Home Improvement Spending Increased Around 45% in 25 Years—Here's How It's Grown
Find out why home improvement spending has skyrocketed since 1996
New homeowners quickly learn that property taxes and home insurance premiums aren't the only expenses to expect. After settling in, it's natural to start considering updates. Whether cosmetic changes, like repainting the living room to match your style, or a larger project, like adding a bathroom to the second floor, home improvement costs can add up quickly.
Data shows that younger homeowners might be more likely to focus on home improvement projects: According to Buildfax and the U.S. Census Bureau American Community Survey, metro areas with more significant numbers of people under 35 filed more remodeling permits.
Current events can also affect the number of homeowners taking on remodels. Data from the U.S. Bureau of Labor Statistics and the U.S. Census Bureau reveals that sales at home improvement stores and professional remodeling companies recovered quickly after the onset of the COVID-19 pandemic. Though these businesses experienced an initial dip, the resurgence in popularity likely reflects the number of people looking for projects to take on around the house while sheltering in place.
Of course, remodeling is nothing new: Americans have spent more than $7 trillion on home improvements since 1996. The cost of materials and labor due to rising inflation, supply chain delays, and inventory shortages are just some of the challenges homeowners face today. To understand how home improvement spending has changed over the past 25 years, Angi collected data from the Census Bureau's American Retail Trade Survey in 2020 and its sales data from retailers in the "building materials and garden equipment and supplies dealers" segment. The sales amounts were adjusted to reflect 2020 dollars using Consumer Price Index figures from the Federal Reserve Bank of Minneapolis.
CHOOSE THE IDEAL WINDOW
Learn all about what makes a bay window different from a bow window, and choose the right window during a remodel.
1996–2000
Average sales: $321 billion
2000: $344 billion
1999: $339 billion
1998: $321 billion
1997: $308 billion
1996: $291 billion
CLEANING UP WITH BAKING SODA & VINEGAR
Baking soda and vinegar are commonly used for tough cleaning jobs. Discover tips about how to use these ingredients in a practical cleaning routine.
2001–2005
Average sales: $382 billion (18.9% change since 2000)
2005: $425 billion
2004: $405 billion
2003: $371 billion
2002: $358 billion
2001: $350 billion
2006–2010
Average sales: $363 billion (-4.7% change since 2005)
2010: $309 billion
2009: $316 billion
2008: $363 billion
2007: $401 billion
2006: $429 billion
AFFORDABLE KITCHEN CHANGES
A comprehensive guide to keeping a kitchen remodel cost down and what to expect when redesigning a kitchen.
2011–2015
Average sales: $331 billion (-8.8% change since 2010)
2015: $354 billion
2014: $343 billion
2013: $333 billion
2012: $317 billion
2011: $310 billion
COST-EFFECTIVE BATHROOM REMODELING
Discover the factors that influence a bathroom remodel cost and read about how to manage expenses during a bathroom remodel.
2016–2020
Average sales: $382 billion (15.4% change since 2015)
2020: $422 billion
2019: $378 billion
2018: $379 billion
2017: $369 billion
2016: $364 billion