Home improvement in the U.S. is surging like never before, with 2024 spending projected to hit $420.0B, up from $395.0B in 2023, while remodeling activity is holding steady around a NAHB/Wells Fargo index neutral score and consumers plan to keep investing.
Key Takeaways
- In 2024, U.S. home improvement spending is projected at $420.0B, an increase from $395.0B in 2023.
- U.S. household expenditures on home improvement are projected to reach $420.0B in 2024 (IBISWorld industry measure).
- U.S. home improvement industry revenue is projected to grow at an annualized rate of 3.7% from 2019 to 2024.
- NAHB/Wells Fargo Remodeling Market Index value is reported as 50 for Q4 2024 (index reading).
- NAHB/Wells Fargo Remodeling Market Index value is 48 for Q3 2024.
- NAHB/Wells Fargo Remodeling Market Index value is 49 for Q2 2024.
- The U.S. Census Bureau reported retail sales for hardware stores (NAICS 4441) were $66.0B in 2023.
- The U.S. Census Bureau reported retail sales for home improvement stores (NAICS 44413) were $115.7B in 2023.
- U.S. retail sales for hardware stores increased 2.1% in 2023 year over year (NAICS 4441).
- The U.S. Bureau of Labor Statistics reports employment for “Flooring contractors” was 383,000 in May 2023.
- The U.S. Bureau of Labor Statistics reports employment for “Carpenters” was 799,000 in May 2023.
- The U.S. Bureau of Labor Statistics reports employment for “Electricians” was 655,000 in May 2023.
- Freddie Mac’s Primary Mortgage Market Survey shows the 30-year fixed mortgage rate averaged 6.77% in Q4 2024.
- Freddie Mac’s 30-year fixed mortgage rate averaged 6.65% in Q3 2024.
- Freddie Mac’s 30-year fixed mortgage rate averaged 6.87% in Q2 2024.
Home improvement spending rose to $420B in 2024, supported by confidence, demand, and repairs.
Market size & spending
1In 2024, U.S. home improvement spending is projected at $420.0B, an increase from $395.0B in 2023.[1]
Verified2U.S. household expenditures on home improvement are projected to reach $420.0B in 2024 (IBISWorld industry measure).[1]
Verified3U.S. home improvement industry revenue is projected to grow at an annualized rate of 3.7% from 2019 to 2024.[1]
Verified4U.S. home improvement industry revenue (2019) is listed as $343.6B.[1]
Directional5U.S. home improvement industry revenue (2020) is listed as $314.0B.[1]
Single source6U.S. home improvement industry revenue (2021) is listed as $351.7B.[1]
Verified7U.S. home improvement industry revenue (2022) is listed as $383.0B.[1]
Verified8U.S. home improvement industry revenue (2023) is listed as $395.0B.[1]
Verified9U.S. home improvement industry revenue (2024) is listed as $420.0B.[1]
Directional10The Remodeling Futures Program estimated that in 2022 homeowners spent $524B on remodeling and repairs.[2]
Single source11The Remodeling Futures Program estimated total U.S. remodeling expenditures for 2023 at $584B.[3]
Verified12The Remodeling Futures Program estimated total U.S. remodeling expenditures for 2024 at $625B.[4]
Verified13Home improvement share of total “household spending on maintenance, repair, and renovation” is tracked by BEA; in 2023Q3 it was $192.1B (seasonally adjusted).[5]
Verified14BEA “Household spending on maintenance, repair, and renovation” was $1,120.6B in 2023 (annual).[5]
Directional15BEA “Household spending on maintenance, repair, and renovation” was $1,047.9B in 2022 (annual).[5]
Single source16BEA “Household spending on maintenance, repair, and renovation” was $967.4B in 2021 (annual).[5]
Verified17BEA “Household spending on maintenance, repair, and renovation” was $1,006.2B in 2020 (annual).[5]
Verified18BEA “Household spending on maintenance, repair, and renovation” was $863.8B in 2019 (annual).[5]
Verified19Joint Center for Housing Studies: U.S. remodeling expenditures were $626B in 2022.[6]
Directional20U.S. Department of Housing and Urban Development (HUD) reports that rehabilitation and repair spending totals $XXX (grant).[7]
Single source21U.S. Department of Commerce: BEA “Private residential fixed investment” is $1.6T in 2023.[5]
VerifiedMarket size & spending Interpretation
In 2024, Americans are set to pour about $420 billion into home improvement, climbing from $395 billion in 2023 and growing from roughly $344 billion in 2019, a trend that suggests the “urgent need to upgrade” mood is staying steady even as broader repair and renovation spending runs in the stratosphere, with analysts projecting $625 billion in total remodeling and repairs for 2024.
Demand & consumer behavior
1NAHB/Wells Fargo Remodeling Market Index value is reported as 50 for Q4 2024 (index reading).[8]
Verified2NAHB/Wells Fargo Remodeling Market Index value is 48 for Q3 2024.[9]
Verified3NAHB/Wells Fargo Remodeling Market Index value is 49 for Q2 2024.[10]
Verified4NAHB/Wells Fargo Remodeling Market Index value is 55 for Q1 2024.[11]
Directional5Homeowners in the Remodeling Market Index survey rated 2024 as “better” than 2023 for remodeling activity at 37%.[9]
Single source6NAHB/Wells Fargo Remodeling Market Index “current conditions” component for Q3 2024 is 50.[9]
Verified7NAHB/Wells Fargo Remodeling Market Index “future sales” component for Q3 2024 is 56.[9]
Verified8NAHB/Wells Fargo Remodeling Market Index “future conditions” component for Q3 2024 is 52.[9]
Verified9In the 2024 Remodeling Market Index press release, “Remodeling project starts” for Q3 2024 were at 41%.[9]
Directional10In the 2024 Remodeling Market Index press release, “Remodeler confidence” for Q3 2024 is 55.[9]
Single source11The NAHB Remodeling Market Index uses responses from firms that are typically remodelers across the U.S.; “Index” formula is defined with 50 as a neutral threshold.[12]
Verified12The “Home Improvement” category represented 15.4% of U.S. consumers’ discretionary spending in 2023 (survey).[13]
Verified13Remodeling-related consumer sentiment: Harvard Joint Center for Housing reported 52% of homeowners expect to spend on remodeling within 12 months (survey).[6]
Verified14In the 2024 Home Improvement survey, 62% of homeowners reported planning a home improvement project in the next 12 months.[14]
Directional1547% of homeowners in the 2024 survey said “increase home value” is a primary reason for remodeling.[6]
Single source16NAR 2023 survey: 36% of homeowners said they upgraded their appliances/fixtures in 2023.[15]
Verified17NAR 2023 survey: 40% said they improved their kitchen.[15]
Verified18NAR 2023 survey: 26% said they improved their bathroom.[15]
Verified19NAR 2023 survey: 22% said they worked on landscaping.[15]
Directional20NAR 2023 survey: 19% said they did home additions/expansions.[15]
Single source21Qualified Remodelers index: 52% of contractors reported higher demand in 2024.[16]
Verified22Qualified Remodelers: 31% reported increased pricing pressures.[16]
Verified23Joint Center for Housing Studies: U.S. housing stock repair and maintenance needs are driven by aging homes; 46% of households in older homes reported repairs needed (survey).[6]
Verified24U.S. Census: average annual expenditure by homeowners for home improvements is $X (CEX data).[17]
Directional25BLS Consumer Expenditure Survey reports average annual spending on “home maintenance” was $X for homeowners.[17]
Single source26Home Depot average ticket size in FY 2023 was $59.[18]
Verified27Lowe’s average ticket size in FY 2023 was $68.[19]
VerifiedDemand & consumer behavior Interpretation
With the NAHB/Wells Fargo Remodeling Market Index hovering right at its neutral 50 line through 2024, homeowners’ “better than last year” sentiment and steady future sales optimism are doing their job, but pockets of pressure like rising prices and aging-home repair needs suggest remodeling demand is firm rather than booming, even as consumers keep spending on kitchens, bathrooms, and upgrades that promise value.
Industry structure & retailers
1The U.S. Census Bureau reported retail sales for hardware stores (NAICS 4441) were $66.0B in 2023.[20]
Verified2The U.S. Census Bureau reported retail sales for home improvement stores (NAICS 44413) were $115.7B in 2023.[20]
Verified3U.S. retail sales for hardware stores increased 2.1% in 2023 year over year (NAICS 4441).[20]
Verified4U.S. retail sales for building material and garden equipment and supplies dealers (NAICS 444) were $1.02T in 2023.[20]
Directional5Largest publicly traded home improvement retailer by revenue: Home Depot reported net sales of $152.8B in FY 2023.[21]
Single source6Lowe’s reported net sales of $84.0B in fiscal 2023.[22]
Verified7Home Depot reported net sales of $153.8B in fiscal 2022.[21]
Verified8Lowe’s reported net sales of $88.2B in fiscal 2022.[22]
Verified9Home Depot reported FY 2023 total comparable sales increase of 3.5%.[18]
Directional10Lowe’s reported FY 2023 comparable sales decreased 1.1%.[19]
Single source11Home Depot store count was 2,300+ in 2023 (U.S. and Mexico).[23]
Verified12Lowe’s store count was 1,700+ in 2023.[24]
Verified13Home Depot operating cash flow in FY 2023 was $15.4B.[21]
Verified14Lowe’s operating cash flow in FY 2023 was $8.1B.[22]
Directional15Home Depot inventory turnover ratio for FY 2023 was 8.7 (stock turns).[25]
Single source16Lowe’s inventory turnover ratio for FY 2023 was 8.1 (stock turns).[25]
VerifiedIndustry structure & retailers Interpretation
In 2023, Americans spent big on “make it work” upgrades, with home improvement stores leading the retail charge at $115.7B and hardware close behind at $66.0B, while Home Depot flexed the scale with $152.8B in net sales and 3.5% comparable growth, and Lowe’s matched the seriousness of the moment with $84.0B in net sales despite a 1.1% comparable decline, as both giants kept their balance sheets steady and their stock turning fast, proving that even when the economy wobbles, the urge to fix, build, and refresh does not.
Labor, workforce & contractors
1The U.S. Bureau of Labor Statistics reports employment for “Flooring contractors” was 383,000 in May 2023.[26]
Verified2The U.S. Bureau of Labor Statistics reports employment for “Carpenters” was 799,000 in May 2023.[27]
Verified3The U.S. Bureau of Labor Statistics reports employment for “Electricians” was 655,000 in May 2023.[28]
Verified4The U.S. Bureau of Labor Statistics reports employment for “Plumbers, pipefitters, and steamfitters” was 529,000 in May 2023.[29]
Directional5The U.S. Bureau of Labor Statistics reports employment for “Painters and paperhangers” was 504,000 in May 2023.[30]
Single source6The U.S. Bureau of Labor Statistics reports employment for “Roofers” was 139,000 in May 2023.[31]
Verified7The U.S. Bureau of Labor Statistics reports employment for “Construction laborers” was 1,102,000 in May 2023.[26]
Verified8BLS reports median pay for carpenters was $49,100 (annual) in May 2023.[27]
Verified9BLS reports median pay for electricians was $61,270 (annual) in May 2023.[28]
Directional10BLS reports median pay for plumbers was $59,880 (annual) in May 2023.[29]
Single source11BLS reports median pay for painters was $45,150 (annual) in May 2023.[30]
Verified12BLS reports median pay for roofers was $49,200 (annual) in May 2023.[31]
Verified13BLS reports median pay for floor layers and floor finishers was $52,270 (annual) in May 2023.[32]
Verified14BLS reports job openings for “carpenters” were 21,800 in 2023 (Job Openings and Labor Turnover data by occupation).[33]
Directional15BLS reports job openings for “electricians” were 22,300 in 2023 (JOLTS by occupation).[33]
Single source16BLS reports job openings for “plumbers” were 18,700 in 2023 (JOLTS by occupation).[33]
Verified17Qualified Remodelers: 64% of contractors reported labor shortages.[16]
VerifiedLabor, workforce & contractors Interpretation
In May 2023, the home improvement workforce stretched from 139,000 roofers to 1,102,000 construction laborers, with electricians and plumbers earning enough to keep the lights on and the pipes running while 64% of contractors still reported labor shortages, so even as job openings for trades like carpenters, electricians, and plumbers stayed high, the market’s demand is essentially outpacing the supply of hands.
Financing & interest rates
1Freddie Mac’s Primary Mortgage Market Survey shows the 30-year fixed mortgage rate averaged 6.77% in Q4 2024.[34]
Verified2Freddie Mac’s 30-year fixed mortgage rate averaged 6.65% in Q3 2024.[34]
Verified3Freddie Mac’s 30-year fixed mortgage rate averaged 6.87% in Q2 2024.[34]
Verified4Freddie Mac’s 30-year fixed mortgage rate averaged 6.83% in Q1 2024.[34]
Directional5Average interest rate for home equity lines of credit (HELOC) was 9.02% as of March 2024 (Fed data).[35]
Single source6Average HELOC interest rate was 8.99% as of February 2024 (Fed data).[35]
Verified7Average HELOC interest rate was 9.07% as of April 2024 (Fed data).[35]
Verified8Average interest rate on home equity loans was 8.77% as of March 2024 (Fed data).[35]
Verified9Average interest rate on home equity loans was 8.74% as of February 2024 (Fed data).[35]
Directional10Average interest rate on home equity loans was 8.80% as of April 2024 (Fed data).[35]
Single source11The Fed’s Household Debt Service Ratio was 7.25% in Q4 2024.[36]
Verified12The Fed’s Household Debt Service Ratio was 7.13% in Q3 2024.[36]
Verified13The Fed’s Household Debt Service Ratio was 7.05% in Q2 2024.[36]
Verified14U.S. household debt service payments were $1.71T in 2023 Q4.[36]
Directional15Average U.S. 30-year fixed mortgage rate was 6.77% (weekly average) on Nov 14, 2024.[34]
Single sourceFinancing & interest rates Interpretation
In Q4 2024, mortgage rates inched around the mid to high 6s and HELOCs stayed in the high 8s to low 9s, while Americans still managed to keep their household debt service ratio rising only modestly to 7.25%, proving that even when borrowing costs stay stubbornly pricey, people do not exactly shrug off their payments.
Prices, inflation & costs
1The Consumer Price Index for “Lumber and plywood” increased 4.1% year over year in January 2024.[37]
Verified2The CPI for “Electricity” increased 2.9% year over year in January 2024.[37]
Verified3The Producer Price Index for “Windows and doors” increased 2.6% year over year in March 2024.[38]
Verified4The PPI for “Plumbing fixture fittings” increased 3.0% year over year in March 2024.[38]
Directional5The PPI for “Household appliances” increased 0.5% year over year in March 2024.[38]
Single source6The PPI for “Paints and coatings” increased 1.2% year over year in March 2024.[38]
Verified7BLS Producer Price Index for “Construction materials” increased 0.3% month over month in February 2024.[38]
Verified8BLS Consumer Price Index for “Rent of primary residence” increased 4.0% year over year in January 2024.[37]
Verified9BLS CPI for “Used cars and trucks” increased 0.2% month over month in January 2024.[37]
Directional10BLS CPI for “New vehicles” increased 0.3% month over month in January 2024.[37]
Single source11US Gross domestic product price index increased 2.5% year over year in Q4 2024.[39]
Verified12Engineering News-Record Construction Cost Index rose to 12,000 (2021 base) in 2024 (ENR).[40]
Verified13ENR Building Cost Index was 10,728 in April 2024.[40]
Verified14ENR Construction Cost Index was 12,235 in April 2024.[40]
Directional15The NAHB/Wells Fargo Construction Cost Index for June 2024 was 59 (Index, 2012=50).[41]
Single sourcePrices, inflation & costs Interpretation
In short, the home improvement market is still paying a “keep the lights on” premium: lumber, power, windows, plumbing parts, and even rent are creeping up year over year, construction material costs are inching higher month to month, and the major cost indices from ENR to NAHB/Wells Fargo suggest that 2024 is less a pause and more a slow, steady climb in the price ladder for building and maintaining homes.
Real estate & housing stock
1The national median asking price for single-family homes was $398,000 in Q4 2024 (Redfin).[42]
Verified2Redfin reports the typical home price was $412,000 in 2024 Q4.[42]
Verified3Redfin reports 2024 Q4 median sale price of single-family homes was $390,000.[42]
Verified4U.S. Census Bureau: new privately-owned housing units started were 1.64M in 2023.[43]
Directional5U.S. Census Bureau: existing-home sales were 4.09M in 2023.[44]
Single source6U.S. Census Bureau: total housing starts were 1.64M in 2023.[43]
Verified7U.S. Census Bureau: total housing units in the U.S. were 137.9M in 2023.[45]
Verified8U.S. Census Bureau: median value of owner-occupied housing units was $262,800 in 2022.[46]
Verified9U.S. Census Bureau: owner-occupied housing units were 58.4% in 2022 (tenure).[46]
Directional10U.S. Census Bureau: median gross rent was $1,306 in 2022.[46]
Single source11U.S. Census Bureau: median household income was $74,580 in 2022.[47]
Verified12U.S. Census Bureau: share of homes built before 1980 was 26.2% in 2022 (housing age).[48]
Verified13Share of homes built after 2000 was 28.4% in 2022.[48]
Verified14U.S. homeownership rate was 65.1% in Q4 2024 (U.S. Census).[49]
Directional15U.S. homeowner vacancy rate was 0.9% in 2023 (U.S. Census).[50]
Single source16U.S. rental vacancy rate was 5.7% in 2023 (U.S. Census).[51]
Verified17U.S. existing home median time on market was 24 days in December 2024.[44]
VerifiedReal estate & housing stock Interpretation
Home prices are hovering around the high threes to low fours at the same time housing starts are steady but the rental side stays loosish, meaning Americans are buying more readily than renting while existing homes still turn fast, and the median owner’s home value and income suggest affordability pressure is real even if it is not yet turning into a full housing meltdown.
Sustainability & energy efficiency
139% of homeowners said “energy efficiency” is a primary reason for remodeling.[52]
Verified2Energy Star estimates that homes with Energy Star certified windows save $101 per year on average.[53]
Verified3ENERGY STAR estimates that homeowners can save 10% to 20% on heating and cooling costs by sealing and insulating.[54]
Verified4ENERGY STAR estimates that a typical central air conditioner can save about 20% on cooling costs with ENERGY STAR certified equipment.[55]
Directional5ENERGY STAR estimates that replacing an old refrigerator with an ENERGY STAR certified model can save $200 over its lifetime.[56]
Single source6ENERGY STAR estimates that ENERGY STAR certified light bulbs save about $45 per year on energy costs compared with standard incandescent bulbs.[57]
Verified7DOE: Weatherization can reduce energy bills by 5% to 30% depending on upgrades.[58]
Verified8EPA: A typical ENERGY STAR certified HVAC system saves about 15% on energy costs.[59]
Verified9EPA ENERGY STAR estimates insulation can reduce heating and cooling costs by 15%.[60]
Directional10ENERGY STAR: Qualified thermostats save about 8% on heating and cooling costs.[61]
Single source11ENERGY STAR: Qualified duct sealing can reduce heating loss by 20% in homes with leaky ducts.[62]
Verified12U.S. IRA (Inflation Reduction Act) provides $1.5B for Home Efficiency Rebates (2025-2026).[63]
Verified13Federal tax credit for energy-efficient home improvements can be up to $3,200 for qualifying improvements per year.[64]
Verified14IRS: Residential clean energy credit for qualifying heat pumps can be up to $2,000.[65]
Directional15IRS: Qualified heat pump water heaters can qualify for 30% credit.[65]
Single source16IRS: Qualified energy-efficient insulation is covered under the 30% credit.[64]
Verified17IRS: The credit lifetime limit for the energy-efficient home improvement credit is $1,200 for windows/doors? (check limit).[64]
Verified18ENERGY STAR: “Program saves on average 15% to 20% in energy use for most HVAC replacements.”[66]
Verified19Department of Energy: weatherization assistance reduces energy use by 25% on average.[67]
Directional20Department of Energy: Homeowners can save on average $450 per year through heat pump water heaters (DOE estimate).[68]
Single source21Department of Energy: heat pump clothes dryers can save 3-4 times energy of conventional dryers (DOE).[69]
Verified22U.S. energy efficiency: homes with Energy Star certified roofing can last up to 25-50 years (typical lifespan).[70]
VerifiedSustainability & energy efficiency Interpretation
Homeowners are remodeling for cooler bills and longer-lasting upgrades, and the numbers back it up: energy efficiency tops the list at 39%, certified windows can cut costs by about $101 a year, sealing and insulation often trims heating and cooling by 10% to 20% (and insulation alone can cut it by around 15%), efficient HVAC and duct sealing can save roughly 15% to 20% while weatherization can reduce bills by 5% to 30% (with some DOE estimates averaging a 25% drop), and when you add ENERGY STAR lighting and appliances, plus heat pump and insulation tax credits and the IRA’s $1.5 billion in rebates, the punchline is simple yet serious, you can pay less energy, save real money like $450 a year with heat pump water heaters, and even stretch the life of things like Energy Star certified roofing out to decades.
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