Picture a remodeling industry so powerful it commands over half a trillion dollars annually, reshaping homes and the very economy itself with a 2.5% spending surge in 2023 to $462 billion.
Key Takeaways
- In 2023, the total annual spending on home remodeling in the US reached $462 billion, marking a 2.5% increase from 2022
- The remodeling industry is projected to grow at a CAGR of 4.2% from 2024 to 2028, driven by aging housing stock and rising home equity
- Residential remodeling expenditures accounted for 81% of total home improvement spending in 2023, totaling $375 billion
- In 2023, 52% of US homeowners spent on remodeling, averaging $22,000 per household
- Kitchen remodeling average spend was $28,400 in 2023, up 5% from prior year
- Bathroom remodel costs averaged $15,200 per project in 2023 nationwide
- Kitchen remodels in the Midwest averaged $25,600, 10% below national avg
- California remodeling spending per capita was $4,200 in 2023, highest nationally
- Northeast US saw 4.2% YoY growth in remodeling starts, totaling 3.1 million projects
- 65% of remodel contractors are small firms with <10 employees
- Average remodeler revenue per firm $1.2 million in 2023, up 3%
- 42% of contractors reported labor shortages as top challenge in 2023
- 75% of kitchen remodels involve universal design features in 2023
- Deck/porch additions recouped 66.8% ROI in 2023 Cost vs Value
- Primary bathroom remodels averaged 58.4% cost recouped at resale
The US remodeling industry continues growing steadily, fueled by aging homes and homeowner investment.
Consumer Spending
- In 2023, 52% of US homeowners spent on remodeling, averaging $22,000 per household
- Kitchen remodeling average spend was $28,400 in 2023, up 5% from prior year
- Bathroom remodel costs averaged $15,200 per project in 2023 nationwide
- 68% of homeowners prioritized energy-efficient upgrades, spending $8,500 on average
- Average deck addition cost $18,900 in 2023, with 12% YoY increase
- Homeowners under 35 spent 22% more on remodeling than average, at $26,500
- Roof replacement average expenditure: $21,300 in 2023
- 41% of remodel budgets went to interior projects, averaging $19,000 per home
- Aging-in-place modifications cost averaged $12,400 for seniors in 2023
- Window replacement projects averaged $650 per window, total $19,500 for typical home
- 55% of homeowners financed remodels, with average loan $35,000 in 2023
- Curb appeal projects like siding averaged $16,800 spend in 2023
- Millennial homeowners spent $31,200 on average for full kitchen remodels
- HVAC system upgrades cost $7,900 on average in 2023
- 37% increase in spending on home office remodels post-2020, avg $14,500
- Garage door replacements averaged $4,200 per door in 2023
- Landscaping remodels cost $15,000 average for mid-sized yards in 2023
- Basement finishing projects averaged $38,000 in 2023
- 62% of budgets for eco-friendly remodels went to solar installs, avg $25,000
- Average attic insulation upgrade: $2,500 per home in 2023
- Full home interior painting averaged $3,200 for 2,000 sq ft homes
- Hardwood floor refinishing cost $6 per sq ft, total $9,000 avg in 2023
- 48% of homeowners spent over $10,000 on 2023 remodels
- Exterior painting projects averaged $5,400 in 2023
- Custom closet installations cost $3,500 avg per project in 2023
- 29% of remodel spending was on unexpected repairs, avg $4,800
- Pool addition remodels averaged $65,000 in 2023
- Smart lighting upgrades cost $1,200 avg for full home in 2023
- Crown molding installation averaged $9 per linear foot, total $4,500
- Home theater setups cost $12,000 avg in 2023 remodels
Consumer Spending Interpretation
Americans are frantically reinvesting in their homes at astonishing rates, treating them like beloved but high-maintenance family members who suddenly need expensive surgery, a wardrobe update, and a full course of energy vitamins all at once.
Industry Professionals
- 65% of remodel contractors are small firms with <10 employees
- Average remodeler revenue per firm $1.2 million in 2023, up 3%
- 42% of contractors reported labor shortages as top challenge in 2023
- Remodelers' average profit margin was 11.4% for projects over $50K in 2023
- 78% of professionals use digital design tools, up from 55% in 2020
- Contractor licensing compliance rate 92% in 2023 inspections
- Average years of experience for lead remodelers: 18 years in 2023
- 31% growth in female-owned remodeling firms since 2019
- Top challenge: material cost volatility, cited by 67% of firms
- Remodelers adopting CRM software rose to 45% in 2023
- Average project backlog for remodelers: 4.2 months in Q4 2023
- 56% of contractors specialize in kitchens/baths
- Insurance costs for remodelers up 12% YoY to avg $18K annually
- 23% of firms hired apprentices in 2023 to address skills gap
- Digital marketing ROI for remodelers averaged 4:1 in 2023
- 71% of remodelers faced supply chain delays averaging 6 weeks
- Certification rates: 34% NKBA certified kitchen designers
- Average hourly wage for skilled remodelers: $32.50 in 2023
- 48% of firms expanded staff by 10%+ in 2023
- Tech adoption: 62% use drones for site surveys
- Project management software usage 51%, boosting efficiency 18%
- 39% reported cybersecurity incidents in 2023
- Unionized remodel labor 8% of workforce, avg wage $38/hr
- Lead generation cost per project $450 avg for remodelers
- Sustainability training completed by 27% of pros in 2023
- Average firm size: 6.8 employees for residential remodelers
Industry Professionals Interpretation
The remodeling industry is a high-stakes, low-margin ballet where seasoned artisans, armed with drones and besieged by material costs, pirouette through labor shortages and supply chain delays, all while trying to remember their new CRM password.
Market Size & Growth
- In 2023, the total annual spending on home remodeling in the US reached $462 billion, marking a 2.5% increase from 2022
- The remodeling industry is projected to grow at a CAGR of 4.2% from 2024 to 2028, driven by aging housing stock and rising home equity
- Residential remodeling expenditures accounted for 81% of total home improvement spending in 2023, totaling $375 billion
- The Leading Indicator of Remodeling Activity (LIRA) projected a 1.4% rise in spending for 2024 after a flat 2023
- Home improvement retail sales hit $538 billion in 2023, with remodeling projects comprising 85% of that figure
- The global home remodeling market was valued at $1.2 trillion in 2023, expected to reach $1.8 trillion by 2030
- US remodeling market share held by kitchen and bath projects was 32% of total expenditures in 2023
- Post-pandemic, remodeling spending surged 35% from 2019 to 2022, peaking at $480 billion
- Multifamily remodeling spending grew 5.8% year-over-year in Q4 2023 to $12.5 billion annually
- The remodeling industry's contribution to US GDP was approximately 2.1% in 2023, supporting 2.2 million jobs
- Average remodeling project cost in the US rose 7.2% in 2023 to $35,000 per project
- Remodeling expenditure per homeowner averaged $14,200 in 2023, up from $12,800 in 2022
- The sector saw a 3.1% increase in total expenditures from Q3 2022 to Q3 2023, reaching $454 billion annualized
- DIY remodeling spending accounted for 15% of total market, valued at $69 billion in 2023
- Professional remodeling services market size was $393 billion in 2023, growing 4% YoY
- Remodeling starts increased by 2.7% in 2023 to 15.2 million projects nationwide
- The market for sustainable remodeling materials grew to $45 billion in 2023, up 12%
- Total remodeling jobs created reached 1.8 million in 2023, a 1.5% increase
- Remodeling industry revenue totaled $512 billion in 2023 per IBISWorld estimates
- Annual growth rate for exterior remodeling projects was 5.4% in 2023
- The US home remodeling market is forecasted to hit $600 billion by 2027, CAGR 4.8%
- Remodeling spending as a percentage of GDP stabilized at 2.0% in 2023
- Q1 2024 LIRA indicates 0.5% growth over 2023 levels
- Remodeling market penetration in suburban areas reached 68% of households in 2023
- Industry-wide profit margins averaged 6.2% in 2023 for remodelers
- Total value of remodeling permits issued nationwide was $112 billion in 2023
- Remodeling sector saw 4.1% employment growth from 2022-2023
- Market size for smart home remodeling integrations hit $28 billion in 2023
- Remodeling expenditures in owner-occupied homes were $420 billion in 2023
- Projected 2025 market size: $510 billion, up 3.5% from 2024
Market Size & Growth Interpretation
Americans are spending nearly half a trillion dollars annually to prove that our homes, much like ourselves, are expensive, complicated, and perpetually unfinished works in progress.
Project Types
- 75% of kitchen remodels involve universal design features in 2023
- Deck/porch additions recouped 66.8% ROI in 2023 Cost vs Value
- Primary bathroom remodels averaged 58.4% cost recouped at resale
- Garage door replacements offered highest ROI at 193.8% in 2023
- Manufactured stone veneer projects ROI 102.9%, popular exterior upgrade
- Grand kitchens saw only 39.1% ROI due to high $160K costs
- 41% of projects were replacements vs new additions in 2023
- Aging-in-place remodels grew 22%, focusing on zero-step entries
- ADU construction permits up 35% to 52,000 nationwide in 2023
- Smart home integrations in 28% of remodels, avg 5 devices per project
- Exterior siding replacements ROI 75.4%, fiber cement most popular
- Home office conversions 19% of interior projects post-pandemic
- Roof replacements with asphalt shingles ROI 60.5%, avg lifespan 25 yrs
- Landscape enhancements ROI 94.9% for upscale projects
- Window replacements (vinyl) ROI 69.5%, energy savings 12% annually
- 53% of kitchens featured islands, avg size 6x8 ft in 2023 remodels
- Backup power generators installed in 8% of remodels, ROI 98%
- Entry door replacements (steel) ROI 91.4%, curb appeal boost
- Bathroom universal design features in 45% of projects, grab bars standard
- Outdoor kitchens grew 15%, avg cost $40K with grilling stations
Project Types Interpretation
While pouring money into grand kitchens only flatters your ego, the real culinary profit is in the affordable garage door that practically pays you to install it and the aging-in-place tweaks that let you enjoy it all comfortably for years to come.
Regional Data
- Kitchen remodels in the Midwest averaged $25,600, 10% below national avg
- California remodeling spending per capita was $4,200 in 2023, highest nationally
- Northeast US saw 4.2% YoY growth in remodeling starts, totaling 3.1 million projects
- Florida's hurricane recovery drove 18% surge in roof remodels, $15B total
- Texas remodeling market size $52 billion in 2023, up 6% YoY
- Pacific region kitchen remodel costs averaged $32,100, highest in US
- Midwest bathroom projects grew 7% in volume, avg cost $14,200
- South Atlantic states saw 25% increase in ADU permits, 45,000 issued
- New York metro area remodeling spend $28B, driven by co-op upgrades
- Southwest US energy-efficient remodels up 15%, $12B market
- 72% of Seattle homeowners remodeled in 2023, avg $29,000 spend
- Chicago's historic home remodels totaled $8.5B, focusing on preservation
- Denver market saw 9% growth in outdoor living spaces, $4.2B
- Atlanta suburbs led South in kitchen remodels, 110,000 projects
- West Coast sustainable remodels 22% of total, $35B spend
- Rust Belt cities like Detroit saw 14% rise in affordable remodels
- Phoenix hot climate drove 28% pool remodel increase, avg $55K
- Boston's condo conversions boosted remodeling by 11%, $6.8B
- Gulf Coast flood-resistant upgrades $10B in 2023 post-storms
- Rural Midwest remodel rates 45%, urban 62% in 2023
- Las Vegas luxury remodels averaged $75,000, up 8%
- Portland OR eco-remodels led nation at 35% market share
- Philadelphia rowhouse flips drove 16% market growth
- Hawaii island remodels focused on resilience, $2.1B total
Regional Data Interpretation
While this industry is framed by national averages, each region writes its own story—from California’s lofty per capita spending and the Pacific’s premium kitchens, to Florida’s hurricane-driven roofs, Texas’s colossal market, and the quiet but steady rise of ADUs and eco-upgrades, proving that remodeling is less a uniform trade and more a mosaic of local necessity, climate, and character.
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