Surprising changes in the industry could impact your home improvement plans
The home improvement industry has been hot for the last two years. Across the country, homeowners are spending billions maintaining and improving their homes. The recent growth in home improvement projects is holding strong, even as the cost of materials has increased. While the limited availability of some materials has stalled some projects, many other plans have flourished.
These statistics are both surprising and inspiring. Whether you’re considering renovating or remodeling, DIY landscaping projects, or something else, home improvements are a valuable investment for homeowners.
There has been marked growth across home improvement industries over the years, and current projections show dramatic growth is still happening. Both DIY project spending and the professional remodeling market are expected to keep getting larger over time.
Check out these interesting home improvement statistics:
Over the last two years, the home improvement industry grew by more than 3%. (Joint Center for Housing Studies of Harvard University)
The U.S. spent $538 billion on home improvement in 2021. (Hardware Retailing)
Home improvement sales are projected to reach $625 billion in 2025. (Hardware Retailing)
By 2027, the home improvement industry is expected to be worth more than $1 trillion per year. (Grand View Research)
49% of homeowners saw equity gains they weren’t expecting, creating potentially trillions of dollars that can be used on home improvements.
Since 2020, a variety of factors (including the pandemic and unexpected equity gains) have led more homeowners to start DIY home improvement projects.
Large home centers, hardware stores, DIY lumber yards, and the rest of the home improvement retail industry provided Americans with the supplies they needed to tackle projects big and small.
Older homeowners dedicate the smallest amount of their home improvement budgets (15%) to home DIY projects. (Joint Center for Housing Studies of Harvard University)
Lumberyard sales reached almost $138 billion in 2021. (Hardware Retailing)
Sales at hardware stores increased by approximately $4 billion in 2021 for a total of $63 billion. (Hardware Retailing)
Exterior home improvement projects, including siding, windows, and doors, account for the majority of spending. (Grand View Research)
By 2027, almost 19% of all home improvement spending will focus on outdoor leisure improvements. (Grand View Research)
Americans spent the most on home improvements between the months of April and June. (Hardware Retailing)
As a larger percentage of the population is spending 50% or more of their time at home, there have been significant changes to how much people spend within the home improvement industry.
According to research from Harvard, home improvement spending has increased each year since the pandemic started, reaching $420 billion in 2021. (Joint Center for Housing Studies of Harvard University).
This increased the overall number of projects completed and drove people’s home improvement trends toward lifestyle quality improvements, including painting their homes, installing new flooring, and remodeling their kitchens.
Take a look at the eye-opening statistics from an Angi survey below.
Homeowners completed, on average, one extra project per year over the last two years.
84% of homeowners are planning a home improvement project related to heating and cooling in 2022.
26% of projects were devoted to creating spaces in the home that better meet lifestyle needs.
91% of homeowners say that their home needs either minor or major renovations.
The majority of men want to spend remodeling money on their living rooms, while most women would prefer to use those funds for a kitchen remodel.
40% of partners completely agree on their home improvement plans.
Between 2021 and 2022, there was a 7% increase in people allocating their commuting budgets to home costs.
As the number of projects completed increases, so does the cost of materials—some materials cost 400% more than they did before 2020.
52% of homeowners are concerned about the cost of their 2022 home improvement projects.
Our research shows that people across the country don’t spend evenly on home improvement. Costs vary based on location, homeowner demographics, and even the average age of homes in an area.
Millennials, who make up a small part of homeowners improving their homes, spend more on home improvements (an average of $11,377) than other generations.
The average amount spent on home improvement by Americans in 2021 was $10,341.
These states have the highest average cost per home improvement project:
North Carolina: $4,682
Georgia: $4,664
Missouri: $4,576
Texas: $4,282
Pennsylvania: $4,206
New York: $4,144
Illinois: $4,022
Florida: $3,889
California: $3,508
Ohio: $3,397
Home improvement spending grew the most in these cities:
Phoenix: 11.9%
San Antonio: 12.7%
Dallas: 7%
Oklahoma City: 9.2%
Kansas City, MO: 5.3%
According to a study from Harvard, these cities had the highest home improvement spending in 2019:
New York City: $10.2 billion
Los Angeles: $8.9 billion
Houston: $8.2 billion
Chicago: $8.1 billion
Washington D.C.: $7 billion
Dallas: $6.9 billion
Boston: $5.9 billion
Philadelphia: $5.5 billion
Denver: $5.2 billion
Seattle: $4.5 billion
While home improvements are a top priority for the majority of homeowners, a survey found it’s not the case for all.
Check out the following statistics, courtesy of the Joint Center for Housing Studies of Harvard:
20% of homeowners don’t spend any money maintaining their homes.
17% of American homeowners spent less than $500 improving their homes.
Single-family homeowners spent twice as much as condo owners.
Homeowners spent almost three times as much on home improvement compared to renters.
17% of home improvement spending is for replacing old or broken systems.
Homeowners with the smallest budgets spent 51% of their home improvement budget on replacements.
If you’ve considered starting a home project, there’s no better time than now. Read up on the latest home remodeling trends and ideas, then find the right contractor in your area who can help turn your summer home improvement dreams into a reality.
