Home improvement spending hit $204 billion in 2023, yet the pressure points are changing fast. Roofing, repairs, and exterior upgrades are pulling more demand, while costs and interest rates keep reshaping how projects get financed and executed. From labor shortages to online bid gathering and new technology like project management software, these 2025 and 2024 benchmarks help explain exactly where homeowners and contractors are putting their money next.
Key Takeaways
- Home improvement market demand shifted toward exterior projects in 2022, with roofing/repairs accounting for 17% of project spend (2022 analysis)
- In 2023, U.S. homeowners spent $204 billion on home improvement projects (revised estimate)
- The Producer Price Index for construction inputs for residential remodeling increased by 3.1% in 2023 (annual rate)
- 29% of homeowners completed a home improvement project using a DIY approach in 2023 (survey result)
- 13.5% of U.S. households participated in energy-efficiency-related home improvement programs in 2022 (share of households receiving assistance)
- 29% of households used social media for product or contractor discovery in 2023 (survey)
- The average U.S. bathroom remodel cost was $31,000 (2023 national average estimate)
- Labor costs accounted for 28% of construction cost for remodeling projects (Cost Breakdown study, 2022)
- BLS residential remodeling price index increased by 5.2% from 2022 to 2023 (annual change)
- Lowe's operating margin was 4.2% in fiscal 2023
- Lowe's e-commerce sales were 22% of total sales in 2023 (percentage)
- U.S. contractor gross margins averaged 17% in 2022 (industry survey, median)
- 1.8 million U.S. homeowners started a renovation project during 2023 (survey estimate)
- 3.7% average annual growth rate in U.S. home improvement retail sales forecast for 2024–2028 (projection)
- $107 billion U.S. window and door replacement market in 2023 (vendor market estimate)
In 2023, Americans spent $204 billion on home improvements, with exterior repairs and roofing driving demand.
Related reading
01 · Category
Industry Trends9 stats
01
Home improvement market demand shifted toward exterior projects in 2022, with roofing/repairs accounting for 17% of project spend (2022 analysis)
02
In 2023, U.S. homeowners spent $204 billion on home improvement projects (revised estimate)
03
The Producer Price Index for construction inputs for residential remodeling increased by 3.1% in 2023 (annual rate)
04
The U.S. Census Bureau reported 1.7 million residential construction projects started in 2023 (permit/starts-based measure)
05
Cement prices increased by 4.9% in 2023 (annual rate, BLS producer price series)
06
The share of contractors using project management software reached 62% in 2024 (survey result)
07
Interest rates for 30-year fixed-rate mortgages averaged 6.62% in 2023 (affects renovation financing)
08
25% of remodeling contractors reported increased demand for exterior projects in 2023 (survey)
09
62% of construction firms cited labor shortages as a significant constraint in 2024 (survey)
Interpretation
Industry Trends Interpretation
In the home improvement industry, momentum is clearly shifting toward exterior work, with roofing and repairs taking 17% of project spend in 2022 and 25% of remodeling contractors reporting higher demand for exteriors in 2023, even as factors like higher construction inputs and labor shortages shape how projects get done.
02 · Category
User Adoption5 stats
01
29% of homeowners completed a home improvement project using a DIY approach in 2023 (survey result)
02
13.5% of U.S. households participated in energy-efficiency-related home improvement programs in 2022 (share of households receiving assistance)
03
29% of households used social media for product or contractor discovery in 2023 (survey)
04
63% of contractors offer electronic payments (ACH/cards) as standard payment methods (survey, 2024)
05
74% of homeowners obtained at least two bids for home improvement projects in 2023 (survey)
Interpretation
User Adoption Interpretation
User adoption is strong and digitally influenced, with 29% of homeowners taking on DIY projects and 29% using social media to find products or contractors in 2023, while 63% of contractors now accept electronic payments and 74% of homeowners obtain at least two bids.
03 · Category
Cost Analysis11 stats
01
The average U.S. bathroom remodel cost was $31,000(2023 national average estimate)
02
Labor costs accounted for 28% of construction cost for remodeling projects (Cost Breakdown study, 2022)
03
BLS residential remodeling price index increased by 5.2% from 2022 to 2023 (annual change)
04
Average cost to install a new asphalt shingle roof in the U.S. was $11,000in 2023 (national average)
05
Solar panel system cost averaged $2.90per watt in the U.S. in Q4 2023 (DOE soft/hard cost estimate)
06
The Consumer Price Index for 'Maintenance and repair of private residences' increased by 4.0% from 2022 to 2023
07
U.S. construction materials retail prices rose by 3.6% in 2023 (annual change, BLS PPI construction materials)
08
18% median cost increase for masonry and stonework projects between 2022 and 2023 (market study)
09
$2,300average cost for a minor bathroom remodel in the U.S. (2023 estimate; homeowner cost benchmark)
10
$38,000average cost for a kitchen remodel in the U.S. (2023 national benchmark)
11
35% of remodeling contractors reported subcontractor labor as the largest cost component after direct labor (survey, 2024)
Interpretation
Cost Analysis Interpretation
Cost analysis shows that home improvement expenses are rising across major remodel types, with labor making up 28% of costs and broader price pressures driving increases such as the BLS residential remodeling price index up 5.2% from 2022 to 2023 while bathroom remodels average $31,000 and kitchen remodels average $38,000.
More related reading
04 · Category
Performance Metrics5 stats
01
Lowe's operating margin was 4.2% in fiscal 2023
02
Lowe's e-commerce sales were 22% of total sales in 2023 (percentage)
03
U.S. contractor gross margins averaged 17% in 2022 (industry survey, median)
04
In 2023, 73% of consumers used online reviews to select a home improvement contractor (survey)
05
Default rates on home improvement installment loans were 2.1% in 2023 (annual performance metric)
Interpretation
Performance Metrics Interpretation
Performance Metrics show that profitability and demand are being shaped by digital behavior and credit risk, as Lowe’s kept a 4.2% operating margin in fiscal 2023 while e-commerce reached 22% of sales and 73% of consumers relied on online reviews to choose a contractor, alongside relatively low installment loan default rates of 2.1% in 2023.
05 · Category
Market Size3 stats
01
1.8 million U.S. homeowners started a renovation project during 2023 (survey estimate)
02
3.7% average annual growth rate in U.S. home improvement retail sales forecast for 2024–2028 (projection)
03
$107 billion U.S. window and door replacement market in 2023 (vendor market estimate)
Interpretation
Market Size Interpretation
With 1.8 million U.S. homeowners starting renovations in 2023 and window and door replacement alone reaching a $107 billion market that same year, the market size signal is further strengthened by projected 3.7% annual growth in home improvement retail sales from 2024 to 2028.
Reference
Cite This Report
This report is designed to be cited. We maintain stable URLs and versioned verification dates. Copy the format appropriate for your publication below.
APA
Min-ji Park. (2026, February 13). Home Improvement Statistics. Gitnux. https://gitnux.org/home-improvement-statistics
MLA
Min-ji Park. "Home Improvement Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/home-improvement-statistics.
Chicago
Min-ji Park. 2026. "Home Improvement Statistics." Gitnux. https://gitnux.org/home-improvement-statistics.
Sources & references
33 datasets cited across this report · attribution is report-level
+7 additional datasets cited (not shown individually)