Key home improvement trends to monitor
Overall home improvement spending is increasing. Spending on home improvement went absolutely bananas during the pandemic years of 2020 and 2021 but has cooled significantly since. However, HIRI sees a bounceback ahead. “That growth should continue steadily from 2025 to 2028, resulting in a roughly $642.3 billion home improvement products market by the end of the forecasted period. The professional market was hit hardest in 2023 but is expected to increase steadily during the next couple of years.”
Younger homeowners, especially, are looking for a change. HIRI’s research shows that a majority of homeowners would be keen to move, depending on interest rates and if the price were right. Younger people (ages 25-44) and those with incomes over $80,000 are the most likely group wanting to move houses, but those who’ve owned their homes for over 20 years are more likely to stay put.
Look to previous expenditures to predict future spending. HIRI explains: “There’s a noticeable relationship between homeowners who feel locked into their current housing situation and what they’re willing to spend on home improvement,” adding that “locked in homeowners have spent an average of approximately $7,000 on home improvement in the past year — and they are anticipating to spend even more in the next 12 months.”
High-income homeowners may be ready to sell. HIRI says those with the “means and motivation” to sell their homes are more likely to undertake home improvement projects. However, “ ‘Preparing a home for sale’ as a motivation for undertaking a home improvement project leads to an average spend of less than $4,000. Homeowners tend to spend more on a project when it is motivated by something else, such as improving quality of life or preparing to age in place.”
Smaller projects are hot right now. Homeowners seem to be putting off more expensive overhauls—or simply downsizing the scope of their vision. HIRI writes: “About two-thirds of homeowners feel it’s a bad time to start a home improvement project that costs more than $5,000,” adding that “about 70% of homeowners in 2024 feel that it’s ’about the same’ or even a ‘good time’ to start a home improvement project under $5,000.”
Substance over style. HIRI’s research finds that homeowners are increasingly taking on projects that help them maximize overall enjoyment, rather than adding stylistic flourishes. “The greatest motivation for undertaking home improvement projects in the past 12 months was ’to better enjoy’ a home, followed by updating the home’s style.”
For more insights into homeowner spending trends moving forward, read HIRI’s full report here.
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