GITNUX REPORT 2024

Home Remodeling Industry: Key Stats and Trends for 2023

Unlocking the Home Remodeling Industry: Trends, Costs, and ROI Insights for 2023 Revealed!

Author: Jannik Lindner

First published: 7/17/2024

Statistic 1

Bathroom remodels have an average ROI of 60-67%

Statistic 2

The average cost of a bathroom remodel is $10,978

Statistic 3

The global smart bathroom market size is expected to reach $10.93 billion by 2027

Statistic 4

Energy-efficient home improvements can reduce energy bills by up to 35%

Statistic 5

The smart home market is expected to reach $622.59 billion by 2026

Statistic 6

The average cost of installing new windows is $650 per window

Statistic 7

The global green building materials market size was valued at $256.5 billion in 2020

Statistic 8

The global home automation market size is expected to reach $163.24 billion by 2028

Statistic 9

The average cost of installing a new HVAC system is $7,000

Statistic 10

33% of homeowners who renovated in 2020 did so to improve energy efficiency

Statistic 11

The average cost of installing solar panels is $16,000

Statistic 12

The global smart lighting market size is expected to reach $38.68 billion by 2026

Statistic 13

The global smart thermostat market size is expected to reach $6.4 billion by 2026

Statistic 14

The global smart lock market size is expected to reach $5.3 billion by 2025

Statistic 15

70% of homeowners used cash from savings to fund their home improvement projects

Statistic 16

77% of homeowners use their own savings to fund renovation projects

Statistic 17

42% of homeowners use credit cards to finance their home improvement projects

Statistic 18

28% of homeowners used a home equity loan or line of credit to finance their renovation in 2020

Statistic 19

40% of homeowners exceeded their renovation budget in 2020

Statistic 20

34% of homeowners used a credit card to finance their renovation in 2020

Statistic 21

23% of homeowners used a personal loan to finance their renovation in 2020

Statistic 22

15% of homeowners used a home equity loan to finance their renovation in 2020

Statistic 23

12% of homeowners used a cash-out refinance to finance their renovation in 2020

Statistic 24

The average cost of a home addition is $46,498

Statistic 25

The average cost of a basement remodel is $20,693

Statistic 26

The average cost of a garage addition is $27,000

Statistic 27

The average cost of a bathroom addition is $47,000

Statistic 28

The average cost of finishing an attic is $50,000

Statistic 29

The average cost of a sunroom addition is $30,000

Statistic 30

The average cost of a home office remodel is $15,000

Statistic 31

The average cost of a roof replacement is $8,597

Statistic 32

The average cost of installing new siding is $10,300

Statistic 33

The average cost of installing a new front door is $1,800

Statistic 34

The average cost of installing a new deck is $7,696

Statistic 35

The average cost of installing new gutters is $1,000

Statistic 36

The average cost of installing new landscaping is $3,370

Statistic 37

The average cost of a kitchen remodel is $25,656

Statistic 38

Kitchen remodels have an average ROI of 54-72%

Statistic 39

The average cost of a major kitchen remodel is $68,490

Statistic 40

The global smart kitchen appliances market is expected to reach $43.83 billion by 2027

Statistic 41

The global home improvement market size was valued at $849.31 billion in 2021

Statistic 42

The home remodeling industry is expected to grow at a CAGR of 4.1% from 2021 to 2027

Statistic 43

The home improvement industry employs over 1.1 million people in the United States

Statistic 44

The global home decor market size was valued at $616.6 billion in 2019

Statistic 45

The global home improvement services market size was valued at $316.8 billion in 2020

Statistic 46

The global home textile market size was valued at $94.73 billion in 2020

Statistic 47

The global home organization products market size was valued at $16.8 billion in 2020

Statistic 48

54% of homeowners are planning to spend money on home improvement projects in 2023

Statistic 49

40% of homeowners cite improving the home's design and aesthetics as their primary motivation for renovating

Statistic 50

58% of homeowners plan to hire a professional for their home improvement projects

Statistic 51

Homeowners spent an average of $15,000 on home improvements in 2020

Statistic 52

35% of homeowners who renovated in 2020 did so to adapt their home for aging in place

Statistic 53

The most expensive state for home remodeling is Hawaii, with an average cost of $32,000

Statistic 54

29% of homeowners who renovated in 2020 did so to increase their home's resale value

Statistic 55

87% of homeowners hired a professional for their renovation project in 2020

Statistic 56

55% of homeowners believe now is a good time to renovate

Statistic 57

58% of homeowners plan to renovate in 2023

Statistic 58

25% of homeowners who renovated in 2020 did so to increase their home's resale value

Statistic 59

51% of homeowners plan to begin or continue renovations in 2023

Statistic 60

38% of homeowners who renovated in 2020 did so to improve the functionality of their home

Statistic 61

45% of homeowners who renovated in 2020 did so to upgrade worn-out surfaces, finishes, and materials

Statistic 62

The most popular home renovation project is painting, with 32% of homeowners undertaking it

Statistic 63

48% of homeowners plan to decorate or furnish their home in 2023

Statistic 64

The average cost of installing hardwood flooring is $4,541

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Summary

  • The average cost of a kitchen remodel is $25,656
  • 54% of homeowners are planning to spend money on home improvement projects in 2023
  • Bathroom remodels have an average ROI of 60-67%
  • The global home improvement market size was valued at $849.31 billion in 2021
  • 70% of homeowners used cash from savings to fund their home improvement projects
  • The most popular home renovation project is painting, with 32% of homeowners undertaking it
  • Energy-efficient home improvements can reduce energy bills by up to 35%
  • The average cost of a bathroom remodel is $10,978
  • 40% of homeowners cite improving the home's design and aesthetics as their primary motivation for renovating
  • The home remodeling industry is expected to grow at a CAGR of 4.1% from 2021 to 2027
  • 58% of homeowners plan to hire a professional for their home improvement projects
  • The average cost of a home addition is $46,498
  • Homeowners spent an average of $15,000 on home improvements in 2020
  • Kitchen remodels have an average ROI of 54-72%
  • 35% of homeowners who renovated in 2020 did so to adapt their home for aging in place

Step aside HGTV, because the real drama is happening in the world of home remodeling! With the average cost of a kitchen remodel hitting $25,656 and 54% of homeowners gearing up to splurge on their abodes in 2023, it seems like everyones trying to outdo their neighbors curb appeal. From bathroom overhauls boasting a 60-67% return on investment to the global home improvement market flexing at $849.31 billion, its clear that were in the midst of an aesthetic arms race. So grab your paintbrushes and join the financial frenzy – just be sure to keep an eye on those skyrocketing prices, unless youre in Hawaii, where apparently even a humble subway tile comes with a hefty price tag!

Bathroom Remodeling

  • Bathroom remodels have an average ROI of 60-67%
  • The average cost of a bathroom remodel is $10,978
  • The global smart bathroom market size is expected to reach $10.93 billion by 2027

Interpretation

In the world of home remodeling, the numbers don't lie, but they might make you do a double-take. With bathroom remodels boasting an average ROI of 60-67%, it seems like a wise investment to enhance both comfort and value. However, with the average cost of a bathroom remodel hitting close to $11,000, you better make sure every penny shines like a newly polished faucet. And with the global smart bathroom market set to splash $10.93 billion by 2027, it appears that the future of bathrooms is not just about aesthetics, but about intelligence too. So, if you're thinking of renovating your loo, remember, the stakes are high, but the potential returns could be worthy of a standing ovation.

Energy Efficiency

  • Energy-efficient home improvements can reduce energy bills by up to 35%
  • The smart home market is expected to reach $622.59 billion by 2026
  • The average cost of installing new windows is $650 per window
  • The global green building materials market size was valued at $256.5 billion in 2020
  • The global home automation market size is expected to reach $163.24 billion by 2028
  • The average cost of installing a new HVAC system is $7,000
  • 33% of homeowners who renovated in 2020 did so to improve energy efficiency
  • The average cost of installing solar panels is $16,000
  • The global smart lighting market size is expected to reach $38.68 billion by 2026
  • The global smart thermostat market size is expected to reach $6.4 billion by 2026
  • The global smart lock market size is expected to reach $5.3 billion by 2025

Interpretation

In a world where the only thing growing faster than smart home technology is the pile of bills on your kitchen counter, it's clear that the future of home remodeling is not just about aesthetics, but about efficiency and innovation. From windows that cost more than a weekend getaway to HVAC systems that could buy you a decent used car, homeowners are investing in a greener, smarter tomorrow. So, if you find yourself pondering whether to splurge on that smart lock or stick with the standard deadbolt, just remember – it's not just about keeping your home safe, it's about keeping your budget in check, too. Welcome to the brave new world of home improvement, where saving energy is the new black, and your wallet is the ultimate accessory.

Financing

  • 70% of homeowners used cash from savings to fund their home improvement projects
  • 77% of homeowners use their own savings to fund renovation projects
  • 42% of homeowners use credit cards to finance their home improvement projects
  • 28% of homeowners used a home equity loan or line of credit to finance their renovation in 2020
  • 40% of homeowners exceeded their renovation budget in 2020
  • 34% of homeowners used a credit card to finance their renovation in 2020
  • 23% of homeowners used a personal loan to finance their renovation in 2020
  • 15% of homeowners used a home equity loan to finance their renovation in 2020
  • 12% of homeowners used a cash-out refinance to finance their renovation in 2020

Interpretation

In the high-stakes game of home renovation, it seems that homeowners are taking more risks than ever, with 40% bravely venturing beyond their budgetary confines. Cash is still king, as evidenced by the 70% who dip into savings, while credit cards play the part of the mischievous sidekick, making appearances in 42% of projects. Home equity loans also get their share of the spotlight, proving that when it comes to revamping your residence, it's all hands on deck (or in the piggy bank). So, while the walls may come tumbling down, it's clear that financial acrobatics are all part of the renovating circus – just don't forget your safety net!

Home Additions

  • The average cost of a home addition is $46,498
  • The average cost of a basement remodel is $20,693
  • The average cost of a garage addition is $27,000
  • The average cost of a bathroom addition is $47,000
  • The average cost of finishing an attic is $50,000
  • The average cost of a sunroom addition is $30,000
  • The average cost of a home office remodel is $15,000

Interpretation

In a world where the average cost of a home addition might just cost more than your first car, and a bathroom remodel could rival a year's worth of avocado toast expenses, one thing is clear: the Home Remodeling Industry means serious business. Whether you're dreaming of a luxurious sunroom or just looking to spruce up your home office, be prepared to fork out some serious cash. So, next time you're considering a basement makeover, remember that it's not just about adding value to your home – it's about investing in your personal sanctuary.

Home Exterior

  • The average cost of a roof replacement is $8,597
  • The average cost of installing new siding is $10,300
  • The average cost of installing a new front door is $1,800
  • The average cost of installing a new deck is $7,696
  • The average cost of installing new gutters is $1,000
  • The average cost of installing new landscaping is $3,370

Interpretation

In the world of home remodeling, the numbers don't lie, but they sure know how to make an entrance! From roof replacements that come with a price tag as lofty as the view they provide, to siding installations that promise to wrap your home in a fashionable new outfit, and don't forget about the front door that acts as the first impression on your home's runway. And for those who like to wine and dine outdoors, a deck is a must-have accessory. But let's not overlook the unsung heroes like gutters that keep the rain at bay, and landscaping that adds the perfect finishing touch. In this industry, beauty may be in the eye of the beholder, but it definitely comes at a cost.

Kitchen Remodeling

  • The average cost of a kitchen remodel is $25,656
  • Kitchen remodels have an average ROI of 54-72%
  • The average cost of a major kitchen remodel is $68,490
  • The global smart kitchen appliances market is expected to reach $43.83 billion by 2027

Interpretation

The Home Remodeling Industry is sizzling hot, serving up a platter of numbers that will make your head spin faster than a kitchenaid mixer. With the average cost of a kitchen remodel hitting $25,656, homeowners are clearly willing to put their money where their microwave is. And with a tantalizing average ROI of 54-72%, it seems like investing in that dream kitchen might just be worth the dough. But hold onto your spatulas, as major remodels are ringing in at a hefty $68,490 – a price tag as eye-watering as a freshly chopped onion. With the global smart kitchen appliances market on track to reach a whopping $43.83 billion by 2027, it seems like the kitchen truly is the heart of the home – and one that’s getting smarter every day.

Market Size

  • The global home improvement market size was valued at $849.31 billion in 2021
  • The home remodeling industry is expected to grow at a CAGR of 4.1% from 2021 to 2027
  • The home improvement industry employs over 1.1 million people in the United States
  • The global home decor market size was valued at $616.6 billion in 2019
  • The global home improvement services market size was valued at $316.8 billion in 2020
  • The global home textile market size was valued at $94.73 billion in 2020
  • The global home organization products market size was valued at $16.8 billion in 2020

Interpretation

As these impressive statistics demonstrate, the home remodeling industry is not just about fixing leaky faucets and choosing paint colors – it's a booming sector that drives economic growth, employment opportunities, and trends in home design. With billions of dollars swirling around in home improvement markets worldwide, it's clear that the quest for the perfect living space is more than just a passing fad – it's a multi-billion dollar industry fueled by both necessity and luxury. So next time you debate whether to upgrade your kitchen or invest in a new set of throw pillows, remember that you're not just redecorating – you're contributing to a global market that's as vast and varied as the homes it seeks to enhance.

Market Trends

  • 54% of homeowners are planning to spend money on home improvement projects in 2023
  • 40% of homeowners cite improving the home's design and aesthetics as their primary motivation for renovating
  • 58% of homeowners plan to hire a professional for their home improvement projects
  • Homeowners spent an average of $15,000 on home improvements in 2020
  • 35% of homeowners who renovated in 2020 did so to adapt their home for aging in place
  • The most expensive state for home remodeling is Hawaii, with an average cost of $32,000
  • 29% of homeowners who renovated in 2020 did so to increase their home's resale value
  • 87% of homeowners hired a professional for their renovation project in 2020
  • 55% of homeowners believe now is a good time to renovate
  • 58% of homeowners plan to renovate in 2023
  • 25% of homeowners who renovated in 2020 did so to increase their home's resale value
  • 51% of homeowners plan to begin or continue renovations in 2023
  • 38% of homeowners who renovated in 2020 did so to improve the functionality of their home
  • 45% of homeowners who renovated in 2020 did so to upgrade worn-out surfaces, finishes, and materials

Interpretation

In a world where homes are more than just mere structures, but extensions of our personalities, it comes as no surprise that over half of homeowners are gearing up to splash some cash into their abodes in 2023. With design and aesthetics leading the charge as the top motivation for renovations, it's clear that we all want our homes to be as Instagram-worthy as possible. And while some may attempt a DIY approach, the majority are wise enough to leave it to the pros, especially considering the hefty average spending of $15,000. Whether it's for aging in place, boosting resale value, or just sprucing things up, it seems there's never a bad time to whip out the tool belt and get to work. So, fellow homeowners, let's roll up our sleeves, hire those professionals, and turn our living spaces into the envy of all our neighbors. Just don't forget to stock up on patience, blue tape, and coffee – lots of coffee.

Popular Projects

  • The most popular home renovation project is painting, with 32% of homeowners undertaking it
  • 48% of homeowners plan to decorate or furnish their home in 2023
  • The average cost of installing hardwood flooring is $4,541

Interpretation

Ah, the complex dance of homeowners and their beloved abodes never ceases to intrigue. From the delightful pastime of painting walls to the ambitious plans for lavish decoration, it seems the quest for the perfect home is eternal. With nearly half of homeowners gearing up to indulge in the art of embellishment, one can only imagine the battle royale brewing at the local furniture store. And let us not forget the illustrious hardwood flooring, beckoning at an average cost that could make even the most stoic homeowner quiver in their slippers. It's a world of flair, finesse, and financial fortitude, where every brushstroke and floorboard plays a part in the grand symphony of domestic renovation.

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