U.S. Home Remodeling Market Size

U.S. Home Remodeling Market Size

U.S. Home Remodeling Market size exceeded USD 340 billion in 2020 and is expected to grow at over 4.1% CAGR between 2021 and 2027. Increase in spending on home improvement activities by rental property owners owing to surge in rental demand will foster the industry growth.

Shifting consumer trend toward advanced home technologies as well as security features followed by several convenient components including weather control appliances, smart lighting, etc., which is likely to cater to the market expansion.

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The U.S. housing industry is experiencing a considerable growth in recent years due to low-interest rates coupled with increased spending time at home. The surging demand for better and convenient amenities among interior designers, homeowners, and builders will propel the home improvement materials demand across the U.S. Tech-savvy millennials are becoming familiar and more inclined toward the short-term plans when it comes to housing investments. Increasing number of private rented houses in the U.S. has significantly supported several innovations and new & improved techniques for home improvement activities. Approximately 65% of people below 35 age group are living in rented houses in the country, sustaining the market growth.
 

Installation of advanced systems and control techniques for improving air-exchange rate will considerably propel the industry statistics. Old age people are mostly staying at homes, and indoor air quality has significantly impacted their health and comfort. The situation can be addressed effectively by improving building design and operations as well as air filtration techniques. Furthermore, to control the flow of heat and moisture, the demand for sustainable and green building materials is likely to grow in the coming years. Homeowners from major states including California, Texas, and Florida are significantly investing in home improvement projects to increase the property value.
 

Increasing inflation rate and lack of trained labors may constrain home remodeling market demand. Moreover, the COVID-19 pandemic has adversely affected the building and construction industry members including owners, developers, realtors, and supply chain vendors impelled by project cancellation, shortages of labor, and frequent supply chain disruptions. Economic downturn across the U.S. further declined the industry. However, a speedy recovery has been observed since the last quarter of 2020 led by surging usage for interior decoration, additions, and alteration projects.