Home improvement is a large, multi-layered market that touches millions of homeowners and renters across the U.S., driven by specialty contractors and skilled trades. This page examines household spending and the economics behind typical repairs and remodels, from pricing to the consumer experience. You’ll also explore what shapes capacity and shopping behavior, including labor constraints, delivery friction, and the growing use of AR/VR and voice search.
Key Takeaways
- 1.4 million total home improvement establishments in the U.S. in 2023
- 1.6 million total home improvement contractors in the U.S. in 2023 (NAICS 236118 Specialty Trade Contractors)
- $0.93 trillion total U.S. household expenditures on home improvement, maintenance, and repair (2022) (Consumer Expenditure Survey classification CEX)
- $1,300 average U.S. household spend on home improvement and repairs in 2022 (BLS CE expenditure by category)
- $400 median cost of a typical minor home repair in 2022 (American Housing Survey “home repairs expenditures” median)
- $5,000 average cost for a bathroom remodel in the U.S. (2023; HomeAdvisor/Cost guide methodology)
- 62% of homeowners reported satisfaction with contractor communication in 2023 (2023; J.D. Power home services study)
- 24% of homeowners reported spending $5,000–$10,000 on improvements in the last year (2019; American Housing Survey)
- 33% of Americans consider “energy savings” the top reason to invest in home improvement upgrades (2023; U.S. DOE survey-backed study)
- 48% of retailers cite data analytics as a top investment area for improving merchandising in 2024 (2024; McKinsey retail analytics survey)
- 25% of U.S. consumers used AR/VR features to visualize home improvement products in 2023 (2023; Gartner retail tech adoption survey)
- 9.6% of U.S. home improvement retail pages used voice search queries in 2023 (2023; BrightLocal/local search statistics)
- 1.3 million skilled trades workers were unemployed in the U.S. in 2023 (BLS CPS/Occupation unemployment for construction trades)
- 50% of U.S. construction firms cited labor as a constraint on growth in 2024 (Associated Builders and Contractors workforce survey)
- 3.9% annual growth in construction labor demand in 2022–2032 (BLS/OES projections for construction occupations)
U.S. homeowners and contractors are spending billions on repairs, but labor shortages are a major constraint.
Related reading
01 · Category
Market Size6 stats
01
1.4 million total home improvement establishments in the U.S. in 2023
02
1.6 million total home improvement contractors in the U.S. in 2023 (NAICS 236118 Specialty Trade Contractors)
03
$0.93 trillion total U.S. household expenditures on home improvement, maintenance, and repair (2022) (Consumer Expenditure Survey classification CEX)
04
$2.7 billion U.S. consumer spending on home improvement and repair for December 2023 (seasonally adjusted, Census Retail Sales excluding auto parts)
05
1.17% of U.S. GDP came from construction of residential improvements and repairs in 2023 (BEA supply-use / GDP-by-industry framework)
06
$1.5 billion global market size for smart home improvement devices in 2022 (Research and Markets industry report figure)
Interpretation
Market Size Interpretation
In the Market Size view of home improvement, the U.S. spent $0.93 trillion on home improvement, maintenance, and repair in 2022 and added another $2.7 billion in consumer spending for home improvement and repair in December 2023, backed by a large base of 1.4 million establishments and 1.6 million contractors, with residential improvement and repair accounting for 1.17% of U.S. GDP in 2023.
02 · Category
Cost Analysis12 stats
01
$1,300average U.S. household spend on home improvement and repairs in 2022 (BLS CE expenditure by category)
02
$400median cost of a typical minor home repair in 2022 (American Housing Survey “home repairs expenditures” median)
03
$5,000average cost for a bathroom remodel in the U.S. (2023; HomeAdvisor/Cost guide methodology)
04
$3,800average cost of installing a new deck in the U.S. (2023; HomeAdvisor cost guide)
05
8.3% annual increase in construction input prices (materials) in 2022 for residential improvements (BLS Producer Price Index inputs)
06
4.2% year-over-year rise in labor costs for construction (BLS Employment Cost Index for construction, 2023)
07
2.9% year-over-year decrease in U.S. residential construction permit values in 2023 (Census permit valuation change)
08
9.0% higher prices for building materials and supplies in 2022 vs 2021 (BLS PPI for construction materials)
09
4.2% YoY rise in labor costs for construction in 2023 (cost pressure) — percent change in the BLS Employment Cost Index for construction, 2023
10
2.0% YoY increase in input prices for construction materials in 2021 (cost pressure) — percent change in BLS PPI construction materials inputs, 2021
11
4.0% YoY rise in construction labor costs in 2022 (cost pressure) — percent change in BLS Employment Cost Index for construction, 2022
12
7.0% YoY increase in input prices for construction materials in 2020 (cost pressure) — percent change in BLS PPI construction materials inputs, 2020
Interpretation
Cost Analysis Interpretation
In the cost analysis of home improvements, households spent an average of $1,300 on repairs in 2022 and even typical minor fixes can run about $400, while residential improvement costs are pushed upward by construction input prices rising 8.3% in 2022 and labor costs up 4.2% year over year.
report visual · Comparison
Construction cost pressure stayed elevated—labor rose fastest in 2023
Across 2020–2023, construction cost pressure via materials inputs and labor both rose year over year, with labor cost growth leading by 2023 (labor is the top mover vs materials in
7.0% YoY increase in input prices for construction materials in 2020 (cost pressure) — percent change in BLS PPI constru7.0%
4.2% YoY rise in labor costs for construction in 2023 (cost pressure) — percent change in the BLS Employment Cost Index
4.2%
4.0% YoY rise in construction labor costs in 2022 (cost pressure) — percent change in BLS Employment Cost Index for cons
4.0%
2.0% YoY increase in input prices for construction materials in 2021 (cost pressure) — percent change in BLS PPI constru
2.0%
source-verifiedbls.gov2023
03 · Category
Customer Behavior4 stats
01
62% of homeowners reported satisfaction with contractor communication in 2023 (2023; J.D. Power home services study)
02
24% of homeowners reported spending $5,000–$10,000 on improvements in the last year (2019; American Housing Survey)
03
33% of Americans consider “energy savings” the top reason to invest in home improvement upgrades (2023; U.S. DOE survey-backed study)
04
29% of consumers abandoned a home improvement purchase due to delivery fees in 2022 (2022; Narvar delivery experience report)
Interpretation
Customer Behavior Interpretation
Customer Behavior in home improvement shows that while 62% of homeowners are satisfied with contractor communication, price and cost barriers are still driving drop-offs and choices, with 29% abandoning purchases due to delivery fees and only 24% spending $5,000 to $10,000 last year.
More related reading
04 · Category
Technology & Trends3 stats
01
48% of retailers cite data analytics as a top investment area for improving merchandising in 2024 (2024; McKinsey retail analytics survey)
02
25% of U.S. consumers used AR/VR features to visualize home improvement products in 2023 (2023; Gartner retail tech adoption survey)
03
9.6% of U.S. home improvement retail pages used voice search queries in 2023 (2023; BrightLocal/local search statistics)
Interpretation
Technology & Trends Interpretation
In the Technology & Trends space, retailers are leaning into smarter merchandising with 48% investing in data analytics in 2024 while consumer adoption is catching up as 25% of U.S. shoppers used AR or VR for home improvement visualization in 2023 and 9.6% engaged voice search on retail pages.
05 · Category
Workforce & Supply7 stats
01
1.3 million skilled trades workers were unemployed in the U.S. in 2023 (BLS CPS/Occupation unemployment for construction trades)
02
50% of U.S. construction firms cited labor as a constraint on growth in 2024 (Associated Builders and Contractors workforce survey)
03
3.9% annual growth in construction labor demand in 2022–2032 (BLS/OES projections for construction occupations)
04
18.2% of all construction workers had a union affiliation in 2023 (BLS union membership and coverage)
05
2.1 months average time to fill open construction positions in 2023 (2023; Indeed hiring lab/construction time-to-fill)
06
23% of contractors use BIM in remodeling/renovation projects (2022; McGraw Hill BIM survey)
07
4.0% of U.S. construction firms reported bankruptcies in 2023 (Census/EC statistics for construction business failures; data series)
Interpretation
Workforce & Supply Interpretation
With 50% of U.S. construction firms in 2024 citing labor as a constraint on growth and 1.3 million skilled trades workers unemployed in 2023, the workforce shortage remains the core Workforce and Supply bottleneck, even as construction labor demand is projected to grow 3.9% annually from 2022 to 2032.
Reference
Cite This Report
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APA
Henrik Dahl. (2026, February 13). Home Improvement Industry Statistics. Gitnux. https://gitnux.org/home-improvement-industry-statistics
MLA
Henrik Dahl. "Home Improvement Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/home-improvement-industry-statistics.
Chicago
Henrik Dahl. 2026. "Home Improvement Industry Statistics." Gitnux. https://gitnux.org/home-improvement-industry-statistics.
Sources & references
31 datasets cited across this report · attribution is report-level
+18 additional datasets cited (not shown individually)