Remodeling Market Size

Remodeling Market Size

Remodeling Market size surpassed USD 4,070 billion in 2022 and is anticipated to grow at 3.5% CAGR from 2023 to 2032. Increasing investments to upgrade and upkeep of aging infrastructure, improving living standards and the evolution of modern tastes have driven a change in consumer preferences and buying habits, thereby bolstering the industry demand.

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The subsequently, investments toward DIY home decor and renovations have increased, and are shaping the market growth. According to Harvard’s Joint Center for Housing Studies report, investments towards home renovations grew over 3% to hit approximately USD 420 billion, as consumers modified their living spaces for school, leisure, and work in response to COVID-19.

Labor shortage may constrain industry development

Despite the rising consumer appetite for remodeling, a lack of skilled labor may adversely impact the remodeling market expansion. The growing scarcity of skilled labor has made acquiring their expertise at reasonable costs a challenge for customers, which is leading to dwindling remodeling projects. As per National Electrical Contractors Association, about 7,000 electricians enter the field annually, but 10,000 retire in exchange. Meanwhile, skyrocketing raw material procurement costs are presenting further challenges in the sector.