| Study Period | 2019 - 2032 |
| Market Size in 2024 | USD 531.3 Billion |
| Market Size in 2025 | USD 547.8 Billion |
| Market Size by 2032 | USD 724.2 Billion |
| Projected CAGR | 4.1% |
| Largest Region | South |
| Fastest Growing Region | West |
| Market Structure | Fragmented |
|
Explore the market potential with our data-driven report
The size of the U.S. remodeling market in 2024 was USD 531.3 billion, and it will reach USD 724.2 billion by 2032 at a CAGR of 4.1% during 2025–2032. The market is growing because of the increasing residential property prices, aging houses, and rising customer interest in sustainable and energy-efficient remodeling. An increase in the number of people working from home mode, shift from generational houses to single-family homes, and federal and state tax incentives for energy-efficient renovations are the other factors affecting the growth of the market positively.
Through the Home Energy Rebate Program under the Inflation Reduction Act, the Department of Energy (DoE) offers up to USD 14,000 per household as a rebate for energy-efficient renovations to low- and moderate-income households. Solar panels, insulation, and smart home technologies are eligible for such financial assistance, driving the number of home renovation projects.
General contracting is the leading category with a share of 35% as large-scale reconstruction jobs need one primary contractor to supervise work and oversee project completion. General contractors know everything from structural to MEP changes, which is why residents in the country continue to seek their services. This category is growing because homeowners choose remodeling their homes instead of moving, as the interest rates on new houses are high, and the stock of new houses is low.
The service types analyzed here are:
The residential category leads the market with a share of 70% because householders spend significant money on kitchen and bathroom renovations. The rising mortgage rates and limited housing availability boost home remodeling activities. Even when people move to a new home, they remodel it extensively to suit their preferences, lifestyles, individualities, and practical requirements. A lot of new homeowners specifically retile bathrooms and kitchens, also installing new fixtures; redo the living room and bedroom flooring, repaint walls, and make at least a few structural changes.
The applications analyzed here are:
Wood is the leading material with a share of 30% because it is widely used for floors, cabinets, walls, and support systems due to its easy availability and visually pleasing aesthetics. As per studies, almost 95% of the houses in the U.S. are made of wood, while only 6% are based primarily on concrete and bricks. Apart from easy availability, wood is cheaper, and constructing with it is a lot faster than with concrete, bricks, and steel frames. However, since wooden houses are lightweight and not as durable, they are easily damaged by earthquakes, hurricanes, fires, and tornadoes. Hence, rebuilding and repairing them further drive the demand for wood.
The materials analyzed here are:
Retail stores lead the market with a share of 75%. The home improvement industry is controlled by major store brands, such as The Home Depot, Lowe's, and Menards, which provide customers with various remodeling materials, tools, and appliances. Most homeowners like physical shopping because prefer need face-to-face consultation and product testing before making a purchase. In 2024, The Home Depot reported net sales of USD 159.5 billion and net earnings of USD 14.8 billion.
The distribution channels analyzed here are:
Professional installation dominates the segment with a share of 65% due to the complexity of remodeling and the various compliance requirements. The Joint Center for Housing Studies of Harvard University (JCHS) says that people in the U.S. spend more than USD 500 billion a year on residential renovations and repairs. While small projects can be done DIY, comprehensive renovation and remodeling require professionals, especially if the installation of smart appliances is involved.
The installation types analyzed here are:
Smart home integration is the leading technology with a share of 35%, because homeowners are increasingly focusing on comfort, safety, and power savings. People are now buying sophisticated lighting systems connected to voice assistants, security equipment, and automated heating & ventilation equipment. Home automation hubs, such as Amazon Alexa, Google Nest, and Apple HomeKit, provide users with easy integration. Google, Amazon, and many other consumer electronics and technology companies have recently made investments in developing next-generation home automation hubs and smart devices.
The technologies analyzed here are:
Drive strategic growth with comprehensive market analysis
The South is the leading region with a share of 45% because of its growing population. People in Texas, Florida, and Georgia are renovating their kitchens, bathrooms, exterior spaces, and living rooms with a focus on comfort and energy efficiency. Southern states face a constant hurricane risk, which is why people here are increasingly investing in storm-resistant home renovations. In 2024, the State of Florida allocated USD 400 million to remodel homes with hurricane-proof roofs and windows.
The regions analyzed here are:
The market is moderately fragmented as it has a large number of contractors of different capacities, capabilities, and area of operation, professionals, and retailers. The remodeling sector has independent local and regional contractors, regional firms, major retail chains, and national home improvement chains. The market has become more complex because of the expanding presence of online retailers and producers who sell directly to consumers.
Want a report tailored exactly to your business need?
Request CustomizationLeading companies across industries trust us to deliver data-driven insights and innovative solutions for their most critical decisions. From data-driven strategies to actionable insights, we empower the decision-makers who shape industries and define the future. From Fortune 500 companies to innovative startups, we are proud to partner with organisations that drive progress in their industries.
Working with P&S Intelligence and their team was an absolute pleasure – their awareness of timelines and commitment to value greatly contributed to our project's success. Eagerly anticipating future collaborations.
McKinsey & Company
India
Our insights into the minutest levels of the markets, including the latest trends and competitive landscape, give you all the answers you need to take your business to new heights
We take a cautious approach to protecting your personal and confidential information. Trust is the strongest bond that connects us and our clients, and trust we build by complying with all international and domestic data protection and privacy laws
Customize the Report to Align with Your Business Objectives
Request the Free Sample Pages