Home improvement stores are a mature industry, dominated by major companies like Home Depot and Lowe’s. They serve various markets, including do-it-for-me (DIFM), DIY, and professional customers. The global home improvement market is valued at $342 billion in 2022 and is expected to grow from USD 364.9 billion in 2023 to USD 613.1 billion by 2031, growing at a CAGR of 6.7 in the forecast period. The DIY chain has been leading the home improvement market for years, while major competitors include Lowe’s, Ace Hardware, and Menards.
The pandemic has altered consumers’ view of home, with the global home improvement market worth $763 billion as of 2020. Between 2020 and 2027, the industry is expected to have a CAGR of over 4, resulting in a market value increase of more than 30. The National Home Improvement Association (NHPA) predicts that the overall U.S. home improvement retail market will hit approximately $566.1 billion in sales in 2022, representing a year-over-year growth of 5.9.
There are 3,630 businesses in the U.S. home improvement retailing market, which has grown at a CAGR of 0.2 between 2019 and 2024. The market value is forecast to exceed 600 billion in the United States, with home improvement sales expected to reach more than $620 billion by 2025.
The current market size for home improvement stores in the U.S. is about $235,279.8 million as of February 2022, with a roughly 63% growth in the services component. Consumer spending on goods rose 3.0. The market size for home improvement is projected to cross USD 797.8 billion by the end of 2036, expanding at a CAGR of 6.2 during the forecast period. The biggest drivers for retailer selection include good prices, convenient location, and availability and assortment of products.
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What is the most in demand home improvement?
Kitchen and bathroom remodeling is a high-demand service due to their essential role in a home, and modern designs can significantly increase property value. Energy-efficient home improvements like solar panels, windows, and smart home technology can reduce energy costs, increase home value, and contribute to environmental sustainability. Investing in landscaping and outdoor living spaces can enhance property aesthetics, create functional outdoor areas for relaxation and entertainment, and increase overall property value.
Which home improvement adds most value?
Kitchen upgrades can significantly increase a home’s value, with the best return on investment being between 32 and 86 percent of the cost. Minor kitchen remodels can cost around $25, 000, while major ones can cost between $75, 000 and $150, 000. Replacing or refreshing outdated cabinets can also increase the value of a home. Costs depend on the type of kitchen and materials used, with semi-custom cabinets costing between $150 and $400 per linear foot and custom cabinets costing between $500 and $1, 200 per linear foot.
What is the growth rate of home improvement retail?
The global home improvement market is projected to grow at a CAGR of over 4. 3 from 2021 to 2027, reaching a size of USD $798. 1 billion. This growth is attributed to factors such as the COVID-19 pandemic, fluctuating material costs, and worker shortages. Online sales are driving this growth, particularly among individual homeowners, who are attracted to DIY projects due to the ease and security of online ordering, convenient deliveries, and simplified applications.
Who is the largest home improvement retailer in the United States?
Home Depot, the largest US home improvement retailer, is headquartered in Onalaska, Wisconsin. It is a constituent of the New York Stock Exchange (NYSE), the Dow Jones Industrial Average (DJIA), the S&P 100, and the S&P 500. The company is overseen by a board of directors comprising Bernard Marcus, Arthur Blank, Ron Brill, Pat Farrah, and Ken Langone.
What is the forecast for home improvement sales?
The home improvement industry is experiencing significant growth globally, with the US market value predicted to exceed 600 billion dollars by 2027, more than double its 2008 value. This industry includes the sale of building materials, appliances, décor, and services offered by contractors, tradespeople, and workers. Homeownership is a significant part of the global economy, with many consumers seeking to make their homes more attractive and functional. In recent years, they have also started introducing integrated devices that automate various home functions. The home improvement industry is stronger than ever, with a strong market presence.
What is the future of the home improvement industry?
The home improvement market is expected to remain steady in the coming years, with a shift towards larger-scale renovations and construction work. In Q1 2024, spending surged by 19%, and households expected to start projects increased by 66% in Q2 2024. Italy and Poland are expected to spend the most on home improvements, followed by Germany and Sweden. The current state of the housing market, with rising prices and interest rates, has led to a drop in new build and increased demand for renovations and upgrades to existing homes.
This prolonged residency is driving demand for bathroom and kitchen remodels, additions, and energy efficiency improvements. Although this presents challenges for the real estate market, it also creates opportunities for the home improvement industry, as homeowners invest more in their properties, leading to a sustained demand for renovation services and products.
Are people spending money on home improvements?
In the year 2023, 51 homeowners collectively spent a sum of $25, 000 or more on home renovations, representing a consistent upward trend since 2020. Of this total, over one-third of the homeowners exceeded their initial budgetary constraints.
What is the outlook for home improvement retail?
The National Home Improvement Forecast (NHIF) projects that the U. S. home improvement retail market will reach $566. 1 billion in sales by 2022, representing a 5. 9% year-over-year growth.
Is a home improvement business profitable?
A home improvement franchise can be a profitable investment, allowing you to focus on running your business while leaving the technical work to trained professionals. Home Franchise Concepts, a leader in the industry, has been a parent company for nine superior home services brands, including Budget Blinds, PremierGarage, The Tailored Closet, Concrete Craft, AdvantaClean, Aussie Pet Mobile, Kitchen Tune-Up, Bath Tune-Up, and Two Maids.
To take advantage of the booming home improvement market, contact Home Franchise Concepts today and one of their franchise consultants will help you determine which award-winning brand is right for you.
What is the outlook for home improvement business?
The home improvement market is expected to grow slowly, with an average of 3 consumer market growth from 2026-2028 and 5 professional market growth from 2026-2028. Despite the housing market being in a subdued state in the U. S., the outlook for home improvement spending remains optimistic for the later half of 2024 and 2025. The latest Home Improvement Size of Market forecast is positive, with inflation stabilizing and a cut to federal interest rates anticipated later this year. Builder confidence is also recovering after sharp declines in 2022.
Are home improvement sales down in 2024?
Home renovation spending is predicted to decrease from $481 billion in 2023 to $450 billion in 2024, driven by high renovation costs, high interest rates, and lack of home sales. The Joint Center for Housing Studies of Harvard University’s Q4 2023 report revealed that home improvement spending is expected to drop by over $30 billion in 2024, but this decrease is expected to plateau by the end of the year.
The report, which identifies future turning points in the home improvement and repair industry, found a steady decrease in spending since Q3 of 2023. Experts recommend that homeowners focus on low-budget, high-impact projects to improve the livability of their homes.
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My dad is a GC and it’s wild to me that any homedepot within a 20 mile radius (15 stores) there is always a couple employees that approach him to just have a conversation. I think this is a big aspect a lot of people miss. Employees know their pro customers on a personal level, my father doesn’t have many friends outside of work & I think their are many old school family man immigrant GCs like him. That being said for any bulk purchase he has wholesalers to go to, homedepot mostly for tools and small items.
I believe you have it a bit wrong on why the pro sales have increased. They are not cheaper than specific suppliers, but are larger and have the material. The issue with the supply chain is why HD grew this base. Homes are being built out of HD because it’s the only place you can get material, not for any other reason.
I’m a licensed electrical contractor. I prefer HD simply because they usually have what I need – and not just electrical stuff either. I need shovels, garbage bags, garbage cans, paint, plywood, and a variety of other “things” to make my business work. Home Depot is good to me but I can see how a homeowner/ DIY’er can be frustrated with the store because they do lack in service when it comes to, “hey, what do I need to patch a leaky roof? Or, what size conduit do I need to run power to my shed?” Fortunately I know where everything is and how to use the HD app to find what I need and I very rarely ever speak to anyone inside the store. Lowes? Well, I rarely ever visit Lowes for anything. Also, Home Depot sells Milwaukee Tools and Lowes does not.
When I went USA 🇺🇸 in 1999, when USA 🇺🇸 was at its all time peak 🗻 from Pakistan 🇵🇰 a third world country at that time ⌚, I found home depot to be mini America 🇺🇸. Every thing you wanted to know how America 🇺🇸 and American people became the world 🗺 most powerful nation. ANSWER was home depot, It was the people who built a nation, not governments. ❤ Americans 🇺🇸 are perfectionist and to achieve perfection you have to do it yourself.
I was overworked, exploited, harassed and abused by the Home depot management team on 23rd Street in NYC. The Human Rights division followed up my complaints and found that I was right and tge Supervisors resposible were fired however I have never been compensated by Home depot. Years later my incident of filing reports, there was a murder suicide by an employee who shot his supervisor in that same store sadly in the lighting department. I know this store management needs to be held accountable for a lot of problems they cause especially against me when I received a lot of great recommendations through the Voice of the Customer website by Home Depot.
This is a commercial for a really bad business. You can buy water and Halloween props, but you can’t find any of the hardware item that are not top sellers. They concentrate on the most popular 75% of the items in any product line. You always come out unable to finish a project. Plus the prices on many small items are atrocious. I have blacklisted HD.
Yeah seeing a lot of people take like sink faucets with calls like for $500 taking them straight up to the return and get a gift card for change to something dating mirabai they need to change their policy when you buy something you can’t return it but you got a receipt another day do it with three times breakout but still people take advantage of that
I would like to know why this “largest Home-Improvement Retailer” doesn’t have American citizens doing their installation work. I just wanted to have some tile placed in my bathroom and they cannot provide me with 2 English speaking workers to do it. So, is that how they got their reputation as being the largest retailer? With cheap labor?
It should have said the largest chain of home improverment store. During the obama time when US and CH was in the best cozy relationships, the post TARP program had made HD in short supplies due to the super fast rise of home projects. Today, the price is spiral upward because of biden uncontrollable rising inflation. With new prime rate hiking from the fed and more possible t-notes auctions down the line, the economy would be more than likely to fall backward into the reccession bottom. Once the price is hiked, it ain’t falling back because the WS says it so! So be the chicago ME. We don’t have the super presidents in the modern day anymore. The national presidetial position is saleable as seen in 2016 when trump decided to buy his presidency at $200 M USD. He got the deal!