American homeowners spent $462 billion on home remodeling in 2023, and the average project still sits at $35,000, even as needs shift toward energy savings, aging in place, and smart upgrades. One headline figure makes the rest feel like a tradeoff, with 41% of remodel budgets going to interior projects while unexpected repairs average $4,800. Let’s break down where the money actually went and what it says about what homeowners are prioritizing now.
Key Takeaways
- 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
- 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
- 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
- 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
- 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
In 2023, 52% of US homeowners remodeled, spending $462B overall with kitchens, energy upgrades, and financing leading.
Related reading
01 · Category
Consumer Spending30 stats
01
In 2023, 52% of US homeowners spent on remodeling, averaging $22,000 per household
02
Kitchen remodeling average spend was $28,400in 2023, up 5% from prior year
03
Bathroom remodel costs averaged $15,200per project in 2023 nationwide
04
68% of homeowners prioritized energy-efficient upgrades, spending $8,500 on average
05
Average deck addition cost $18,900in 2023, with 12% YoY increase
06
Homeowners under 35 spent 22% more on remodeling than average, at $26,500
07
Roof replacement average expenditure: $21,300in 2023
08
41% of remodel budgets went to interior projects, averaging $19,000 per home
09
Aging-in-place modifications cost averaged $12,400for seniors in 2023
10
Window replacement projects averaged $650per window, total $19,500 for typical home
11
55% of homeowners financed remodels, with average loan $35,000 in 2023
12
Curb appeal projects like siding averaged $16,800spend in 2023
13
Millennial homeowners spent $31,200on average for full kitchen remodels
14
HVAC system upgrades cost $7,900on average in 2023
15
37% increase in spending on home office remodels post-2020, avg $14,500
16
Garage door replacements averaged $4,200per door in 2023
17
Landscaping remodels cost $15,000average for mid-sized yards in 2023
18
Basement finishing projects averaged $38,000in 2023
19
62% of budgets for eco-friendly remodels went to solar installs, avg $25,000
20
Average attic insulation upgrade: $2,500per home in 2023
21
Full home interior painting averaged $3,200for 2,000 sq ft homes
22
Hardwood floor refinishing cost $6per sq ft, total $9,000 avg in 2023
23
48% of homeowners spent over $10,000 on 2023 remodels
24
Exterior painting projects averaged $5,400in 2023
25
Custom closet installations cost $3,500avg per project in 2023
26
29% of remodel spending was on unexpected repairs, avg $4,800
27
Pool addition remodels averaged $65,000in 2023
28
Smart lighting upgrades cost $1,200avg for full home in 2023
29
Crown molding installation averaged $9per linear foot, total $4,500
30
Home theater setups cost $12,000avg in 2023 remodels
Interpretation
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.
02 · Category
Industry Professionals26 stats
01
65% of remodel contractors are small firms with <10 employees
02
Average remodeler revenue per firm $1.2 million in 2023, up 3%
03
42% of contractors reported labor shortages as top challenge in 2023
04
Remodelers' average profit margin was 11.4% for projects over $50K in 2023
05
78% of professionals use digital design tools, up from 55% in 2020
06
Contractor licensing compliance rate 92% in 2023 inspections
07
Average years of experience for lead remodelers: 18 years in 2023
08
31% growth in female-owned remodeling firms since 2019
09
Top challenge: material cost volatility, cited by 67% of firms
10
Remodelers adopting CRM software rose to 45% in 2023
11
Average project backlog for remodelers: 4.2 months in Q4 2023
12
56% of contractors specialize in kitchens/baths
13
Insurance costs for remodelers up 12% YoY to avg $18K annually
14
23% of firms hired apprentices in 2023 to address skills gap
15
Digital marketing ROI for remodelers averaged 4:1 in 2023
16
71% of remodelers faced supply chain delays averaging 6 weeks
17
Certification rates: 34% NKBA certified kitchen designers
18
Average hourly wage for skilled remodelers: $32.50in 2023
19
48% of firms expanded staff by 10%+ in 2023
20
Tech adoption: 62% use drones for site surveys
21
Project management software usage 51%, boosting efficiency 18%
22
39% reported cybersecurity incidents in 2023
23
Unionized remodel labor 8% of workforce, avg wage $38/hr
24
Lead generation cost per project $450avg for remodelers
25
Sustainability training completed by 27% of pros in 2023
26
Average firm size: 6.8 employees for residential remodelers
Interpretation
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.
03 · Category
Market Size & Growth30 stats
01
In 2023, the total annual spending on home remodeling in the US reached $462 billion, marking a 2.5% increase from 2022
02
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
03
Residential remodeling expenditures accounted for 81% of total home improvement spending in 2023, totaling $375 billion
04
The Leading Indicator of Remodeling Activity (LIRA) projected a 1.4% rise in spending for 2024 after a flat 2023
05
Home improvement retail sales hit $538 billion in 2023, with remodeling projects comprising 85% of that figure
06
The global home remodeling market was valued at $1.2 trillion in 2023, expected to reach $1.8 trillion by 2030
07
US remodeling market share held by kitchen and bath projects was 32% of total expenditures in 2023
08
Post-pandemic, remodeling spending surged 35% from 2019 to 2022, peaking at $480 billion
09
Multifamily remodeling spending grew 5.8% year-over-year in Q4 2023 to $12.5 billion annually
10
The remodeling industry's contribution to US GDP was approximately 2.1% in 2023, supporting 2.2 million jobs
11
Average remodeling project cost in the US rose 7.2% in 2023 to $35,000 per project
12
Remodeling expenditure per homeowner averaged $14,200in 2023, up from $12,800 in 2022
13
The sector saw a 3.1% increase in total expenditures from Q3 2022 to Q3 2023, reaching $454 billion annualized
14
DIY remodeling spending accounted for 15% of total market, valued at $69 billion in 2023
15
Professional remodeling services market size was $393 billion in 2023, growing 4% YoY
16
Remodeling starts increased by 2.7% in 2023 to 15.2 million projects nationwide
17
The market for sustainable remodeling materials grew to $45 billion in 2023, up 12%
18
Total remodeling jobs created reached 1.8 million in 2023, a 1.5% increase
19
Remodeling industry revenue totaled $512 billion in 2023 per IBISWorld estimates
20
Annual growth rate for exterior remodeling projects was 5.4% in 2023
21
The US home remodeling market is forecasted to hit $600 billion by 2027, CAGR 4.8%
22
Remodeling spending as a percentage of GDP stabilized at 2.0% in 2023
23
Q1 2024 LIRA indicates 0.5% growth over 2023 levels
24
Remodeling market penetration in suburban areas reached 68% of households in 2023
25
Industry-wide profit margins averaged 6.2% in 2023 for remodelers
26
Total value of remodeling permits issued nationwide was $112 billion in 2023
27
Remodeling sector saw 4.1% employment growth from 2022-2023
28
Market size for smart home remodeling integrations hit $28 billion in 2023
29
Remodeling expenditures in owner-occupied homes were $420 billion in 2023
30
Projected 2025 market size: $510 billion, up 3.5% from 2024
Interpretation
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.
More related reading
04 · Category
Project Types20 stats
01
75% of kitchen remodels involve universal design features in 2023
02
Deck/porch additions recouped 66.8% ROI in 2023 Cost vs Value
03
Primary bathroom remodels averaged 58.4% cost recouped at resale
04
Garage door replacements offered highest ROI at 193.8% in 2023
05
Manufactured stone veneer projects ROI 102.9%, popular exterior upgrade
06
Grand kitchens saw only 39.1% ROI due to high $160K costs
07
41% of projects were replacements vs new additions in 2023
08
Aging-in-place remodels grew 22%, focusing on zero-step entries
09
ADU construction permits up 35% to 52,000 nationwide in 2023
10
Smart home integrations in 28% of remodels, avg 5 devices per project
11
Exterior siding replacements ROI 75.4%, fiber cement most popular
12
Home office conversions 19% of interior projects post-pandemic
13
Roof replacements with asphalt shingles ROI 60.5%, avg lifespan 25 yrs
14
Landscape enhancements ROI 94.9% for upscale projects
15
Window replacements (vinyl) ROI 69.5%, energy savings 12% annually
16
53% of kitchens featured islands, avg size 6x8 ft in 2023 remodels
17
Backup power generators installed in 8% of remodels, ROI 98%
18
Entry door replacements (steel) ROI 91.4%, curb appeal boost
19
Bathroom universal design features in 45% of projects, grab bars standard
20
Outdoor kitchens grew 15%, avg cost $40K with grilling stations
Interpretation
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.
05 · Category
Regional Data24 stats
01
Kitchen remodels in the Midwest averaged $25,600,10% below national avg
02
California remodeling spending per capita was $4,200in 2023, highest nationally
03
Northeast US saw 4.2% YoY growth in remodeling starts, totaling 3.1 million projects
04
Florida's hurricane recovery drove 18% surge in roof remodels, $15B total
05
Texas remodeling market size $52 billion in 2023, up 6% YoY
06
Pacific region kitchen remodel costs averaged $32,100,highest in US
07
Midwest bathroom projects grew 7% in volume, avg cost $14,200
08
South Atlantic states saw 25% increase in ADU permits, 45,000 issued
09
New York metro area remodeling spend $28B, driven by co-op upgrades
10
Southwest US energy-efficient remodels up 15%, $12B market
11
72% of Seattle homeowners remodeled in 2023, avg $29,000 spend
12
Chicago's historic home remodels totaled $8.5B, focusing on preservation
13
Denver market saw 9% growth in outdoor living spaces, $4.2B
14
Atlanta suburbs led South in kitchen remodels, 110,000 projects
15
West Coast sustainable remodels 22% of total, $35B spend
16
Rust Belt cities like Detroit saw 14% rise in affordable remodels
17
Phoenix hot climate drove 28% pool remodel increase, avg $55K
18
Boston's condo conversions boosted remodeling by 11%, $6.8B
19
Gulf Coast flood-resistant upgrades $10B in 2023 post-storms
20
Rural Midwest remodel rates 45%, urban 62% in 2023
21
Las Vegas luxury remodels averaged $75,000,up 8%
22
Portland OR eco-remodels led nation at 35% market share
23
Philadelphia rowhouse flips drove 16% market growth
24
Hawaii island remodels focused on resilience, $2.1B total
Interpretation
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.
Reference
Cite This Report
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APA
Marie Larsen. (2026, February 13). Remodeling Industry Statistics. Gitnux. https://gitnux.org/remodeling-industry-statistics
MLA
Marie Larsen. "Remodeling Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/remodeling-industry-statistics.
Chicago
Marie Larsen. 2026. "Remodeling Industry Statistics." Gitnux. https://gitnux.org/remodeling-industry-statistics.
Sources & references
53 datasets cited across this report · attribution is report-level