Home Remodeling Market Size, Share, Growth & Industry Analysis, By Type (DIY, Professional), By Application (Kitchen, Bathroom, Exterior, Basement, Whole House), By End User (Residential, Commercial), and Regional Analysis, 2024-2031

Home Remodeling Market Size

The global Home Remodeling Market size was valued at USD 956.06 billion in 2023 and is projected to grow from USD 990.57 billion in 2024 to USD 1,315.74 billion by 2031, exhibiting a CAGR of 4.14% during the forecast period. Increased focus on outdoor living spaces and rising popularity of smart home integration are boosting the demand for home remodeling.

In the scope of work, the report includes services offered by companies such as Inter IKEA Systems B.V., Kohler Co., ANDERSEN CORPORATION, Masco Corporation, Bauhaus Modern Homes, Livspace, PELLA CORPORATION, JELD-WEN, Inc., MOHAWK INDUSTRIES, INC., HORNBACH HOLDING AG & CO. KGAA, and others.

The growth in home renovation services for rental properties presents a significant opportunity for the home remodeling market. As the demand for rental housing continues to rise, especially in urban areas where homeownership may be less attainable, property owners and managers are increasingly investing in renovations to attract and retain tenants. These renovations often focus on modernizing units, improving energy efficiency, and incorporating features that appeal to the growing number of young professionals and families seeking rental housing.

Upgrades such as new kitchen appliances, updated bathrooms, and enhanced living spaces can significantly increase the rental value of properties, making them more competitive in a crowded market. Additionally, property owners are recognizing the long-term financial benefits of regular renovations, as well-maintained properties are less likely to experience vacancy periods and can command higher rents. This trend has led to a surge in demand for specialized renovation services tailored to specific rental properties, offering a lucrative market segment for remodeling companies to explore.

Home remodeling refers to the process of making significant changes to a residential property to improve its appearance, functionality, or value. These changes can range from minor updates, such as painting and replacing fixtures, to more extensive projects like kitchen and bathroom renovations, adding new rooms, or completely altering the layout of a house.

The types of home remodeling can be categorized into interior remodeling, which includes upgrades to kitchens, bathrooms, living spaces, and bedrooms, and exterior remodeling, which covers enhancements to roofing, siding, landscaping, and outdoor living areas. Applications of home remodeling are diverse and include modernizing older homes, improving energy efficiency, expanding living spaces to accommodate growing families, and making homes more accessible for elderly or disabled residents.

The end users of home remodeling services are primarily homeowners looking to improve their living conditions or increase the market value of their properties. However, real estate investors, landlords, and property managers also constitute a significant portion of the market, especially in the context of rental property renovations.

Analyst’s Review

The home remodeling market is experiencing robust growth, driven by increasing consumer demand for personalized and sustainable living spaces. Companies operating in this sector are strategically focusing on innovation, customer engagement, and market expansion to capitalize on these trends.

Current growth strategies include the development of eco-friendly and energy-efficient products, as well as the integration of smart home technologies into remodeling projects. Additionally, companies are focusing on launching new products to enhance customer experience, offering virtual design consultations and using social media to showcase completed projects.

• In February 2024, Owens Corning began reviewing strategic alternatives for its global glass reinforcements (GR) business. The decision to explore alternatives for the GR business was consistent with the company’s strategy to focus on building and construction materials.

The imperatives for key players in the market involve staying ahead of design trends, maintaining a skilled labor force, and managing the rising costs of materials. To maintain a competitive edge, companies are also exploring strategic partnerships and acquisitions to expand their market reach and service offerings. As the demand for home remodeling continues to evolve, companies that can adapt to changing consumer preferences and deliver high-quality, innovative solutions are well-positioned for continued success in this dynamic market.

Home Remodeling Market Growth Factors

The increased focus on outdoor living spaces is a significant driver in the home remodeling market, reflecting a shift in how homeowners view their external environments. This trend has been fueled by a growing desire to extend living spaces beyond the confines of the home, which has increased the need for functional and comfortable outdoor areas.

Homeowners are increasingly investing in building decks, patios, outdoor kitchens, and landscaped gardens to create inviting spaces for relaxation, entertainment, and family gatherings. Additionally, the integration of amenities such as fire pits, pergolas, and outdoor lighting has become popular, further enhancing the usability and aesthetic appeal of these spaces. This trend is particularly strong in regions with favorable climates, where outdoor living can be enjoyed year-round.

Moreover, the emphasis on outdoor spaces aligns with broader lifestyle changes, as people seek to connect more with nature and prioritize wellness. For remodeling companies, this presents a lucrative opportunity to offer specialized services and products tailored to outdoor living, catering to a market segment that values both functionality and design.

However, the shortage of skilled labor is a constant challenge for the home remodeling industry, with significant implications for the market to meet the growing demand. As the industry experiences a surge in remodeling projects, the shortage of skilled workers, including carpenters, electricians, plumbers, and other tradespeople, has led to delays in project timelines, increased costs, and raised concerns about the quality of workmanship. This shortage is exacerbated by the aging workforce in the construction sector and the lack of young professionals entering these trades.

The impact of this shortage is felt across the industry, with companies struggling to scale their operations and maintain high standards of service. To mitigate this challenge, businesses are increasingly investing in training and apprenticeship programs to attract and develop new talent.

Additionally, the adoption of new technologies, such as automation and prefabrication, is being explored to reduce reliance on manual labor and improve efficiency. Collaboration with vocational schools and industry associations to promote the trades as a viable career path is also essential in addressing the skilled labor gap and ensuring the industry's long-term sustainability.

Home Remodeling Market Trends

The growing demand for sustainable remodeling is a prominent trend shaping the future of the home remodeling market. This trend is reflected in the rising popularity of sustainable materials, such as reclaimed wood, low-VOC paints, and recycled metals, as well as the integration of energy-efficient systems like solar panels, smart thermostats, and high-efficiency HVAC units.

The shift toward sustainability is not only about environmental responsibility but also about the long-term financial benefits, as energy-efficient homes can significantly reduce utility costs and increase property values. Green buildings are now integral to residential construction, with increasing adoption of sustainable practices.

• In January 2024, the U.S. Green Building Council (USGBC), a leading authority in green building and developer of the LEED program, released its annual Top 10 States for Leadership in Energy and Environmental Design (LEED) Leadership. New York being on top, is leading the nation in green building based on LEED-certified square footage per capita.

Furthermore, government incentives and regulations promoting green building practices have accelerated the adoption of sustainable remodeling, making it a key consideration for both homeowners and remodeling professionals. For companies in the home remodeling market, this trend presents an opportunity to differentiate their offerings by focusing on sustainable practices, catering to a growing segment of eco-conscious consumers who value both quality and sustainability in their home improvement projects.

Segmentation Analysis

The global market has been segmented on the basis of type, application, end user, and geography.

By Type

Based on type, the market has been bifurcated into DIY and professional. The professional segment captured the largest home remodeling market share of 57.09% in 2023, largely due to an increasing number of homeowners opting for skilled professionals to handle complex home remodeling projects. As remodeling projects become more sophisticated, involving structural changes, advanced technology integration, and adherence to strict building codes, the need for professional expertise has surged.

Homeowners recognize that professionals bring a higher level of craftsmanship, experience, and knowledge of the latest industry trends, which ensures the quality and longevity of the renovations. Moreover, the increasing awareness of the potential risks associated with DIY projects, such as safety hazards and costly mistakes, has driven more people toward professional services.

Additionally, professionals can often provide comprehensive project management, handling everything from design to execution, which appeals to busy homeowners who lack the time or expertise to oversee a remodeling project. This trend is further supported by the availability of financing options and the increasing complexity of modern homes, which require specialized skills and tools that professionals are uniquely equipped to provide.

By Application

Based on application, the market has been classified into kitchen, bathroom, exterior, basement, and whole house. The bathroom segment is poised to record a CAGR of 4.38% over the forecast period, driven by a combination of factors that reflect changing consumer preferences and the evolving role of bathrooms in the home.

Modern bathrooms are increasingly viewed as sanctuaries for relaxation and personal wellness, leading to a surge in demand for luxurious, spa-like features such as rain showers, soaking tubs, and high-end fixtures. The growing trend toward aging-in-place renovations is also contributing to the segment’s growth, as homeowners seek to make their bathrooms safer and more accessible with features like walk-in showers, grab bars, and non-slip flooring.

• For instance, in May 2024, National Association of Home Builders (NAHB) Remodelers survey revealed that bathroom remodels are the most popular renovation projects as cited by 65% of remodelers, followed closely by kitchen remodels at 61%. This underscores the strong demand in the bathroom remodeling segment.

Additionally, there is a strong emphasis on sustainability and energy efficiency, with consumers increasingly opting for water-saving fixtures, energy-efficient lighting, and eco-friendly materials. The bathroom segment’s growth is further fueled by the rising number of remodeling projects aimed at increasing home value, as an updated bathroom is one of the most significant contributors to a property’s resale value.

By End User

Based on end user, the home remodeling market has been divided into residential and commercial. The residential segment garnered the highest revenue of USD 548.87 billion in 2023, propelled by several key factors that underscore the growing investment in home improvement and renovation projects. One of the primary drivers of this revenue growth is the increasing demand for personalized living spaces.

Homeowners are increasingly investing in remodeling projects to tailor their homes to their specific needs and preferences. This trend has been amplified by the rise of remote work, which has led many to create dedicated home offices and multifunctional spaces that enhance productivity and comfort. Additionally, the booming real estate market has encouraged homeowners to undertake renovations to increase their property’s value, particularly as housing prices continue to rise.

The availability of home equity loans and other financing options has also made it easier for homeowners to fund large-scale projects, further boosting the residential remodeling market. Moreover, there is a growing focus on sustainability and energy efficiency, with many homeowners investing in green renovations that reduce energy consumption and lower utility costs.

Home Remodeling Market Regional Analysis

Based on region, the global market has been segmented into North America, Europe, Asia-Pacific, MEA, and Latin America.

North America home remodeling market share accounted for 36.05% and was valued at USD 344.66 billion in 2023, reflecting the region's dominant position in the global market. This substantial market share is driven by several factors, including high disposable income levels, aging housing stock, and growing culture of homeownership in the region.

Homeowners in North America, particularly in the U.S. and Canada, are increasingly investing in remodeling projects to update and modernize their homes, whether for personal enjoyment, energy efficiency improvements, or increasing property value in a competitive real estate market. The region's mature market is also characterized by a high demand for professional services, with many homeowners opting to hire skilled contractors for complex renovations. These factors are expected to further fuel the market growth.

Moreover, the trend towards aging-in-place is particularly strong in North America, leading to a surge in renovations focused on accessibility and safety features for the elderly. Government incentives and rebates for energy-efficient upgrades have also spurred investments in green remodeling projects.

Asia-Pacific region is expected to grow at the highest CAGR of 4.54% over the forecast period, driven by rapid urbanization, rising disposable incomes, and increasing desire for improved living standards across emerging economies.

Countries such as China, India, and Southeast Asian nations are witnessing a significant rise in home remodeling activities as more homeowners seek to modernize their living spaces, often influenced by Western design trends and the growing popularity of smart home technologies. The booming real estate market in these countries is also a key factor, with both new homeowners and investors undertaking renovation projects to enhance property values and rental yields.

• According to Invest India, India's construction industry is projected to reach USD 1.4 trillion by 2025. With an estimated 600 million people expected to reside in urban centers by 2030, the demand for an additional 25 million mid-end and affordable housing units will be significant.

Additionally, the expanding middle class in Asia-Pacific is becoming more inclined toward investing in home improvements, particularly in energy-efficient and sustainable solutions, as awareness of environmental issues grows. Government initiatives promoting affordable housing and urban development are further supporting the market's expansion, providing a conducive environment for remodeling activities.

Competitive Landscape

The global home remodeling market report provides valuable insights, highlighting the fragmented nature of the industry. Prominent players are focusing on several key business strategies, such as partnerships, mergers and acquisitions, product innovations, and joint ventures, to expand their product portfolio and increase their market shares across different regions. Companies are implementing impactful strategies, such as expansion of services, investments in research and development (R&D), establishment of new service delivery centers, and optimization of their service delivery processes, which are likely to create new opportunities for market growth.

List of Key Companies in Home Remodeling Market

• Inter IKEA Systems B.V.
• Kohler Co
• ANDERSEN CORPORATION
• Masco Corporation
• Bauhaus Modern Homes
• Livspace
• PELLA CORPORATION
• JELD-WEN, Inc.
• MOHAWK INDUSTRIES, INC.
• HORNBACH HOLDING AG & CO. KGAA

Key Industry Developments

• April 2024 (Product Launch): Andersen announced the launch of the latest addition to its innovative product portfolio, a retractable screen for Andersen patio doors, which provides homeowners a seamless solution to fresh air and unobstructed views while keeping insects out, combining form with function for enhanced functionality and comfort.
• February 2024 (Product Launch): Kohler introduced Rista, a 3D-printed bathroom sink. Kohler’s revolutionary method of 3D-printing vitreous china is at the forefront of innovation in the industry. The 3D-printing process involves 6.5 hours of print time to build the sink’s unique design.

The global home remodeling market has been segmented:

By Type

• DIY
• Professional

By Application

• Kitchen
• Bathroom
• Exterior
• Basement
• Whole House

By End User

• Residential
• Commercial

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America