home remodeling services and products. This trend is not isolated but rather a widespread phenomenon affecting a vast array of housing stocks across different regions. Statistics indicate that a considerable portion of homes in developed countries are over 20 years old, necessitating various degrees of remodeling to meet current living standards and safety regulations.

Moreover, the aging housing stock factor is closely intertwined with the historical and cultural value of preserving older homes, which adds a unique dimension to the market. Homeowners are not only looking to modernize their living spaces but also to maintain the character and integrity of their properties. This dual objective drives a more specialized segment of the home remodeling industry, focusing on restoration and preservation alongside modernization.

Changing Lifestyle Preferences and Trends Propel Market Evolution

Evolving lifestyle preferences and trends are reshaping the home remodeling market, driving demand towards open floor plans, energy-efficient solutions, and smart home technologies. These trends reflect a deeper societal shift towards sustainability, connectivity, and adaptability in living spaces. Homeowners are increasingly seeking to remodel their homes to align with these modern living standards, incorporating elements that promote energy efficiency, environmental sustainability, and technological integration.

This shift is not merely about aesthetic preferences but is deeply rooted in environmental awareness and the pursuit of cost efficiency through energy savings. The demand for smart home technology integration, which includes automated systems for lighting, heating, and security, underscores a broader trend towards homes that are not only more comfortable and stylish but also smarter and more sustainable.

Companies specializing in home renovations are now required to offer innovative solutions that address these contemporary needs, driving research and development in new materials, technologies, and techniques.

Restraining Factors

Zoning Regulations and Permitting Processes Restrain Market Growth

Zoning regulations and the need for permits add layers of complexity and expense to home remodeling projects. These requirements, while essential for safety and community standards, can be significant hurdles for homeowners. The process of obtaining permits is often seen as daunting, marked by bureaucratic delays and uncertainties that can extend project timelines and inflate budgets.

For example, navigating the maze of local zoning laws to add a new room or modify an existing structure can deter homeowners from embarking on remodeling projects. This regulatory landscape not only adds direct costs, such as fees for permits and professional services to ensure compliance, but also indirect costs in the form of time delays and potential modifications to project plans.

High Costs and Budget Constraints Restrain Market Growth

The high costs associated with home remodeling projects present a significant barrier to market growth. Remodeling a home, particularly comprehensive projects like kitchen renovations, can easily reach into the tens of thousands of dollars, encompassing expenses for materials, labor, design, permits, and unforeseen issues that arise during construction.

For many homeowners, these costs are prohibitive, either limiting the scope of their projects or preventing them from starting renovations altogether. Budget constraints are particularly impactful in economic climates where disposable income and savings may not be growing at a pace that supports discretionary spending on home improvements. Additionally, the rising costs of materials and skilled labor contribute to the overall increase in remodeling expenses, further exacerbating budgetary limitations for homeowners.

Type of Remodeling Analysis

In the home remodeling market, kitchen remodeling emerges as the dominant sub-segment, driven by its significant impact on property value and homeowner satisfaction. This preference stems from the kitchen's central role in the home, serving not only as a space for cooking but also as a hub for family interactions and entertainment. The desire for modern, functional, and aesthetically pleasing kitchens fuels continuous demand, making this segment a primary focus for both homeowners and investors. Kitchen renovations often include upgrades to appliances, countertops, cabinets, and flooring, encompassing a broad range of products and services.

Statistics show that kitchen remodeling can offer a considerable return on investment (ROI), making it an attractive project for enhancing home value. The comprehensive nature of kitchen remodels, which can include everything from structural changes to cosmetic updates, allows for significant customization and personalization, further driving their popularity.

While kitchen remodeling holds a predominant position, other segments like bathroom remodeling, basement renovations, and outdoor living spaces also contribute to the market's diversity and growth. Bathroom remodeling, for example, focuses on enhancing functionality and luxury, with trends emphasizing spa-like features and water efficiency.

Basement remodeling often aims to create additional living space, such as home offices or entertainment areas, reflecting changing lifestyle needs. Outdoor remodeling, including decks, patios, and landscaping, extends living spaces beyond the home’s interior, responding to growing interest in outdoor leisure and entertainment.

Application Analysis

In the home remodeling market, the System & Equipment segment, holding a 28.4% share, emerges as a dominant force, reflecting homeowners' growing focus on enhancing the functionality and efficiency of their homes. This segment encompasses upgrades and installations of heating, ventilation, air conditioning (HVAC) systems, electrical systems, and plumbing – crucial components that significantly impact a home's comfort, safety, and energy efficiency.

The surge in demand within this segment can be attributed to the increasing awareness among homeowners about the benefits of energy-efficient systems, driven by the desire to reduce utility bills and the environmental footprint of their homes. Additionally, the advancements in smart home technology have fueled interest in integrating intelligent systems that offer greater control and convenience.

Other sub-segments like Flooring, Walls, and Ceilings also play pivotal roles in the remodeling market, each contributing to the overall aesthetic and structural integrity of the property. Flooring renovations, for instance, are popular for their ability to transform the look and feel of a space significantly. However, the Systems & Equipment segment's emphasis on functionality and sustainability gives it an edge, aligning with current trends towards smarter, greener homes.

Moreover, the Porch, Garden, and Garage, along with Disaster Repair and Others, round out the spectrum of remodeling projects, addressing outdoor living enhancements and repairs necessitated by unforeseen damages, respectively. These sub-segments cater to specific homeowner needs, from expanding living spaces to ensuring resilience against natural calamities, thereby complementing the market's growth driven by Systems & Equipment.

Project Size Analysis

Small-scale remodeling projects are a significant segment in the home remodeling market, characterized by tasks such as painting, minor repairs, or updates to fixtures and finishes. This segment's appeal lies in its accessibility and immediate impact on a home's aesthetics and functionality, often requiring a lower investment compared to more extensive renovations. Homeowners inclined towards DIY or those with limited budgets find small-scale projects particularly attractive, enabling them to incrementally improve their living spaces without the financial and logistical complexities of larger undertakings.

Though medium and large-scale remodeling projects – involving substantial structural changes, additions, or complete overhauls of major rooms – contribute to the market's diversity and cater to a different set of homeowner priorities, small-scale projects dominate due to their broad appeal. They serve as an entry point for homeowners new to remodeling, offering a taste of the transformation that can be achieved and sometimes leading to more significant projects in the future.

The agility of small-scale projects to adapt to changing design trends and personal preferences further underscores their market dominance. As homeowners seek to update their spaces with the latest styles or address wear and tear, small-scale projects provide a flexible and cost-effective solution. This segment's role in driving growth in the home remodeling market is underpinned by its capacity to meet diverse homeowner needs, from cosmetic upgrades to essential maintenance, ensuring sustained demand across varying economic conditions.

Key Market Segments

By Type of Remodeling

• Kitchen Remodeling
• Bathroom Remodeling
• Basement Remodeling
• Bedroom Remodeling
• Living Room Remodeling
• Outdoor Remodeling
• Whole House Remodeling

By Application

• System & Equipment
• Flooring
• Walls
• Ceilings
• Porch, Garden and Garage
• Disaster Repair
• Others

By Project Size

• Small-Scale Remodeling Projects
• Medium-Scale Remodeling Projects
• Large-Scale Remodeling Projects

Growth Opportunities

Aging Housing Stock and Infrastructure Offers Growth Opportunity

The aging of housing stock and infrastructure presents a vast growth opportunity for the home remodeling market. As residential properties age, they invariably encounter the need for repairs, renovations, and upgrades. This continuous demand stems primarily from the requirement to modernize homes, integrate energy-efficient solutions, and ensure structural integrity.

Older homes, which might lack modern amenities or suffer from wear and tear, drive the demand for comprehensive remodeling services. This scenario not only necessitates basic maintenance but also provides a ripe opportunity for home remodeling companies to offer tailored solutions that enhance living spaces, improve energy efficiency, and restore the historic charm of aged properties. The market is further buoyed by homeowners' desire to preserve the character of their homes while adapting to contemporary living standards, thereby creating a sustained demand for remodeling services.

Increasing Focus on Sustainability and Energy Efficiency Offers Growth Opportunity

The escalating focus on sustainability and energy efficiency represents a significant opportunity for expansion within the home remodeling market. With environmental concerns becoming increasingly paramount and energy costs on the rise, homeowners are more inclined than ever to incorporate sustainable features and energy-efficient systems in their remodeling projects. This trend is not merely a niche but a growing market segment, driven by consumer awareness of the environmental and economic benefits of such upgrades.

Products like high-efficiency HVAC systems, eco-friendly insulation materials, and advanced windows that minimize energy loss are in high demand. These solutions offer long-term cost savings to homeowners through reduced utility bills and potential tax incentives, making them attractive investment options. Home remodeling companies specializing in green renovations can tap into this burgeoning market, providing expertise in sustainable design and energy-efficient technologies that align with consumer values and regulatory trends.

Trending Factors

Aging-in-Place and Accessibility Modifications Are Trending Factors

The increasing demand for aging-in-place and accessibility modifications is a prominent trend in the home remodeling market. This shift is driven by a growing segment of the population that is aging and desires to live independently in their homes for as long as possible. Modifications such as wheelchair ramps, walk-in showers, and stair lifts are not only about accessibility but also about enhancing the quality of life for aging homeowners or those with disabilities.

The trend capitalizes on the pain point of limited mobility, offering solutions that enable homes to adapt to the changing needs of their occupants. This demographic shift presents significant growth opportunities for home remodeling companies specializing in accessibility modifications, reflecting a broader societal move towards inclusive design. As awareness and need for such modifications increase, this sector is poised for expansion, supported by both the aging population's desire to maintain independence and the overall trend towards more accessible living environments.

Open Floor Plans and Multifunctional Spaces Are Trending Factors

The trend towards open floor plans and multifunctional spaces is reshaping the home remodeling market, reflecting changing homeowner preferences for more flexible and versatile living areas. This shift addresses the common pain point of cramped and compartmentalized living spaces, offering a solution that promotes a more modern, seamless living experience. The popularity of open floor plans can be attributed to their ability to create an illusion of more space, enhance natural light, and facilitate social interaction within the home.

Multifunctional spaces, on the other hand, respond to the growing need for homes to serve multiple purposes efficiently, such as combining work, leisure, and living areas in a cohesive manner. This trend is not only about aesthetic appeal but also about functionality, catering to the evolving lifestyle needs of homeowners. As such, the movement towards open floor plans and multifunctional spaces is a significant driver of growth in the home remodeling market, signaling a shift in how people value and use their living environments.

Regional Analysis

North America Dominates with 38% Market Share

North America holds a commanding 38% share of the home remodeling market, a testament to the region's robust economic dynamics, high disposable incomes, and a strong culture of property investment and improvement. This dominance is driven by several key factors, including an aging housing stock that necessitates renovations, a growing focus on sustainability and energy efficiency, and the high value placed on personalizing living spaces to reflect contemporary lifestyle preferences.

The region's market dynamics are influenced by its mature real estate market, where homeowners are keen to increase property value through strategic remodeling projects. Additionally, technological advancements and the availability of a wide range of home improvement services cater to the diverse needs of North American homeowners, from basic repairs to luxury upgrades.

North America's influence on the global home remodeling market is expected to remain significant. The region's ongoing innovation in green building practices and smart home technology is likely to attract further investment in home remodeling, maintaining its high market share.

For other regions, the market share and growth rates are as follows:

• Europe: Holding approximately 26% of the global home remodeling market, Europe stands out due to its rich historical architecture, which necessitates renovations to align with modern standards while preserving cultural heritage. This unique blend of tradition and innovation fuels demand for renovation projects that not only enhance functionality but also maintain the aesthetic integrity of iconic structures across the continent.
• Asia Pacific: Constituting around 22% of the market share, the Asia Pacific region is witnessing a surge in home remodeling activities driven by rapid urbanization and the steady rise in disposable incomes. As cities expand and lifestyles evolve, there's a growing demand for renovation services to upgrade living spaces, reflecting contemporary trends and improving overall quality of life.
• Middle East & Africa: Despite a relatively smaller market share of approximately 8%, the Middle East & Africa region demonstrates significant potential for growth in the home remodeling sector. Urban development initiatives and infrastructure expansion projects are creating opportunities for renovation businesses to thrive, catering to the evolving residential needs of a growing population in these regions.
• Latin America: Holding about 6% of the global market share, Latin America's home remodeling market is experiencing steady growth, fueled by an increasing urban population and a concerted effort to enhance living standards. This dynamic environment presents opportunities for renovation companies to meet the demand for modern, comfortable living spaces, driving further expansion in the region's remodeling industry.

Key Regions and Countries

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

In the Home Remodeling Market, key players like Kohler Co., Belfor Holdings Inc., and Crane Renovation Group significantly influence improvement projects, offering comprehensive services from repairs to owner-occupied homes to full-scale renovations. These companies have strategically positioned themselves to address the growing demand within the Remodeling Industry, driven by annual spending trends and a surge in DIY projects influenced by fluctuating mortgage rates.

JELD-WEN, Inc., Mr. Handyman LLC, and Pella Corporation have carved out substantial Remodeling market share by focusing on the unique needs of homeowners seeking quality and durability in their improvement projects. Neil Kelly Inc, Dreamstyle Remodeling, and Andersen Corporation are recognized for their bespoke remodeling solutions, enhancing the aesthetic and functional appeal of owner-occupied homes.

Suppliers like ABC Supply Co., Inc., Builders FirstSource Inc., and Ferguson Enterprises play a pivotal role in the improvement industry by providing essential materials and tools, facilitating spending on homeowner improvements and DIY undertakings. Additionally, innovation leaders such as Trex Company, Inc., ACE Hardware, and HOVER Inc. have revolutionized the market with cutting-edge products and technologies, boosting efficiency and creativity in home improvement projects.

Specialized firms like Jenkins Restorations, Carbon Fiber Support, and JES Foundation Repair underscore the market's diversity, offering niche services that cater to specific remodeling needs, from structural reinforcements to foundation repairs. This breadth of offerings across companies like West Fraser Timber Co., Ltd., Georgia Pacific LLC, and Weyerhaeuser Company ensures a comprehensive range of options for homeowners, driving the overall growth and evolution of the Home Remodeling Market.

Market Key Players

• Kohler Co.
• Belfor Holdings Inc.
• Crane Renovation Group
• JELD-WEN, Inc.
• Mr. Handyman LLC
• Pella Corporation
• Neil Kelly Inc
• Dreamstyle Remodeling
• Andersen Corporation
• ABC Supply Co., Inc.
• Builders FirstSource Inc.
• Ferguson Enterprises
• Franklin Building Supply
• Ganahl Lumber
• Trex Company, Inc.
• ACE Hardware
• Jenkins Restorations
• Carbon Fiber Support
• Rhino Carbon Fiber
• JES Foundation Repair
• Fortress Stabilization Systems
• West Fraser Timber Co, Ltd.
• Georgia Pacific LLC
• Weyerhaeuser Company
• Renewal by Andersen
• Racc
• HOVER Inc.

Recent Developments

• On February 2024, Montclair initiated a Home Improvement Program for eligible homeowners, aiming to address the challenges of food insecurity and provide support for necessary home repairs and improvements.
• On December 2023, loanDepot's mellohome initiated partnerships for solar installation, home improvement, and maintenance services, expanding its offerings to provide customers with a comprehensive suite of home-related solutions.
• On October 2023, West Shore Home® launched cutting-edge technology that is reshaping the home remodeling experience, positioning the company as a leader in driving positive change within the home remodeling industry.
• On July 2023, Crate & Barrel made a significant move by entering the home renovation category with its new kitchen and bathroom collection, offering a range of high-design products designed for easy, no demolition home refreshes.

Report Scope