US Home Improvement Market - Focused Insights 2024-2029

MARKET ANALYSIS

The U.S. home improvement market size was valued at USD 522.25 billion in 2023 and is projected to reach USD 615.58 billion by 2029, growing at a CAGR of 2.78% during the forecast period. Sales of building materials, appliances, and décor are key contributors to market growth. As living standards improve, consumers are investing more in both interior and exterior home improvements. The integration of home technology, enhancing security and energy efficiency, is a significant driver. Additionally, the rise in DIY projects, facilitated by increased leisure time, is further propelling market expansion.

MARKET TRENDS & DRIVERS

Integration of Smart Home Technology with Home Improvement Products

Smart home integration is a prominent trend in the U.S. home improvement sector, driven by advancements in home automation. These systems offer homeowners centralized control over various home functions, including security, climate, and lighting, through intuitive interfaces such as voice commands and smartphone apps, significantly enhancing convenience and efficiency.

Increasing Demand for Personalization and Customization Trends

The U.S. home improvement market is experiencing a significant trend towards personalization and customization, driven by changing consumer lifestyles. Homeowners are increasingly prioritizing living spaces that express their individual identities and preferences. This includes custom interior designs for furniture and fixtures, as well as personalized outdoor living solutions such as custom decks and landscaping.

DIY Trends boosting Home Upgrades

DIY home improvement activities are surging in the U.S., driven by accessible information, personalization desires, home equity, remote work, and increased leisure. Pandemic-era growth has continued, with popular projects including remodeling, painting, and landscaping. DIY offers cost savings and allows for personalized spaces. Online tutorials and resources further facilitate these projects.

INDUSTRY RESTRAINTS

Disruptions in Supply Chain Mechanism

A major challenge facing the U.S. home improvement market is supply chain disruption, which can lead to higher product prices. These disruptions are influenced by various factors, including weather, energy costs, geopolitical events, and natural disasters. Strong economic growth and increased consumer spending can strain supply chains, resulting in shortages and price increases. Material shortages, such as appliances and lumber, cause project delays and inflate costs. Consumer confidence and spending can be negatively impacted by material availability and pricing uncertainty, ultimately hindering market growth.

SEGMENTATION INSIGHTS

• Insights By End-Use: The interior room models segment dominates the U.S. home improvement market with over 36% share. Growth is driven by remote work trends, leading to increased investment in home offices and related décor. Market trends include smart home integration, customization, and sustainable materials. Bathroom and kitchen remodeling, including fixtures and appliances, is also gaining popularity due to increased time spent at home.
• Insights By Project: The DIY segment is projected to experience the highest growth in the U.S. home improvement market. This surge is primarily attributed to increased leisure time and the prevalence of remote work, enabling individuals to engage in creative home projects. DIY activities, especially in gardening, allow for personalization and self-expression, further supported by accessible online resources and specialized tools.
• Insights By Settings: Urban settings account for the largest share of the U.S. home improvement market. High population density in urban areas creates a strong demand for home improvement products. With a mix of housing types, urban residents prioritize functional and aesthetically pleasing living spaces. Demand is also significant for outdoor living spaces and interior upgrades. Continued urbanization further drives the addition of new rooms and garages, contributing to market growth.
• Insights By Distribution Channel: The offline segment leads the U.S. home improvement market, capturing over 76% of market share. Brick-and-mortar stores provide a broad range of products, allowing customers to physically interact with items and receive expert guidance. Local retail chains are strategically specializing in areas like hardware and decorative items, and are actively adapting to changing consumer preferences to ensure future competitiveness.

REGIONAL ANALYSIS

The South region holds the largest share of the U.S. home improvement market. This is attributed to its rapid population growth, abundance of single-family homes, and favorable climate. Homeowners in the South invest significantly in outdoor living spaces, climate-related repairs, and energy efficiency. The warm climate drives demand for outdoor amenities and frequent home system maintenance. Investments in energy-efficient upgrades, such as roofing and window replacements, are common to enhance storm resistance and reduce energy costs.

VENDOR LANDSCAPE

This report features exclusive data on 26 vendors in the competitive U.S. home improvement market. Leading companies, including Menards, Tractor Supply, and Masco, provide a wide array of products and services, competing on price, customer satisfaction, and product choice. The integration of smart home technology is opening new avenues for innovation, and companies are leveraging digital tools like AR/VR to enhance customer engagement. The market is also seeing a surge in demand for energy-efficient and sustainable solutions, driving product development in these areas.