Home improvement remodeling is being shaped by tight labor markets, shifting homeowner priorities, and rising project costs. In 2023, 55% of U.S. homeowners took on a remodeling project averaging $15,000, while kitchen remodel spending climbed to $36,000. We’ll break down what’s driving budgets, which spaces are most popular, and how industry capacity is responding.
Key Takeaways
- In 2023, U.S. households spent an average of $13,500 on home improvements, up 1% from 2022.
- 55% of U.S. homeowners undertook a remodeling project in 2023, averaging $15,000 per project.
- Average kitchen remodel cost in the U.S. rose to $36,000 in 2023, a 7% increase YoY.
- The U.S. had 130,000 professional remodeling firms in 2023, employing 951,000 workers.
- Remodeling contractors saw average revenue of $2.1 million per firm in 2023.
- 75% of U.S. remodeling firms reported labor shortages as top challenge in 2023.
- In 2023, total U.S. home improvement and repairs spending hit $454 billion, up 2.5% from 2022, driven by aging housing stock needs.
- The global home improvement market was valued at $747.51 billion in 2022 and is projected to grow at a CAGR of 5.2% from 2023 to 2030.
- U.S. remodeling expenditures grew by 15.6% in 2021 to $420 billion, the largest single-year gain on record.
- In 2023, kitchen remodels were the most popular project at 28% of U.S. homeowners undertaking them.
- Bathroom additions averaged 40 sq ft costing $52,000 in 2023, 35.3% ROI.
- 22% of U.S. remodels in 2023 were deck constructions or replacements.
- In 2023, 65% of U.S. homeowners prioritized sustainable materials in remodels.
- Smart home device integrations expected in 75% of remodels by 2027.
- Aging-in-place remodels projected to grow 15% annually to 2030.
Related reading
01 · Category
Consumer Spending29 stats
01
In 2023, U.S. households spent an average of $13,500on home improvements, up 1% from 2022.
02
55% of U.S. homeowners undertook a remodeling project in 2023, averaging $15,000 per project.
03
Average kitchen remodel cost in the U.S. rose to $36,000in 2023, a 7% increase YoY.
04
U.S. consumers allocated 28% of 2023 home improvement budgets to kitchens, totaling $127 billion.
05
42% of homeowners aged 18-34 spent over $10,000 on remodels in 2023.
06
Annual U.S. household spending on maintenance and repairs averaged $3,300in 2023.
07
Bathroom remodels cost U.S. homeowners an average $25,200in 2023, up 5% from 2022.
08
68% of U.S. spending on home improvements in 2023 was for discretionary upgrades, not necessities.
09
Millennials (ages 28-43) represented 45% of total U.S. remodeling spending in 2023 at $204 billion.
10
Average deck addition cost $24,000in 2023, with ROI of 65.9% per Remodeling Magazine.
11
U.S. Baby Boomers spent $12,800on average for remodels in 2023, focusing on aging-in-place.
12
31% of 2023 U.S. home improvement dollars went to replacements, averaging $8,500 per household.
13
Primary bathroom remodels averaged $29,500in 2023, with 72% cost recouped upon resale.
14
High-income U.S. households (>$150k) spent 3x more on remodels, averaging $28,000 in 2023.
15
Window replacements cost $650per unit installed in 2023, with 70% national ROI.
16
52% of U.S. homeowners planned to spend $5,000-$20,000 on 2024 remodels, per 2023 surveys.
17
Garage door replacements averaged $4,800in 2023, offering 194% ROI in Western U.S.
18
U.S. renters spent $1,200on average for home improvements in 2023, up 10% YoY.
19
Manufactured siding installation cost $17,600average in 2023, 95.5% ROI.
20
37% of spending by Gen Z homeowners in 2023 was on outdoor living spaces, avg $7,500.
21
Minor kitchen remodels cost $26,800in 2023, recouping 81.2% value at resale.
22
U.S. suburban homeowners spent 22% more on remodels than urban in 2023, avg $16,200.
23
Roofing replacements averaged $26,000in 2023, with 61.1% ROI nationally.
24
46% of U.S. households delayed remodels in 2023 due to costs, spending avg $9,000 instead.
25
Entry door replacements cost $2,500avg in 2023, 72.7% ROI.
26
Backup power generators installed for $28,100avg in 2023, 130% ROI in Northeast.
27
U.S. kitchen remodels by homeowners averaged 14 weeks duration in 2023, costing $40,000.
28
29% of 2023 spending was on energy-efficient upgrades, avg $4,200 per project.
29
House media room additions cost $52,400avg in 2023, 58.1% ROI.
02 · Category
Industry Professionals25 stats
01
The U.S. had 130,000 professional remodeling firms in 2023, employing 951,000 workers.
02
Remodeling contractors saw average revenue of $2.1 million per firm in 2023.
03
75% of U.S. remodeling firms reported labor shortages as top challenge in 2023.
04
Average remodeling contractor profit margin was 12.4% in 2023, down from 14% in 2022.
05
62% of firms specialized in single-family homes, generating 85% of industry revenue 2023.
06
Kitchen/bath specialists comprised 28% of remodeling firms, with avg $3.5M revenue 2023.
07
41% of contractors used subcontractors for 70%+ of projects in 2023.
08
Average hourly wage for remodel carpenters was $28.50in U.S. 2023.
09
88% of firms planned to hire more workers in 2024, per 2023 end-of-year survey.
10
Women owned 15% of U.S. remodeling businesses in 2023, up from 11% in 2019.
11
Top 10% of remodelers had revenues over $10M, 5% of firms but 40% market share 2023.
12
55% of contractors reported material cost increases >10% impacting 2023 profits.
13
Licensed remodelers numbered 250,000 in California alone in 2023.
14
Average project backlog for remodelers was 4.2 months in Q4 2023.
15
67% of firms offered design-build services, avg 25% premium pricing 2023.
16
Electricians in remodeling earned median $62,000annually in 2023.
17
23% of remodeling firms failed or closed in 2023 due to economic pressures.
18
Multi-trade contractors grew to 35% of firms, handling 60% complex projects 2023.
19
Plumbers avg wage $30/hour in residential remodeling, 2023 BLS data.
20
72% of firms used software for estimating, up from 50% in 2019, per 2023 survey.
21
Veteran-owned remodeling businesses rose to 8% in 2023.
22
Average insurance cost for remodelers was $18,000/year, 9% of expenses 2023.
23
49% of contractors cited supply chain delays as top issue for 2023 projects.
24
Roofing contractors avg revenue $1.8M, 12% industry segment 2023.
25
81% of firms required college-educated project managers in 2023 hires.
03 · Category
Market Size & Growth30 stats
01
In 2023, total U.S. home improvement and repairs spending hit $454 billion, up 2.5% from 2022, driven by aging housing stock needs.
02
The global home improvement market was valued at $747.51 billion in 2022 and is projected to grow at a CAGR of 5.2% from 2023 to 2030.
03
U.S. remodeling expenditures grew by 15.6% in 2021 to $420 billion, the largest single-year gain on record.
04
The home improvement industry in North America accounted for 35% of the global market share in 2023, valued at approximately $285 billion.
05
From 2019 to 2023, annual U.S. home remodeling spending averaged $445 billion, with a peak of $480 billion in 2022.
06
Europe's home improvement market reached €312 billion in 2022, growing at 4.8% CAGR since 2017.
07
The U.S. DIY home improvement segment was worth $58 billion in 2023, comprising 13% of total spending.
08
Projected U.S. remodeling market to reach $553 billion by 2026, with a 3.1% CAGR from 2023.
09
Asia-Pacific home improvement market grew 6.5% in 2023 to $220 billion, led by China and India urbanization.
10
In 2022, U.S. spending on home improvements and repairs increased 8.9% nominally to $480 billion.
11
The professional remodeling sector in the U.S. generated $394 billion in 2023, 87% of total market.
12
Global smart home improvement market size was $88.3 billion in 2023, expected to grow at 27.3% CAGR to 2030.
13
U.S. home improvement retail sales reached $1.02 trillion in 2023, including big-box and specialty stores.
14
Canadian home renovation market valued at CAD 45 billion in 2023, up 4% from prior year.
15
U.S. remodeling activity surged 50% from 2017 to 2022, reaching historic highs before moderating.
16
Latin America home improvement market hit $95 billion in 2023, with Brazil leading at 40% share.
17
In 2023, U.S. multifamily remodeling spending was $45 billion, 10% of total market.
18
UK home improvement sector grew to £37 billion in 2023, fueled by energy efficiency upgrades.
19
Australian residential construction and remodeling market valued at AUD 120 billion in FY2023.
20
From 2020-2023, U.S. home improvement e-commerce sales grew 25% annually to $120 billion.
21
Middle East & Africa home improvement market reached $55 billion in 2023, CAGR 5.8% since 2018.
22
U.S. replacement remodeling projects accounted for 80% of $454 billion total in 2023.
23
In 2023, Germany's home improvement market was €48 billion, with 3.2% growth amid inflation.
24
U.S. senior housing remodeling segment grew 12% in 2023 to $60 billion.
25
Global sustainable home improvement market projected at $250 billion by 2028, CAGR 7.1%.
26
France home improvement spending hit €55 billion in 2023, up 2.7% YoY.
27
U.S. vacation home remodeling expenditures reached $25 billion in 2023.
28
Italy's home renovation market valued at €28 billion in 2023, boosted by tax incentives.
29
From 2022-2023, U.S. home improvement inflation-adjusted spending fell 5.2% to $454 billion.
30
China's home improvement market exploded to RMB 1.5 trillion ($210 billion) in 2023.
Interpretation
Market Size & Growth Interpretation
U.S. home improvement spending reached $454 billion in 2023 and is still climbing at 2.5% year over year, reflecting how steady demand from an aging housing stock is fueling continued market growth alongside a global expansion projected at a 5.2% CAGR through 2030.
More related reading
04 · Category
Remodeling Projects25 stats
01
In 2023, kitchen remodels were the most popular project at 28% of U.S. homeowners undertaking them.
02
Bathroom additions averaged 40 sq ft costing $52,000in 2023, 35.3% ROI.
03
22% of U.S. remodels in 2023 were deck constructions or replacements.
04
Roofing replacements comprised 12% of all U.S. improvement projects in 2023.
05
Window and door replacements made up 18% of 2023 U.S. spending on projects.
06
15% of homeowners added home offices in 2023 remodels, avg cost $15,000.
07
Siding replacements were top exterior project, 9% of 2023 remodels.
08
Universal design remodels for accessibility rose 20% in 2023 to 8% of projects.
09
Outdoor kitchen additions surged 25% in popularity for 2023 remodels.
10
11% of 2023 projects focused on basement remodels, avg $55,000 cost.
11
HVAC system replacements accounted for 7% of U.S. remodel spending in 2023.
12
Primary bedroom additions cost $162,000avg, 57.4% ROI in 2023.
13
24% of remodels included smart home tech integrations in 2023.
14
Garage additions were 5% of projects, costing $96,000 avg in 2023.
15
Energy-efficient window installs topped 14% of exterior remodels in 2023.
16
19% of 2023 kitchen remodels featured quartz countertops.
17
Bathroom remodels with walk-in showers rose to 62% of projects in 2023.
18
Landscape projects comprised 16% of all outdoor remodels in 2023.
19
Whole-house remodels averaged $150,000+ and were 3% of large projects in 2023.
20
28% of U.S. homeowners replaced flooring in remodels during 2023.
21
Attic insulation projects yielded 107% ROI, popular in 10% of energy remodels 2023.
22
35% of remodels included painting, interior/exterior, as top low-cost upgrade 2023.
23
Steel entry doors replaced in 8% of front exterior projects, 188% ROI West 2023.
24
Closet remodels with systems cost $7,600avg, part of 6% bedroom upgrades 2023.
25
Solar panel installations grew 30% in remodel projects to 4% share in 2023.
05 · Category
Trends & Forecasts19 stats
01
In 2023, 65% of U.S. homeowners prioritized sustainable materials in remodels.
02
Smart home device integrations expected in 75% of remodels by 2027.
03
Aging-in-place remodels projected to grow 15% annually to 2030.
04
Energy-efficient upgrades forecasted to capture 25% of $553B market by 2026.
05
Outdoor living spaces remodels to rise 20% in 2024 per Houzz forecast.
06
DIY projects expected to decline to 10% of market by 2025 from 13% in 2023.
07
Kitchen island additions forecasted in 40% of kitchen remodels by 2025.
08
EV charger installations to surge 50% in garage remodels 2024-2026.
09
70% of millennials plan remodels within 5 years of purchase, per 2023 survey.
10
Home office permanency drives 18% growth in that segment through 2025.
11
Quartz countertops to dominate 55% of kitchen installs by 2026.
12
Net-zero home retrofits projected at $100B annually by 2030.
13
48% of homeowners anticipate higher spending in 2024 vs 2023.
14
Bathroom spa features like rain showers in 35% of remodels by 2025 forecast.
15
Prefab modular remodel components to grow 12% CAGR to 2028.
16
60% of remodels to include ADUs by 2030 in suburban areas.
17
Matte black fixtures trend in 42% of 2024 bathroom projects.
18
Virtual reality design tools adopted by 50% of firms by 2025.
19
Landscape lighting upgrades in 25% of outdoor projects 2024.
Reference
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APA
Ryan Townsend. (2026, February 13). Home Improvement Remodeling Industry Statistics. Gitnux. https://gitnux.org/home-improvement-remodeling-industry-statistics
MLA
Ryan Townsend. "Home Improvement Remodeling Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/home-improvement-remodeling-industry-statistics.
Chicago
Ryan Townsend. 2026. "Home Improvement Remodeling Industry Statistics." Gitnux. https://gitnux.org/home-improvement-remodeling-industry-statistics.
Sources & references
39 datasets cited across this report · attribution is report-level