Report Overview

United States Home Improvement Market is growing rapidly due to increasing disposable income among the population and the rising demand for better and convenient amenities among interior designers, homeowners, and builders will propel the rapid growth of United States Home Improvement Market. Tech-savvy millennials are becoming familiar and more inclined toward the short-term plans when it comes to housing investments. Increasing number of private rented houses in the U.S. has significantly supported several innovations and new & improved techniques for home improvement needs escalate the market growth.

United States Home Improvement Market - Industry Trends & Forecast Report 2028

The United States home improvement market is expected to grow at a CAGR of 5.7% during the forecast period (2022-2028). The reason for the rapid development of the home improvement market is a combination of factors such as lower loan interest rates and higher real estate costs. Population growth, employment growth, urbanization expansion, domestic and international migration, and the innovative products offered by the company are some of the key factors in this market that contribute to the rapid expansion of the market.

Homeowners are rapidly adopting integrated home control systems as one of the most popular technologies. This technology enhances simplicity, accessibility, and security by allowing users to control the entire home from a single touchscreen panel. Thanks to IoT integration, lighting, audio, video, cameras, HVAC, and door access can be connected from conveniently located panels on the premises. In addition, the connectivity of the security system allows you to monitor the entire property from a remote location using the app on your smartphone or tablet. As a result, these factors are expected to drive the home refurbishment market.

The United States Home Improvement Market - Overview

Home improvement refers to the process of remodeling or adding products related to home decor, gardening, or other similar household chores. Other home improvement terms include remodeling and renovating. According to home remodeling statistics and trends, the average cost of all types of home remodeling, decoration, and repair, in 2020 was USD 15,000. Advancement of the construction industry, which is working towards refurbishment and renovation of old homes to modernize and increase investment in the sector, also supports market growth. Home equity has doubled in the last five years, investment in home remodeling has increased, and the market is growing. Rapid urbanization, government initiatives to provide green building tax credits, and growing awareness of green buildings and housing will continue to contribute to the growth of the U.S. home improvement market for the projected years.

United States Home Improvement Market Forecast and Trends

Growth Drivers

Elevating prices of new homes and increasing transfer of ownership

Due to the high prices of new homes and lands, the construction industry is working on refurbishing and renovating old homes to modernize and increase investment in the sector. The increase in the development of the housing renovation market is due to some factors like lower lending rates and higher real estate costs. Population growth, employment growth, urbanization, domestic and international migration, and the innovative products the company offers are some key factors in this market driving demands for home improvement. Home equity has doubled in the last five years, investment in home remodeling has increased, and the market is growing. The tendency to remodel and decorate the interior and exterior of homes will support the growth of the industry during the forecast period.

Increasing spending by people on modernization of the aging infrastructure

Market growth can be attributed to the rapidly growing disposable income of the region's population, leading to increased spending on home improvement projects. Therefore, new household items are preferably installed with an attractive and appealing finish. The largest national home improvement market will be held by The United States in 2020. Given GDP and changing lifestyle patterns, they are expected to maintain their first position in the market. People with high incomes and multiple homes are more likely to renovate and modernize their homes. In 2018, 25% of households spent USD 10,000 to USD 25,000 on home renovation and refurbishment projects.

Restraints

Limited availability of skilled labor to meet fluctuating consumer demand

Fluctuating costs and the limited availability of skilled workers hinder the market growth during the forecast period. Moreover, COVID-19 infection is having a negative impact on the industry situation. Coupled with lower consumption, the large gap between supply and demand is also hampering the industry.

Impact of COVID-19 on United States Home Improvement Market

The arrival of the COVID-19 pandemic has hit the U.S. home improvement market brutally. A level of recession due to restrictions on economic activity directly affected consumer disposable income and purchasing power. As a result, the majority of consumers have postponed their plans to invest in home renovations, causing huge losses to industry players. In addition, supply chain limits and norms of social distance have also influenced market growth. Adoption of growth strategies such as geographic expansion and strategic investment from key players to address losses. For example, in December 2020, Home Depot opened two new distribution centers in New Jersey and Perth Amboy to support the growing demand for sustainable and flexible delivery options in the COVID-19 pandemic, especially for home renovations. In addition, the company has expanded a new education and employment program, the initiative of "PATH TO PRO", to certify employees through education campaigns. The company has invested about $ 50 billion in the program to reduce the skill gap by educating its workers.

United States Home Improvement Market - By Project

On the basis of the project, the United States home improvement market is segmented into DIY and DIFM. DIY (Do It Yourself) market will be the fastest growing market during the forecast period. The rapid growth of e-commerce sales channels is driving demand for DIY (Do It Yourself) home improvement solutions. DIY is preferred by the majority of customers because it saves money, creates satisfaction, and allows customers to customize their projects. End users are involved in these initiatives, and no other third parties are involved. Providing psychological rewards that provide social connectivity, multiple skills development, high flexibility, and effective use of resources expands the size of the industry.

United States Home Improvement Market - By End Use

By End Use, United States home improvement market is segmented into Kitchen Improvement & Additions, Bath Improvement & Additions, System Upgrades, Exterior Replacements, Interior Replacements, Property Improvements, Disaster Repairs, and Other Room Additions & Alterations. The exterior replacement parts segment is expected to account for the largest share in the U.S. home improvement market during the forecast period. This segment will dominate the entire home improvement market as consumer trends shift to outdoor recreation. Exterior refurbishments include wall repainting, window and door upgrades, and garden accessories. These add unique value to the look of the enclosure, as well as improve performance and structure. For example, siding is a major exterior refurbishment among homeowners, improving the look and appearance of outdoor spaces. Changes in consumer preferences for polymer and vinyl siding, which provide a view similar to real wood grain, drive the growth of this segment.

United States Home Improvement Market - Regional Insights

By States, the United States home improvement market is segmented into Oklahoma, Louisiana, Georgia, Hawaii, North Carolina, Nevada, Tennessee, Texas, Washington, Illinois, Rest of States. Among all, Oklahoma has the highest share of the United States home improvement market. The U.S. Home Improvement industry is the 7th retailer in terms of market size and the 51st largest retailer in the United States. The market size of the U.S. Home Improvement industry has grown at an average annual rate of 5.3% between 2017 and 2022, and by the end of 2022 expected growth rate is 1.5%.

Competitive Landscape

The U.S. home improvement market is highly fragmented due to the presence of many local and international suppliers. Key Players operating in the United States Home Improvement Market are ABC Supply Co., Inc., ACE Hardware Corporation, Andersen Corporation, APCO Industries, Ferguson Enterprises, Floor & Decor Holdings Inc., JELD-WEN, Kohler Company, Lowe's Companies, Inc., Lumber, M Company, Masco Corp, Menard, Inc., Pella Corporation, The Home Depot U.S.A., Inc., The Sherwin-Williams Co, True Value Company. Market leaders maintain their growth advantage by investing in research and development, incorporating cutting-edge technology into their products, and releasing improved items to their customers. Various tactics are used, including strategic alliances, agreements, mergers, and partnerships.

Recent Development

• February 2022 – Lowe's Companies Inc., an American Home Improvement company, has announced a partnership for the same-day delivery of home improvement products with Instacart, an online grocery platform in North America.

• November 2021 - Block Renovation, a US-based Home Improvement technology platform, announced that it had raised a USD 50 million investment in Series C by Softbank Vision Fund 2.

Scope of the Report

By Project

• DIY

• DIFM

By End Use

• Kitchen Improvement & Additions

• Bath Improvement & Additions

• System Upgrades

• Exterior Replacements

• Interior Replacements

• Property Improvements

• Disaster Repairs

• Other Room Additions & Alterations

By Sourcing

• Homeware Stores

• Franchised Stores

• Specialty Stores

• Online Sales Channel

• Others (Direct Sellers, General Merchandised Retailers, etc.)

By Product:

• Building and Remodeling (Building Supplies, Electricals, Heating and Cooling, Plumbing)

• Home Decor (Decor, Flooring, Kitchen and Bath, Lighting and Fans, Paints, etc.)

• Outdoor Living (Books, Cleaning and Janitor, Garden Center, Outdoor Power Equipment)

• Tools and Hardware (Hand Tools, Hardware, Power Tools, Safety and Security)

By States:

• Oklahoma

• Louisiana

• Georgia

• Hawaii

• North Carolina

• Nevada

• Tennessee

• Texas

• Washington

• Illinois

• Rest of States