US Home Improvement Statistics (Updated June 2023)
Recent reports show that the average U.S. homeowner spent an estimated $8,484 on various home improvement projects around their living spaces during 2022. According to CBS News, this works out to a national average of $567 billion for home improvements and repairs in that year, which is a 15% increase from 2021. Although interest rates are expected to fluctuate in 2023, experts believe that at least 50% of homeowners will continue to make home improvements to their properties.
That said, this article takes a look at the top home improvement projects that may be trending in 2023. We’ll also review a few of the more significant statistics that define recent U.S. home improvements and explore the costs of home improvement projects that Americans are investing in. Keep reading to see how this all stacks up!
Key Stats of U.S. Home Improvement
To understand the current state of U.S. home improvements, consider these interesting statistics.
- The Joint Center for Housing Centers of Harvard University (JCHS) has found that American home improvement spending was around $472 billion in 2022.
- Kitchen upgrades and additions make up about 30% of all U.S. home improvements.
- New roofing and garage door upgrades are the top exterior remodeling projects that provide 100% ROI to your home value.
- About 80% of American homes are older than 20 years, making them susceptible to renovations and upgrades.
- A global focus on solar conversions has led to around 22 million. homeowners resorting to installing solar products as part of their home remodels.
- For the most part, 91% of homeowners have declared that their homes need some sort of home improvement.
- Smart home automation has grown by 20% every year since 2016 and is a popular aspect of U.S. home improvements.
- Home remodeling generate about $369 billion in revenue in 2021.
- The average spend on lower-budget projects has increased to $15,000 while higher-budget projects have elevated to $85,000.
- Including new roofing and garage doors offers homeowners 100% ROI.
- S. homeowners performed 38% more bathroom renovations in 2021 than the previous year.
- New homeowners spend an average of $30,000 on home renovations.
- At least 42% of U.S. homeowners declare that they have undertaken home renovations due to the effects of climate change.
- 84% of U.S. homeowners planned to complete a home improvement project related to heating and cooling in 2022/2023.
- The global DIY home improvement market is expected to grow to $94,07 billion by 2027.
- About 46% of American homeowners are performing home renovations to decorate rather than improve their homes.
- According to IBIS WORLD, there are 3,718 home improvement stores across the U.S.
- Both Lowe’s and Home Depot have a 30% market share in the home improvement industry.
- At least 37% of Americans prefer to do their home renovations themselves rather than hire a professional contractor.
- American homeowners renovate their homes roughly every 3-5 years.
- The average cost to hire a house painter ranges around $2.75 per square foot, but this depends on the area and contractor used.
- About 35% of homeowners painted their indoor walls in 2020, making interior painting one of the more popular home improvements.
- There are an estimated 588,806 small remodeling businesses in the U.S. as of 2023, showing an increase of 2,6% from 2022.
- In 2021, the most popular home improvement project was painting, bathroom renovations and smart home device applications.
- Reports show that 39% of homeowners in the U.S. renovate to increase the enjoyment of their homes.
- With an average energy bill of $122 per month, many Americans are opting to switch to renewable solar energy.
- Projects involving electrical applications make up at least 48% of renovations.
- An average of 61% of Americans would rather renovate their existing homes than move and uproot their families.
- On average, 20% of living rooms are renovated to increase the space and comfort of the area.
- The Inflation Reduction Act of 2022 offers at least $8,000 in tax credits or rebates when homeowners make specific energy improvements to their homes.
A Breakdown of U.S. Home Improvements
According to an article published in 2023, about 80% of houses in the U.S. are at least 20 years old, making home improvements, remodeling, and repairs necessary. Studies also show that about 40% of homeowners in the U.S. own their homes outright which means monies that were previously spent on mortgages can now be redirected to home improvement budgets.
Furthermore, at least 3 in 5 homeowners (about 61%) have declared that they plan to remain in their current homes for at least another 11 years following current renovations. That said, let’s take a look at a few of the more common renovations that U.S. homeowners are doing.
Source: gobankingrates.com, cbsnews.com, getonedesk.com, businessofhome.com, houzz.com
1. Home Security
Home security still remains one of the more popular home upgrades that U.S. homeowners are investing in. Recent years have seen an increase of 18% on the traditional home security features. The most common upgrades in home security include the following:
- Installation or upgrade of Smart security technology (77% of millennial homeowners prefer to install smart security features)
- Upgrades for alarm or detection systems
- Installations of garage door openers
- Addition or upgrades of cameras, video doorbells, or intercom systems
- Increasing general outdoor security
- Installing motion-sensitive and even solar lighting in outdoor spaces and gardens
Source: ipropertymanagement.com
2. Kitchens and Bathrooms
Kitchens and bathrooms remain the top interior spaces that are being renovated. In fact, 30% of kitchens and 27% of bathrooms underwent some sort of remodeling activity in 2022. This is a 1% increase for both spaces from their 2021 estimates. The same report also shows that both kitchens and bathrooms commanded the highest median spend at $20,000 and $13,500 respectively.
Frequency of and Median Spend on Top Interior Room Renovations Among Homeowners Who Renovated in 2022.
Some of these renovations include simple tasks such as repairing tiling, painting, removing, and replacing door and cabinet knobs and fixtures. Other improvements may be more extensive and include complete bathroom makeovers and replacing or upgrading kitchen cabinets. Flooring upgrades in these high-traffic areas are also quite common. Many homeowners are also opting for luxurious finishes and modern features as this is an instant way to increase your property value.
Source: Houzz
3. Energy Updates
Another renovation that is dominating home renovations has to do with sustainable, clean energy. With the global emphasis on renewable energy, solar installations are thriving. On average, 2022 saw U.S. homeowners installing enough solar panels to power 22 million homes throughout the country.
This means that an impressive 46.1 gigawatts of energy was added to the American energy grid at the beginning of 2022 and came directly from solar energy. The report also shows that despite the rising cost of solar installations in 2021/2022, this doesn’t compare to the astronomical inflating costs of the more traditional non-renewable energy sources such as natural gas, oil, and coal.
Source: ecowatch.com, eia.gov
4. Necessary Repairs and Cosmetic Updates
Despite more extensive home improvements being done, there are some homeowners who can’t afford the high-dollar remodels. With some tighter budgets around, some homeowners opt to tackle their smaller repairs one at a time, or as funds allow.
In 2021/2022, about 55% of U.S. homeowners opted to do many minor renovations themselves rather than enlist the services of professional contractors. With an abundance of DIY tutorials on platforms such as YouTube, TikTok and Facebook, it’s easy for homeowners to learn how to do minor upgrades on their own. With hundreds of home improvement channels, it’s easy for U.S. homeowners to find the perfect DIY guidance for their renovations.
These types of upgrades include installing or renovating the following:
- New plumbing fittings
- Indoor and exterior painting
- Replacing wooden structures
- Adding new and often, sustainable light fixtures
- Minor adjustments to create a home office space
In fact, the 2020 Consumer Affairs Report highlights the following necessary repairs done by homeowners around their homes.
| Types of Repair Done | Percentage of Repairs Done by Homeowners |
|---|---|
| Plumbing systems | 27.94% |
| Air conditioning | 23.67% |
| Addition or repair of smoke detectors | 18.89% |
| Repair or addition of heating systems | 20.44% |
| Refrigeration repairs | 22.7% |
| Electrical repairs or upgrades | 28.00% |
Source: rubyhome.com, consumeraffairs.com
5. House Painting Services
One of the quickest ways to give your home a quick makeover is with a fresh coat of paint. Not only will it give your home a new look, but quality paint can also reduce mold, improve air quality and beautify your home. That said, the current house painting service market in the U.S. has a CARG of 3.8% and this market is expected to grow to 5.2% between 2023 and 2033.
Source: globenewswire.com
6. Outdoor Improvements
In addition to performing repairs to the interiors of their homes, U.S. homeowners are also making large upgrades and changes to their outdoor spaces. According to a report from Angi, almost 19% of all American home improvements will center around outdoor leisure improvements.
Several of the top outdoor home improvements include the following:
- Outdoor entertainment areas
- Pool upgrades and renovations
- Landscape additions and upgrades
- Creating or remodeling existing patios, decks and balconies
- Upgrade windows and doors to more energy-efficient products
- Replacement of an old or dated garage door
- Repair or upgrade roofing and add insulation
- Renovate the front door and entrance area
- Lawn replacements
- Building raised bed gardens to grow vegetables to increase sustainability and combat high food costs
Source: Angi.com
7. Home Renovations for Addressing Natural Disasters
It’s no secret that certain areas in America experience a high level of natural disasters such as earthquakes, wildfires, floods, and of course hurricanes. Many areas seeing an increase in these natural disasters are also seeing an increase in home and property damage. At least 42% of homeowners have declared that the bulk of their home improvement projects were undertaken as a result of damage caused by natural disasters.
Source: usnews.com
How Big is the Home Improvement Industry in the U.S.?
Studies have shown that the home improvement industry in the U.S. has grown by at least 3%. After spending a whopping $538 billion on home improvements in 2021, property renovation sales are projected to reach an even more impressive $625 billion in 2025.
About 46% of homeowners hired specialty contractors to perform more labor and skill-intensified renovation jobs such as kitchen and bathroom remodels. With that in mind, hardware retailers who work in the home improvement industry are looking at being part of global revenues worth more than $1 trillion between 2023 and 2027.
Here’s a brief look at the top five areas commonly associated with home improvement projects.
| Home Improvement Projects | Percentage of Households |
|---|---|
| Interior wall and ceiling painting | 32.2% |
| Bathroom remodeling | 27.7% |
| Adding smart home devices | 27.1% |
| Installing or replacing existing flooring | 26.1% |
| Landscaping and gardening | 24.7% |
The Home Improvement Retail Industry in the U.S. Continues to Grow
A quick look at the steady revenue growth (in real-time)of the top home improvement retail stores is a clear indication that the industry is growing at a rapid rate. Top stores such as Home Depot, Lowes, Menards, and Ace Hardware are the firm favorites when it comes to U.S. homeowners buying their own renovation materials.
As a retail dominator, Home Depot has seen an increase in sales for a variety of DIY-related home renovation products. This is easily confirmed by looking at their recent revenue figures:
- Indoor gardening: 9.52% of total revenue ($14.99 billion)
- Appliances: 9.18% of total revenue ($14.46 billion)
- Electrical/lightning: 8.73% of total revenue ($13.74 billion)
- Lumber: 8.55% of total revenue ($13.46 billion)
- Plumbing: 8.00% of total revenue ($12.6 billion)
Research has shown that not all areas of the U.S. see similar spending on home improvements. Costs may vary extensively on renovations, remodels, and upgrades and these are essentially based on homeowner demographics and location. That’s because building materials may be cheaper in some states.
The cost of living in certain states may also be cheaper, freeing up more money for home improvement projects. Here’s a list of states that currently have the highest average expenditure per household project.
| State | Average Improvement Project Cost |
|---|---|
| North Carolina | $4,682 |
| Georgia | $4,664 |
| Missouri | $4,576 |
| Texas | $4,282 |
| Pennsylvania | $4,206 |
| New York | $4,144 |
| Illinois | $4,022 |
| Florida | $3,889 |
| California | $3,508 |
| Ohio | $3,397 |
With the varying costs in different U.S. states, it’s interesting to see what the average spend for various renovation projects costs. Here’s a breakdown of the top costs from 2021/2022.
| Common Remodeling Projects | Average Cost |
|---|---|
| Kitchen | $15,000 |
| Master bathroom | $9,000 |
| Guest bathroom | $4,400 |
| Family room | $4,000 |
| Master bedroom | $2,000 |
| Laundry room | $2,000 |
| Dining room | $1,900 |
| Guest bedroom | $1,275 |
| Home office | $1,200 |
| Closet | $1,000 |
Source: angi.com, rubyhome.com, statista.com, fourweekmba.com
What Value Do Home Improvements Add to U.S. Homes?
According to a report released by the Joint Center for Housing Centers of Harvard University (JCHS), Americans spent $363 billion on home improvements, renovations, and repairs in 2020 and $406 billion the following year. This was an 11.8% increase from 2020 and nearly three times the average annual growth of 4.4%. By 2022, homeowners’ spending rose to $472 billion.
According to many experts, the recent pandemic played a huge role in the boost within the home improvement industry. With homeowners restricted to their homes, it became the perfect opportunity for Do-it-Yourself improvements and renovations to soar. Additionally, home improvements are also an excellent way to increase ROI for any potential future sales.
Here’s a breakdown of how the most significant renovations improve your return on investment.
| Interior Remodeling Project | Return on Investment (ROI) Percentage |
|---|---|
| Hardwood flooring refinish | 147% |
| New wood flooring | 118% |
| Insulation upgrade | 100% |
| Basement conversion to living space | 86% |
| Closet renovation | 83% |
| Attic conversion to living space | 75% |
| Complete kitchen renovation | 75% |
| Bathroom renovation | 71% |
| Kitchen upgrade | 67% |
| Additional bathroom | 63% |
| Adding new bedroom | 56% |
Source: jchs.harvard.edu
How Does the House Flipping Industry Affect Home Renovations?
Another interesting reason that home renovations have peaked in recent years in the U.S. has to do with an increase in house flipping. Essentially, this is a budding market where investors are purchasing run-down homes, repairing them, and then reselling them for a considerable profit.
A report from Atom Data has shown that 407,417 single-family homes and condominiums were flipped (the process of buying, repairing, and reselling) across the U.S. in 2022. This has been a 14% increase from 2021 and a 58% increase from 2020. During the flipping process, temporary homeowners are performing basic repairs, upgrades, and renovations that turn old, broken-down houses into more livable homes.
Source: attomdata.com
The Bottom Line
Despite a global pandemic and impending recession in the 21st century, the home renovation industry continues to grow. Whether homeowners are remodeling their homes to improve their standard of living or simply to secure future investment, it’s worth noting that the growth in the U.S. home improvement industry is showing no signs of slowing down!
Home renovation statistics from around the world can be quite interesting! If you’ve found this article interesting, why not inspire others with these facts? Share this article with your family, friends and colleagues so they can also see how a few changes can be a good investment.
