Home improvement has surged over the last decade, and insights project that the market will continue rising into next year. Data from Harvard’s Joint Center for Housing Studies tracks home improvement spending to measure remodeling activity, which has trended upward. Considering the industry will only continue to grow larger, remodelers and contractors can capitalize on market growth moving forward.
Since 2015, home improvement spending jumped 82% from $277 billion to $502 billion in 2024, with an expected increase of $9 billion before the end of 2025. Median annual spending on home improvement projects grew 60% between 2020 and 2023 alone, going from $15,000 to $24,000.
While the pandemic played a large part in the home improvement boom, the expected fizzling-out is not quite as dramatic as anticipated. Planned household spending on home remodeling dropped in 2024, and the predicted spending in 2025 matches 2020’s number of $15,000. Nevertheless, the market is still surging far beyond pre-pandemic numbers, having grown by about 70% between 2015 and 2024.
Starting at $339 billion in 2014, remodeling business growth and market expansion raised the home improvement market size to $574 billion in 2024. The market size is expected to reach $593 billion in 2025 and $615 billion in 2026.
Renovating outdoor living spaces and curb appeal projects offer the highest return on investment, keeping them in high demand. Interior design projects have typically seen a desire for storage space solutions as the top priority for many homeowners. Kitchen space remodeling and spa-like bathroom redesigns are also high priorities according to the experts surveyed.
