U.S. Remodeling Market Size & Share Analysis - Key Trends, Future Opportunities, Growth Strategies, and Forecasts (2025

Description

The U.S. remodeling market was valued at USD 531.3 billion in 2024 and is expected to grow to USD 724.2 billion by 2032, advancing at a compound annual growth rate (CAGR) of 4.1% during 2025-2032. This growth is driven by several factors, including increasing residential property prices, aging housing stock, and rising consumer interest in sustainable and energy-efficient renovations. The trend of working from home, coupled with federal and state tax incentives for energy-efficient renovations, is also contributing to the market's expansion. For instance, through the Home Energy Rebate Program under the Inflation Reduction Act, the Department of Energy offers up to USD 14,000 per household for energy-efficient upgrades, further fueling home renovation activities.

Homeowners are increasingly investing in remodeling projects to enhance their living spaces, boost property values, and meet personal lifestyle preferences. Renovations, particularly in kitchens, bathrooms, and outdoor spaces, are becoming more popular as part of these improvements. Additionally, with the limited availability of new homes and rising mortgage rates, many individuals are opting to remodel their existing homes instead of purchasing new properties, further driving the demand for home renovations.

Key Insights

The U.S. remodeling market is projected to grow from USD 531.3 billion in 2024 to USD 724.2 billion by 2032, with a CAGR of 4.1%.

The largest segment in the market is general contracting, which holds a 35% share in 2024, as homeowners prefer hiring a primary contractor to manage large-scale remodeling projects due to the complexity of renovations.

The residential category dominates the market, holding a 70% share, with kitchen and bathroom renovations being key drivers of demand. Rising mortgage rates and limited housing availability are prompting more extensive home remodeling efforts.

Wood is the most commonly used material for remodeling projects, holding a 30% share in 2024, due to its availability, aesthetic appeal, and cost-effectiveness.

Retail stores lead the market for material distribution, making up 75% of the share in 2024, driven by major home improvement chains like The Home Depot, Lowe's, and Menards.

Professional installation is the largest installation type, accounting for 65% of the market share, as comprehensive renovations require skilled professionals to meet compliance and safety standards.

Smart home integration is the leading technology in the market, holding a 35% share, with consumers increasingly investing in automated systems for lighting, security, and energy efficiency.

The South region holds the largest share of the market, at 45%, driven by population growth and a strong focus on energy-efficient and storm-resistant renovations in states like Texas, Florida, and Georgia.

The West is the fastest-growing region, with an increasing demand for sustainable and green building technologies driving renovation projects.

Key players in the market include D.R. Horton, Lennar Corporation, Toll Brothers, KB Home, and The Home Depot, which are actively expanding their market presence through strategic acquisitions and investments in home improvement services.

Product Code: 13528

Chapter 1. Research Scope

1.1. Research Objectives
1.2. Market Definition
1.3. Analysis Period
1.4. Market Size Breakdown by Segments
- 1.4.1. Market Size Breakdown, by Service Type
- 1.4.2. Market Size Breakdown, by Application
- 1.4.3. Market Size Breakdown, by Material
- 1.4.4. Market Size Breakdown, by Distribution Channel
- 1.4.5. Market Size Breakdown, by Installation Type
- 1.4.6. Market Size Breakdown, by Technology
1.5. Market Data Reporting Unit
- 1.5.1. Revenue
1.6. Key Stakeholders

Chapter 2. Research Methodology

2.1. Secondary Research
- 2.1.1. Paid
- 2.1.2. Unpaid
- 2.1.3. P&S Intelligence Database
2.2. Primary Research
2.3. Market Size Estimation
2.4. Data Triangulation
2.5. Currency Conversion Rates
2.6. Assumptions for the Study
2.7. Notes and Caveats

Chapter 3. Executive Summary

Chapter 4. Market Indicators

Chapter 5. Industry Outlook

5.1. Industry Background
5.2. Market Dynamics
- 5.2.1. Trends
- 5.2.2. Drivers
- 5.2.3. Restraints/Challenges
- 5.2.4. Emerging Economies and Key Opportunities
- 5.2.5. Impact Analysis of Drivers/Restraints
5.3. Impact of COVID-19
5.4. Sociopolitical Impact
5.5. Porter's Five Forces Analysis
- 5.5.1. Bargaining Power of Buyers
- 5.5.2. Bargaining Power of Suppliers
- 5.5.3. Threat of New Entrants
- 5.5.4. Intensity of Rivalry
- 5.5.5. Threat of Substitutes
5.6. Innovation and Technology Trends
5.7. Economic and Regulatory Impact
5.8. Market Entry Strategies

Chapter 6. Competitive Landscape

6.1. List of Market Players and their Offerings
6.2. Market Share of Key Players (2024)
6.3. Competitive Benchmarking of Key Players
6.4. Product Benchmarking of Key Players
6.5. Recent Strategic Developments by Key Players
6.6. Company Leadership Matrix

Chapter 7. U.S. Market

7.1. Overview
7.2. Market Revenue, by Service Type (2019-2032)
7.3. Market Revenue, by Application (2019-2032)
7.4. Market Revenue, by Material (2019-2032)
7.5. Market Revenue, by Distribution Channel (2019-2032)
7.6. Market Revenue, by Installation Type (2019-2032)
7.7. Market Revenue, by Technology (2019-2032)
7.8. Market Revenue, by Country (2019-2032)

Chapter 8. Northeast Market

8.1. Overview
8.2. Economic Indicators
8.3. Demographics and Population Insights
8.4. Regional Hotspots
8.5. Growth Drivers
8.6. Challenges and Barriers
8.7. Competitive Strategies
8.8. Emerging Players
8.9. Import/Export Policies
8.10. Compliance Requirements
8.11. Emerging Investment Areas
8.12. Major Ongoing Projects
8.13. Market Size and Forecast
- 8.13.1. Market Revenue, by Service Type (2019-2032)
- 8.13.2. Market Revenue, by Application (2019-2032)
- 8.13.3. Market Revenue, by Material (2019-2032)
- 8.13.4. Market Revenue, by Distribution Channel (2019-2032)
- 8.13.5. Market Revenue, by Installation Type (2019-2032)
- 8.13.6. Market Revenue, by Technology (2019-2032)

Chapter 9. Midwest Market

9.1. Overview
9.2. Economic Indicators
9.3. Demographics and Population Insights
9.4. Regional Hotspots
9.5. Growth Drivers
9.6. Challenges and Barriers
9.7. Competitive Strategies
9.8. Emerging Players
9.9. Import/Export Policies
9.10. Compliance Requirements
9.11. Emerging Investment Areas
9.12. Major Ongoing Projects
9.13. Market Size and Forecast
- 9.13.1. Market Revenue, by Service Type (2019-2032)
- 9.13.2. Market Revenue, by Application (2019-2032)
- 9.13.3. Market Revenue, by Material (2019-2032)
- 9.13.4. Market Revenue, by Distribution Channel (2019-2032)
- 9.13.5. Market Revenue, by Installation Type (2019-2032)
- 9.13.6. Market Revenue, by Technology (2019-2032)

Chapter 10. West Market

10.1. Overview
10.2. Economic Indicators
10.3. Demographics and Population Insights
10.4. Regional Hotspots
10.5. Growth Drivers
10.6. Challenges and Barriers
10.7. Competitive Strategies
10.8. Emerging Players
10.9. Import/Export Policies
10.10. Compliance Requirements
10.11. Emerging Investment Areas
10.12. Major Ongoing Projects
10.13. Market Size and Forecast
- 10.13.1. Market Revenue, by Service Type (2019-2032)
- 10.13.2. Market Revenue, by Application (2019-2032)
- 10.13.3. Market Revenue, by Material (2019-2032)
- 10.13.4. Market Revenue, by Distribution Channel (2019-2032)
- 10.13.5. Market Revenue, by Installation Type (2019-2032)
- 10.13.6. Market Revenue, by Technology (2019-2032)

Chapter 11. South Market

11.1. Overview
11.2. Economic Indicators
11.3. Demographics and Population Insights
11.4. Regional Hotspots
11.5. Growth Drivers
11.6. Challenges and Barriers
11.7. Competitive Strategies
11.8. Emerging Players
11.9. Import/Export Policies
11.10. Compliance Requirements
11.11. Emerging Investment Areas
11.12. Major Ongoing Projects
11.13. Market Size and Forecast
- 11.13.1. Market Revenue, by Service Type (2019-2032)
- 11.13.2. Market Revenue, by Application (2019-2032)
- 11.13.3. Market Revenue, by Material (2019-2032)
- 11.13.4. Market Revenue, by Distribution Channel (2019-2032)
- 11.13.5. Market Revenue, by Installation Type (2019-2032)
- 11.13.6. Market Revenue, by Technology (2019-2032)

Chapter 12. Company Profiles

Chapter 13. Appendix

13.1. Sources and References
13.2. Related Reports

U.S. Remodeling Market Size & Share Analysis - Key Trends, Future Opportunities, Growth Strategies, and Forecasts (2025 - 2032)