U.S. Home Improvement & Remodeling Market Research Report 2026-2031

The U.S. home improvement and remodeling market is expected to grow at a CAGR of 2.79% from 2025 to 2031.

KEY TAKEAWAYS

• Project Type: The remodeling & renovations segment accounted for the largest market share of around 53%.
• Execution Type: The DIFM (Do-It-For-Me)/Professional represents the largest execution type segment, accounting for 72% of the market in 2025
• Sales Channels: The offline/store-based channel remained a dominant sales channel in the U.S. home improvement & remodeling market in 2025.
• Region: The South region dominates the US home improvement & remodeling market with the largest share of 38%.

RECENT DEVELOPMENT IN THE U.S. HOME IMPROVEMENT & REMODELING MARKET

• On April 7, 2026, Ace Hardware partnered with Uber Eats to provide on-demand and scheduled delivery from thousands of stores across all 50 US states, expanding customer access to home improvement essentials through Uber's delivery platform.
• On March 6, 2025, The Home Depot launched Magic Apron, a proprietary generative AI platform designed to provide customers with personalized product recommendations, project guidance, and home improvement expertise across its digital channels.
• On March 5, 2025, Lowe's introduced Mylow, its first AI-powered virtual home improvement advisor, providing customers with personalized project guidance, product recommendations, and real-time home improvement support.
• On April 16, 2025, Ferguson announced the acquisitions of Independent Pipe & Supply Corp. and National Fire Equipment Ltd./National Fire Fabrication Ltd., strengthening its commercial plumbing, mechanical, fire protection, and fabrication capabilities while expanding its presence across the US Northeast and the Canadian market.

U.S. HOME IMPROVEMENT & REMODELING MARKET TRENDS

Rise in Demand for Sustainable Building Materials

The shift toward sustainable home improvement practices is increasingly extending across both interior and exterior remodeling projects, as homeowners become more conscious of the long-term environmental and maintenance benefits of the materials they choose. This trend is driving greater adoption of durable, recycled-content, energy-efficient, and low-maintenance products that can reduce resource consumption while improving the overall performance and longevity of residential properties. Products such as composite decking, engineered wood siding, fibre cement siding, composite windows, recycled-content flooring, low- and zero-VOC paints, and water-efficient fixtures are increasingly replacing conventional materials in remodeling projects.

These products not only support sustainability goals by incorporating recycled materials, reducing emissions, and improving resource efficiency, but also offer greater durability and require less frequent maintenance and replacement. As a result, homeowners are increasingly viewing sustainable materials as a cost-effective long-term investment that can enhance property value, reduce ongoing maintenance costs, and contribute to more environmentally responsible homes.

Increased Availability of Energy-Efficient Home Solutions

The U.S. home improvement and remodeling market is witnessing a continued shift toward improving the overall energy efficiency of residential properties. Rather than replacing individual products or systems, homeowners are increasingly undertaking comprehensive energy-efficiency upgrades that combine HVAC systems, water heating equipment, insulation, windows, roofing, and electrical infrastructure. This integrated approach enables homeowners to improve the overall energy performance of their homes, reduce energy consumption, and achieve long-term savings on utility costs.

In addition, rising electricity costs, increasingly stringent building energy-efficiency standards, and federal and state incentive programs are encouraging homeowners to modernize aging residential systems. These factors are supporting the replacement of older gas-powered systems with electric alternatives, including heat pumps, electric water heaters, and other high-efficiency equipment. The growing availability of incentives, combined with advances in electric technologies and increasing awareness of energy efficiency, is further encouraging homeowners to adopt electrification solutions as part of broader home renovation and remodeling projects.

U.S. HOME IMPROVEMENT & REMODELING MARKET ENABLERS

Growing Preference for Aging-in-place Renovations

The growing preference for aging-in-place renovations has emerged as one of the key drivers of the U.S. home improvement and remodeling market. Rather than relocating to assisted living facilities or downsizing, older homeowners are increasingly choosing to modify their existing homes to support long-term independent living, comfort, and safety. This trend is being reinforced by a combination of demographic and economic factors, including the rapid aging of the U.S. population, rising healthcare and senior living costs, and substantial home equity accumulated by baby boomers. In addition, the ongoing housing market lock-in effect, driven by homeowners' reluctance to give up favourable mortgage rates and take on higher borrowing costs, is discouraging many older homeowners from relocating.

As a result, homeowners are increasingly investing in renovations such as accessible bathrooms, wider doorways, improved lighting, stair-free living areas, and other modifications that enable them to remain safely and comfortably in their existing homes for longer periods.

Government Led Incentive Programs

Government-backed housing improvement initiatives remained an important demand catalyst for the U.S. Home Improvement & Remodeling market in 2025 by stimulating renovation activity across energy efficiency, housing rehabilitation, disaster recovery, accessibility improvements, and affordable housing preservation.

While exclusive aesthetic remodeling slowed amid elevated interest rates and cautious consumer spending, federal, state, and local programs continued to channel investments toward essential home upgrades, enabling homeowners to undertake projects that might otherwise have been postponed.

U.S. HOME IMPROVEMENT & REMODELING MARKET RESTRAINTS

Skilled Labor Shortages Delaying Projects

The severe shortage of skilled trade professionals emerged as one of the most significant operational challenges for the US home improvement and remodeling market in 2025. A persistent deficit of licensed electricians, plumbers, HVAC technicians, roofers, carpenters, framers, and finish trades constrained the industry's ability to meet sustained remodeling demand.

Rather than being a cyclical labour imbalance, this shortage reflected a long-term structural issue driven by an aging workforce, an inadequate pipeline of younger skilled workers, immigration-related labour disruptions, and decades of underinvestment in vocational education.

U.S. HOME IMPROVEMENT & REMODELING MARKET SEGMENTATION INSIGHTS

INSIGHT BY PROJECT TYPE

The remodeling & renovations segment accounted for the largest market share of around 53%. This segment includes a wide range of projects, such as kitchen and bathroom upgrades, exterior renovations, outdoor living spaces, flooring, painting, room conversions, and other structural or aesthetic improvements to existing homes. High mortgage rates and subdued existing home sales are encouraging homeowners to enhance their current properties rather than relocate, supporting investments aimed at improving comfort, functionality, and long-term property value. However, spending is becoming increasingly selective and value-conscious, with homeowners often opting for phased, room-by-room upgrades instead of large-scale, debt-funded renovations.

INSIGHT BY EXECUTION TYPE

The DIFM (Do-It-For-Me)/Professional segment represented the largest execution type segment, accounting for 72% of the U.S. Home Improvement & Remodeling market in 2025. The segment comprises projects executed by licensed contractors, remodels, electricians, plumbers, HVAC technicians, roofers, painters, and other specialized professionals. These projects typically require technical expertise, specialized equipment, and compliance with building codes and permit requirements.

Accordingly, DIFM primarily encompasses large-scale and complex projects, including structural renovations, kitchen and bathroom remodeling, roofing, plumbing and electrical upgrades, HVAC replacements, and other specialized improvements where professional workmanship, quality, safety, and regulatory compliance are critical.

INSIGHT BY SALES CHANNELS

Physical channels continue to play a central role in the U.S. Home Improvement & remodeling market, covering both product purchases and the in-person procurement of home improvement services. These channels provide homeowners and professional contractors with access to a wide range of materials, products, technical guidance, and specialized services required to execute remodeling and maintenance projects.

Big-box home improvement retailers, neighbourhood hardware stores, specialty showrooms, flooring warehouses, paint stores, and professional building material suppliers serve as key physical touchpoints where customers can purchase materials, seek technical advice, and hire or arrange contracting, installation, repair, and maintenance services.

U.S. HOME IMPROVEMENT & REMODELING MARKET REGIONAL ANALYSIS

South region dominates the U.S. home improvement & remodeling market, by emerging as both the largest and fastest-growing regional hub. It accounts for over 38% of the market share. The region's leadership is underpinned by established Southeast housing markets and rapidly expanding Southwest and Sun Belt economies, where continued population inflows and residential development are supporting sustained remodeling activity.

South benefits more directly from migration-driven housing demand. Homebuyers moving into the region are generating opportunities for pre-occupancy renovations, home personalization after purchase, expansions, and value-enhancing upgrades. This has also strengthened demand for professional contractors, particularly for modernization, structural improvements, HVAC work, and specialized remodeling services.

Climate resilience is another defining feature of Southern remodeling demand. Given exposure to hurricanes, heavy rainfall, heat, flooding, and other extreme-weather conditions, homeowners are increasingly prioritizing weather-resistant exterior systems, roofing upgrades, impact-resistant entry doors, exterior cladding, drainage solutions, and foundation-related improvements. Exterior replacement projects are particularly attractive in the region, with garage-door and steel-entry-door replacements delivering returns exceeding 200% across several Southern divisions.

The Midwest has one of the largest concentrations of older housing stock in the US after the Northeast, with major industrial metropolitan areas such as Chicago, Detroit, Cleveland, Cincinnati, and Milwaukee containing a significant proportion of homes constructed before 1980. The aging housing stock is contributing to sustained demand for renovation, modernization, repair, and other home improvement projects as homeowners seek to upgrade outdated systems and improve overall property functionality.

U.S. HOME IMPROVEMENT & REMODELING MARKET COMPETITIVE LANDSCAPE

The US home improvement and remodeling market exhibits a moderately consolidated retail and distribution structure, with major home-improvement retailers, specialty suppliers, and building-material distributors capturing a significant portion of product sales. However, the remodeling, installation, repair, and maintenance services segment remains highly fragmented, comprising a large number of local, regional, and trade-specific contractors. Competitive dynamics are increasingly focused on expanding distribution networks, strengthening relationships with professional contractors, diversifying specialized product offerings, and delivering integrated project support. In addition, market participants are pursuing acquisitions and strategic partnerships to expand geographic presence, strengthen technical capabilities, improve operational efficiency, and gain access to high-value professional remodeling segments.

Key Company Profile

Key Vendors

• The Home Depot, Inc.
• Lowe's Companies, Inc.
• Ferguson Enterprises, Inc.
• Builders FirstSource, Inc.
• ABC Supply Co., Inc.
• Ace Hardware Corporation
• Masco Corporation
• Floor & Decor Holdings, Inc.
• Stanley Black & Decker, Inc.
• Fastenal Co.

Other Prominent Vendors

• 84 Lumber Company
• Menards
• JELD-WEN Holding, Inc.
• Tractor Supply Co.
• The Sherwin-Williams Company
• Advanced Drainage Systems, Inc.
• Wayfair Inc.
• FirstService Corporation
• Kohler Co.
• DuPont de Nemours, Inc.
• Pella Corporation
• Groundworks, LLC
• Renuity
• Empire Today
• BELFOR Holdings, Inc.
• Great Day Improvements, LLC
• Crane Renovation Group
• Harvey Building Products
• Amazon
• Walmart

Segmentation By Project Type

• Remodeling & Renovations
• Repair & Maintenance
• Smart & Energy-efficient Upgrades

Segmentation by Execution Type

• DIY
• DIFM/Professional

Segmentation by Sales Channel

• Offline / Store Based
• Online / E-commerce

Segmentation by Region

• South
• West
• Midwest
• Northeast

KEY QUESTIONS ANSWERED:

1. What is the growth rate of the U.S. home improvement & remodeling market?

2. How big is the US home improvement & remodeling market?

3. Which region dominates the U.S. home improvement & remodeling market?

4. What are the key trends in the U.S. home improvement & remodeling market?

5. Who are the key vendors in the U.S. home improvement & remodeling market?