U.S. Home Remodeling Market Size By Project (DIY, DIFM), By Distribution Channel (Direct Selling Through Online, Direct Selling To Consumer, Wholesale To Retailer, Wholesale To Consumer, Wholesalers Selling Online), By Wholesale (Residential Trade, Residential Showroom, B2C), By Application (Windows & Doors, Kitchen Additions & Improvements, Bathroom Additions & Improvements, Landscaping, Flooring, Roofing, HVAC, Pools/Hot Tubs, Electrical Construction, Other Room Additions & Alterations), Industry Analysis Report, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2019 – 2026

Published Date: Dec 2019  |  Report ID: GMI4459  |  Authors: Kiran Pulidindi, Hemant Pandey

Report Format: PDF   |   Pages: 722   |   Base Year: 2018




Summary Table of Contents Industry Coverage Methodology

Industry Trends

U.S. Home Remodeling Market size was valued at USD 374.6 billion in 2018 and will exhibit 4.5% CAGR by 2026.
 

U.S. Home Remodeling Market

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The conception of home remodeling or renovation is the process of augmenting one's home. Home improvement consists of projects that upgrades an existing home interiors, exteriors or other improvements to the property such as maintenance & repair, saving energy, safety and preparedness.
 

The U.S. home remodeling industry primarily involves several activities including conversion, alteration, improvement, modernization, repair, and replacement of a particular building structure. Surging per capita income and housing prices, aging housing stock, and a pickup in household growth are collectively contributing towards strong home remodeling activities in the region. Homeowners belonging to major states such as California, Texas and Florida possess lucrative spending capacities on home renovation projects. For instance, according to national association of home builders (NAHB), in 2018, the spending per improvement in California increased to over USD 9,565 with an increase of over 20% increase as compared with 2017. U.S. remodeling is mainly influenced by the changing consumer demographics coupled with increasing count of rented homes. according to Pew Research Center, in 2016, the number of house renters in the country grew from 43.3 million with an increase of over 36.6% as compared with 2006. Higher demand for cost-effective, durable, high-quality, and compact renovation components to adjust in the smaller rental spaces is driving the overall Americas home improvement business share.
 

Rapid sales of existing houses are among the foremost drivers propelling the home improvement industry. For instance, in 2019, the national rent index in the U.S. grew to 1.4% as compared with 2018 since majority of homeowners usually make renovations before putting up the house on sale or rent. Shifting preference of homeowners for energy efficient and luxurious living spaces is another factor contributing towards home remodeling industry expansion. Supportive policies and programs introduced by local state governments are significantly supporting the installation of energy efficient home appliances and utilities. Strategic collaborations between government bodies and utilities have successfully implemented programs including appliance recycling, residential retrofit, financial incentives and residential weatherization and direct install programs. These factors are contributing towards improvements in roofing, windows, doors, HVAC systems and home insulations. However, upsurge in the raw materials and labor costs may pose a key restraint in the remodeling growth. For instance, in June 2019, the U.S. House of Representatives passed the legislation to offer hike in minimum wages up to USD 15/hour until 2025.
 

U.S. Home Remodeling Market Report Coverage
Report Coverage Details
Base Year: 2018 Market Size in 2018: USD 374.66 Billion
Historical Data for: 2014 to 2018 Forecast Period: 2019 to 2026
Forecast Period 2019 to 2026 CAGR: 4.5% 2026 Value Projection: USD 507.5 Billion
Pages: 722 Tables, Charts & Figures: 236
Geographies covered (50): Northeast U.S.: States considered under this region are Pennsylvania, New York, Vermont, New Hampshire, Massachusetts, Maine, Rhode Island, Connecticut, New Jersey, Delaware, and Maryland Southeast U.S.: States considered under this region are Arkansas, Louisiana, Mississippi, Alabama, Georgia, Florida, South Carolina, Tennessee, North Carolina, Virginia, West Virginia, and Kentucky Midwest U.S.: States considered under this region are North Dakota, South Dakota, Nebraska, Kansas, Minnesota, Iowa, Missouri, Wisconsin, Illinois, Michigan, Indiana, and Ohio Northwest U.S.: States considered under this region are Washington, Oregon, California, Nevada, Idaho, Montana, Wyoming, Alaska, Utah, and Colorado Southwest U.S.: States considered under this region are Arizona, New Mexico, Texas, Hawaii, and Oklahoma
Segments covered: Project, Distribution Channel, Wholesale, Application, and Region
Companies covered (30): Andersen Corporation, ABC Supply Co., Inc., Builders FirstSource Inc., Ferguson Enterprises, Franklin Building Supply, JELD-WEN, Kohler, Masco Corporation, Pella Corporation, The Sherwin - Williams Company, Harvey Building Products, BMC Stock Holdings, National Wholesale Supply, Lu Kitchen & Bath, Enterprise Wholesale, Webb Concrete & building materials, APCO Industries, United Wholesale Supply, Mayer Electric Supply Company, Woodhill Supply, Beacon Roofing Supply, HD Supply Holdings, Watsco, M S International, F. W. Webb Company, Keller Supply, T & A Supply Company, Mac Arthur, Pacific Coast Supply, R.E. Michel Company
Growth Drivers:
  • Elevating prices of new homes and increasing transfer of ownership
  • Supportive energy efficiency programs and financing options
Pitfalls & Challenges:
  • Increasing labor cost and need to enhance supply chain visibility and efficiency

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DIY vs DIFM

Do-It-Yourself & Do-It-For-Me Market, 2014, 2018, and 2026, (USD Billion)
Do-It-Yourself & Do-It-For-Me Market, 2014, 2018, and 2026, (USD Billion)

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DIFM appears to be the dominant segment owing to the incorporation of a mix of DIY & DIFM renovation activities. The leading manufacturers in the industry are improving their delivery options & logistics and branding & packaging for attracting potential consumers and attaining a competitive edge over other players. Shifting trends among the baby boomer population across the globe toward DIFM activities & projects owing to the unveiling of several technologies & innovations are propelling the segment growth. Moreover, wide availability of options & preferences related to several designs & aesthetic aspects in different home improvement projects will provide a positive outlook for U.S. home remodeling market growth.
 

On the other hand, millennials are more inclined towards do-it-yourself projects and more interested in energy efficient & green renovation projects with certain smart home features. Therefore, DIY segment will grow at a significant growth rate of 4.6% CAGR. These projects only involve end consumers without the inclusion of any other third-party members. DIY projects are typically inexpensive than professionally installed projects, that include costs of labour, overhead, and profits in addition to materials.
 

Choice of Distribution Network Will Attract Number Of Customers

Wholesalers play a vital role in bridging the gap between manufacturers and retailers in the supply chain. Wholesale to retailer segment will account for a substantial share in the U.S. home remodeling market owing to the presence of numerous wholesalers across the country. Higher profit margins gained by wholesalers is attributed towards their capability to buy variety of home improvement products in bulk quantities.
 

Direct selling through online channels will showcase significant growth prospects owing to the multiple benefits including personalized delivery, variety of options and flexible buying hours. Well defined home improvement solutions can be delivered efficiently through online channels without any human involvement. The technological advancement enables online customer support in purchasing decisions, real-time tracking, and extensive product information, resulting in the massive potential for online sales to attain further growth as a distribution platform.
 

Growing Investments In Wholesaling of Home Improvement Products

Major activities of a wholesale include entering contracts with suppliers, promotion of materials, warehousing, transportation, inventory management, data processing, insurance, price policy, financing, and budgeting. Residential showroom is anticipated to be the fastest growing segment with a 5.1% CAGR in developed states. It allows consumers to inspect and observe their products carefully before making purchase decision. Additionally, elimination of shipping costs and instant gratification received by the consumers aid in building the customer loyalty for future purchases. It includes showrooms with display kitchen, bathrooms and lighting products. It assists customers by providing advice and project management services for their home improvement projects. Higher sales potential in conjunction with greater inventory options pertaining with showroom wholesaling is significantly driving the segment over the forecast timeframe.
 

Growing Preference Among Homeowners for Kitchen Additions & Improvements

U.S. Home Remodeling Market, By Application 2015 - 2026, (USD Billion)
U.S. Home Remodeling Market, By Application 2015 - 2026, (USD Billion)

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Kitchen improvement & additions is projected to observe the fastest growth at 5.5% CAGR over the forecast timeframe owing to continuous incorporation of technology &. innovation. Smart kitchens are rapidly emerging in the home improvement market due to the rising consumer demand for easy add-ons such as motion sensing water faucets, automatic dispensing of washing liquid, and one touch feature of refrigerators. An upsurge in the popularity of dark colors among cabinet structures coupled with the streamlined designs, materials & textures for cooking countertops has proliferated home renovation demand.
 

Adoption of New Product Development By Industry Players

U.S. Home remodeling firms are heavily investing in numerous R&D activities along with new technological advancements & innovations for delivering high end results to their customers. The key firms in the industry are continuously focusing on upgrading their outlook by uploading sample shots of multiple home improvement work on their website and retailing them through their respective online portals. Andersen Corporation, Ferguson Enterprises, ABC Supply, JELD-WEN, Kohler Co., Pella Corporation are providing a strong business outlook for the U.S. home improvement market.
 

U.S. home improvement market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2015 to 2026, for the following segments:

  • U.S. Home Remodeling Market By Project

    • DIY
    • DIFM
  • Market Statistics By Distribution channel

    • Direct selling through online
    • Direct selling to consumer
    • Wholesale to retailer
    • Wholesale to consumer
    • Wholesalers selling online
  • Market Analysis By Wholesale

    • Residential trade
    • Residential Showroom
    • B2C
  • Market Analysis by application

    • Windows & doors
    • Kitchen additions & improvements
    • Bathroom additions & improvements
    • Landscaping
    • Flooring
    • Roofing
    • HVAC
    • Pools/hot tubs
    • Electrical construction
    • Other Room Additions & Alterations
  • U.S. Home Remodeling Market By Region

  • Northeast U.S.
    • Pennsylvania
    • New York
    • Vermont
    • New Hampshire
    • Massachusetts
    • Maine
    • Rhode Island
    • Connecticut
    • New Jersey
    • Delaware
    • Maryland
  • Southeast U.S.
    • Arkansas
    • Louisiana
    • Mississippi
    • Alabama
    • Georgia
    • Florida
    • South Carolina
    • Tennessee
    • North Carolina
    • Virginia
    • West Virginia
    • Kentucky
  • Midwest U.S.
    • North Dakota
    • South Dakota
    • Nebraska
    • Kansas
    • Minnesota
    • Iowa
    • Missouri
    • Wisconsin
    • Illinois
    • Michigan
    • Indiana
    • Ohio
  • Northwest U.S.
    • Washington
    • Oregon
    • California
    • Nevada
    • Idaho
    • Montana
    • Wyoming
    • Alaska
    • Utah
    • Colorado
  • Southwest U.S.
    • Arizona
    • New Mexico
    • Texas
    • Hawaii
    • Oklahoma
       

Frequently Asked Questions (FAQ) :

According to this report, residential showroom wholesale segment is anticipated to be the fastest growing segment with a 5.1% CAGR up to 2026.
Elevating prices of new homes, increasing transfer of ownership and supportive energy efficiency programs & financing options will drive the U.S. home improvement industry demand.
The U.S. kitchen improvement & additions application is projected to observe the fastest growth at 5.5% CAGR over the forecast timeframe owing to continuous incorporation of technology &. innovation.

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