Picture a global wave of home improvement sweeping from bustling Asian cities to suburban America, with homeowners from every demographic pouring over $800 billion into renovations last year—and this blog post will give you the data-driven blueprint to understand exactly what that means for your next project.
Key Takeaways
- In 2023, the U.S. home renovation market was valued at $462 billion, representing a 4.2% increase from 2022 driven by aging housing stock and rising home equity.
- Global home improvement market size reached $837.6 billion in 2023, projected to grow at a CAGR of 5.1% from 2024 to 2030 due to urbanization and DIY trends.
- U.S. residential remodeling expenditures hit $454 billion in 2022, with a forecasted 1.5% decline in 2023 amid high interest rates.
- U.S. millennial homeowners spent $112 billion on renovations in 2023, 25% of total market share.
- 62% of U.S. homeowners aged 18-34 undertook renovations in 2023, prioritizing open floor plans.
- Baby boomers accounted for 38% of renovation projects in 2022, focusing on aging-in-place modifications.
- Average kitchen remodel cost in U.S. rose to $28,467 in 2023, up 5.6% YoY due to labor shortages.
- Bathroom renovation average expense hit $12,500 in 2023 U.S., with mid-range at $10,978.
- Whole-home remodel costs averaged $48,000-$125,000 in 2023, varying by square footage.
- 68% of U.S. homeowners renovated kitchens in 2023, largest project share.
- Bathroom remodels undertaken by 54% of renovators in 2023, favoring walk-in showers.
- 42% added home offices post-2020, trend continuing into 2023 with built-ins.
- Manufactured stone veneer added ROI of 102.1% nationally in 2023.
- Garage door replacement recouped 194% cost in 2023 resale value.
- Minor kitchen remodel yielded 86.1% ROI in 2023 Cost vs. Value report.
The home renovation market grew globally and locally in 2023, driven by diverse projects and owner needs.
Consumer Demographics and Behavior
- U.S. millennial homeowners spent $112 billion on renovations in 2023, 25% of total market share.
- 62% of U.S. homeowners aged 18-34 undertook renovations in 2023, prioritizing open floor plans.
- Baby boomers accounted for 38% of renovation projects in 2022, focusing on aging-in-place modifications.
- 55% of female U.S. homeowners led renovation decisions in 2023, up from 48% in 2020.
- Urban dwellers spent 22% more on home upgrades than rural in 2023, averaging $28,000 per project.
- 71% of Gen Z renters plan renovations upon homeownership, influenced by social media trends.
- High-income households (>$150k) comprised 45% of renovation spending in U.S. 2023 at $210 billion.
- 48% of U.S. Hispanic homeowners renovated in 2023, emphasizing family-oriented spaces.
- Empty nesters increased bathroom remodels by 35% in 2023 for accessibility features.
- 67% of remote workers invested in home offices in 2023, averaging $15,200 per setup.
- First-time buyers under 35 spent 18% more on cosmetic updates in 2023 vs. prior generations.
- 52% of U.S. homeowners delayed renovations due to inflation in 2023, opting for DIY.
- Pet owners allocated 12% of budgets to pet-friendly renovations in 2023, like durable flooring.
- LGBTQ+ homeowners prioritized inclusive designs 28% more in 2023 renovations.
- 59% of married couples shared renovation decisions equally in 2023, up 10% from 2019.
- Southern U.S. states saw 15% higher renovation rates among families with children in 2023.
- Veterans invested 20% more in smart home tech during 2023 remodels for security.
- Single parents focused 40% of spending on multifunctional spaces in 2023.
- 44% of Asian American homeowners renovated kitchens in 2023 for cultural cooking needs.
Consumer Demographics and Behavior Interpretation
Millennials are spending a fortune to tear down walls, boomers are wisely retrofitting theirs to age in place, and with women increasingly calling the shots, the American home is being reshaped—room by room, budget line by budget line—by the very specific lives we’re all trying to live inside it.
Labor and Professionals
- U.S. remodeling labor force numbered 3.4 million in 2023, shortage of 500k skilled workers.
- Contractor wages averaged $35/hour for remodelers in 2023 U.S., up 6% YoY.
- 78% of contractors reported project delays due to labor shortages in 2023.
- Women comprised 12% of construction workforce in home reno 2023, up from 9%.
- Average project timeline extended 25% in 2023 to 4.2 months due to supply chains.
- 65% of remodels used subcontractors in 2023, general contractors coordinating.
- Plumber shortage hit 40% of projects, rates $95-$150/hour 2023.
- Electrician demand up 15%, hourly $75-$120 in reno work 2023.
- Carpenter labor costs $40-$80/hour, 30% projects understaffed 2023.
- HVAC techs averaged $28/hour but shortages delayed 35% installs 2023.
- Architect fees 8-15% of project cost in 2023 custom renos.
- Interior designers billed $100-$200/hour, used in 22% upscale projects 2023.
- 55% contractors used software for scheduling, improving efficiency 12% 2023.
- Union labor premium 20-30% higher in urban renos 2023.
- Immigrant workers 25% of reno labor force U.S. 2023.
- Training programs enrolled 150k new workers in 2023, but 200k needed.
- Insurance costs for contractors up 18% to $4,200 avg policy 2023.
- Remote project management adopted by 41% firms in 2023.
Labor and Professionals Interpretation
America's homes are being redesigned at a glacial, premium-priced pace by an overstretched, understaffed, and increasingly tech-savvy army of professionals, where even the plumbers need their own financial advisor.
Market Size and Growth
- In 2023, the U.S. home renovation market was valued at $462 billion, representing a 4.2% increase from 2022 driven by aging housing stock and rising home equity.
- Global home improvement market size reached $837.6 billion in 2023, projected to grow at a CAGR of 5.1% from 2024 to 2030 due to urbanization and DIY trends.
- U.S. residential remodeling expenditures hit $454 billion in 2022, with a forecasted 1.5% decline in 2023 amid high interest rates.
- The European home renovation sector grew by 3.8% in 2022 to €120 billion, fueled by energy efficiency regulations.
- Canadian home renovation spending totaled CAD 45.2 billion in 2023, up 2.1% from prior year despite economic slowdown.
- In 2023, kitchen and bath remodeling accounted for 28% of total U.S. renovation spending at $129 billion.
- Asia-Pacific home renovation market expanded to $285 billion in 2023, with China contributing 45% due to new urban housing.
- U.S. DIY home improvement sales reached $47 billion in 2023, a 3% rise linked to inflation and remote work setups.
- UK home improvement market value was £36.5 billion in 2023, growing 4.5% YoY from sustainability demands.
- Australian residential renovation expenditure hit AUD 22.4 billion in FY2023, up 1.8% amid housing shortages.
- In Q4 2023, U.S. home improvement retailer revenues grew 2.7% YoY to $192 billion annually.
- Latin America home renovation market projected to reach $95 billion by 2028 at 6.2% CAGR from 2023 base.
- French home renovation spending rose 5.2% to €48 billion in 2023, boosted by MaPrimeRénov' subsidies.
- Indian home improvement sector valued at $28 billion in 2023, expected 12% CAGR to 2028 on real estate boom.
- German remodeling market size was €85 billion in 2023, with 3.1% growth from energy retrofit incentives.
- U.S. spending on replacement remodeling projects reached $340 billion in 2023, 75% of total activity.
- Middle East home renovation market grew to $42 billion in 2023 at 4.8% CAGR, led by UAE luxury upgrades.
- Italian home improvement expenditures totaled €32 billion in 2023, up 2.9% on post-pandemic recovery.
- South Korean residential renovation market hit KRW 50 trillion in 2023, driven by aging apartments.
- Spanish home renovation sector value reached €18.5 billion in 2023, growing 4.1% via NextGenerationEU funds.
Market Size and Growth Interpretation
Despite the occasional financial hangover from interest rates, homeowners worldwide are stubbornly treating their aging abodes to a global makeover, collectively proving that the urge to upgrade a kitchen or slap on some insulation is a recession-resistant, subsidy-fueled, and remarkably universal form of hope.
Popular Projects and Trends
- 68% of U.S. homeowners renovated kitchens in 2023, largest project share.
- Bathroom remodels undertaken by 54% of renovators in 2023, favoring walk-in showers.
- 42% added home offices post-2020, trend continuing into 2023 with built-ins.
- Outdoor living spaces built by 39% in 2023, decks and patios dominant.
- Energy-efficient upgrades in 47% of 2023 projects, LED lighting top.
- Aging-in-place mods like grab bars in 31% of boomer homes 2023.
- Smart home tech integrated in 52% of renovations 2023, thermostats leading.
- Curb appeal projects like entry doors in 36% of 2023 flips.
- Laundry room upgrades in 25% of homes 2023, stackable units popular.
- Mudrooms added or renovated in 22% Northeast homes 2023.
- Wine cellars featured in 18% luxury remodels 2023.
- ADUs permitted in 15% of urban renovations 2023.
- Wallpaper returns in 29% interior projects 2023.
- Biophilic design elements in 41% 2023 remodels, plants and naturals.
- Matte black fixtures in 35% bath/kitchen 2023.
- Open shelving over cabinets in 27% kitchens 2023.
- EV charger installs in 19% garage renos 2023.
- Fluted panels trend in 24% modern remodels 2023.
- Gender-neutral palettes in 33% family homes 2023.
- Pocket offices in 21% small-space renos 2023.
- Garage conversions to gyms in 16% 2023 projects.
Popular Projects and Trends Interpretation
If you want to know what America’s homes are whispering about our lives, look no further than the 2023 renovation data, which tells a story of a nation cooking in kitchens, showering lavishly, working from built-in offices, saving energy while charging cars, embracing nature and tech in equal measure, aging in place gracefully, and occasionally hiding the laundry in a mudroom before retreating to a wine cellar.
ROI and Resale Value
- Manufactured stone veneer added ROI of 102.1% nationally in 2023.
- Garage door replacement recouped 194% cost in 2023 resale value.
- Minor kitchen remodel yielded 86.1% ROI in 2023 Cost vs. Value report.
- Fiber-cement siding returned 115.7% in West region 2023 appraisals.
- Deck addition (wood) recouped 67.8% nationally in 2023.
- Bathroom remodel ROI averaged 72.7% for midrange in 2023.
- Entry door replacement (steel) 101.2% ROI 2023 national.
- Window replacement (vinyl) returned 70.1% in 2023.
- Roofing (asphalt) recouped 61.3% cost 2023 resale.
- Grand entrance (upscale) 94.9% ROI Pacific region 2023.
- Backup power generator 96.1% ROI in Northeast 2023.
- Home office remodel 85.2% ROI midrange 2023.
- Patio cover returned 84.3% nationally 2023.
- Landscape (upscale) 105% ROI West 2023.
- Major kitchen remodel 54.9% ROI 2023 national average.
- Primary suite addition 58.1% ROI upscale 2023.
- Bath addition 35.2% ROI midrange 2023.
- Deck (composite) 63.9% ROI 2023.
- Siding (vinyl) 68.4% ROI national 2023.
- Attic insulation 107.7% ROI energy project 2023.
- Homes with renovated kitchens sold 13% faster in 2023 Zillow data.
- Updated bathrooms increased sale price by 5.7% average 2023.
- Energy upgrades added $15,000 to median sale price 2023 NAR.
- Curb appeal projects boosted offers by 7% higher 2023.
- Open concept remodels yielded 10.2% premium on sale 2023.
ROI and Resale Value Interpretation
The numbers reveal a clear, if slightly mercenary, truth about modern renovations: slap a fancy new garage door and some stone veneer on the front, stuff the attic with insulation, and you'll profit nicely, but God help you if you actually knock down a wall to indulge in a major kitchen fantasy or add a bathroom, as the market will punish your self-indulgence with a brutal financial haircut.
Renovation Costs
- Average kitchen remodel cost in U.S. rose to $28,467 in 2023, up 5.6% YoY due to labor shortages.
- Bathroom renovation average expense hit $12,500 in 2023 U.S., with mid-range at $10,978.
- Whole-home remodel costs averaged $48,000-$125,000 in 2023, varying by square footage.
- Roof replacement cost $11,379 nationally in 2023, up 7% from material price hikes.
- Basement finishing averaged $32,000 in 2023 for 1,000 sq ft, including waterproofing.
- Window replacement cost $450-$1,800 per window in 2023, energy-efficient models higher.
- Hardwood flooring installation averaged $6-$12 per sq ft in 2023 U.S. projects.
- HVAC system replacement cost $7,500-$15,000 in 2023, central AC units pricier.
- Deck addition averaged $27,000 in 2023, composite materials at $35/sq ft.
- Garage door replacement $1,199-$3,600 per door in 2023, insulated steel common.
- Siding replacement cost $14,000-$25,000 for average home in 2023.
- Pool installation averaged $50,000 in 2023 U.S., inground fiberglass $40k base.
- Home office conversion cost $10,000-$25,000 in 2023, wiring included.
- Exterior painting $2,500-$7,500 for 2,000 sq ft home in 2023.
- Landscaping makeover $4,000-$12,000 average in 2023 projects.
- Solar panel installation $20,552 after incentives in 2023 for 6.6kW system.
- Backup generator install $10,000-$17,500 in 2023 for whole-home.
- Smart home automation retrofit $5,000-$15,000 in 2023 averages.
- Attic insulation addition $1,500-$3,000 in 2023 for 1,000 sq ft.
- Closet organization system $2,000-$6,000 installed in 2023.
Renovation Costs Interpretation
Based on these numbers, it seems the American dream now costs extra, as the price tag on improving your home has officially become a second mortgage with better appliances.
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