U.S. Home Improvement And Remodeling Market Research Report, 2026-2031 2.79% CAGR Fueled By Professional Services, Energy-Efficient Upgrades, And Aging-In-Place Demand
Dublin, Oct. 05, 2026 (GLOBE NEWSWIRE) -- "U.S. Home Improvement & Remodeling Market Research Report 2026-2031" has been added to ResearchAndMarkets.com's offering.
The U.S. home improvement and remodeling market is projected to grow at a CAGR of 2.79% from 2025 to 2031. Market expansion is supported by aging housing stock, sustained renovation requirements, energy-efficiency investments, aging-in-place projects, government incentive programs, and homeowners' preference for improving existing properties rather than relocating.
Key Market Takeaways
- Project Type: Remodeling & renovations held the largest share at approximately 53%. Execution Type: DIFM/Professional accounted for 72% of the market in 2025. Sales Channel: Offline/store-based channels remained dominant in 2025. Region: The South led the market with a share of more than 38%.
Recent U.S. Home Improvement and Remodeling Market Developments
- On April 7, 2026, Ace Hardware partnered with Uber Eats to offer on-demand and scheduled delivery from thousands of stores across all 50 U.S. states. On March 6, 2025, The Home Depot introduced Magic Apron, a proprietary generative AI platform providing personalized product recommendations and project guidance through digital channels. On March 5, 2025, Lowe's launched Mylow, an AI-powered virtual advisor offering project assistance, product recommendations, and real-time support. On April 16, 2025, Ferguson announced the acquisitions of Independent Pipe & Supply Corp. and National Fire Equipment Ltd./National Fire Fabrication Ltd., expanding its plumbing, mechanical, fire protection, and fabrication capabilities.
Market Trends and Growth Drivers
Demand for sustainable building materials is increasing across interior and exterior remodeling projects. Homeowners are adopting durable, recycled-content, energy-efficient, and low-maintenance products to improve property performance while reducing resource consumption and long-term maintenance requirements. Key products include composite decking, engineered wood siding, fibre cement siding, composite windows, recycled-content flooring, low- and zero-VOC paints, and water-efficient fixtures. These materials can improve durability, lower replacement frequency, and support long-term property value.
Energy-efficient home solutions are also gaining momentum. Homeowners are increasingly combining HVAC upgrades, water heating equipment, insulation, windows, roofing, and electrical infrastructure within broader renovation plans. Rising electricity costs, stricter building standards, technology advances, and federal and state incentives are encouraging the adoption of heat pumps, electric water heaters, and other high-efficiency equipment.
Aging-in-place renovations represent another major market driver. Older homeowners are investing in accessible bathrooms, wider doorways, improved lighting, stair-free living areas, and related safety modifications. This demand is supported by an aging population, rising senior living costs, accumulated home equity, and the housing market lock-in effect associated with higher borrowing costs.
Government-backed programs continue to stimulate spending on energy efficiency, housing rehabilitation, disaster recovery, accessibility, and affordable housing preservation. These initiatives are helping sustain essential renovation activity even as elevated interest rates and cautious consumer spending limit discretionary aesthetic projects.
Market Restraints
Skilled labor shortages remain a significant operational constraint. Limited availability of licensed electricians, plumbers, HVAC technicians, roofers, carpenters, framers, and finish trades can delay projects and increase costs. The shortage reflects an aging workforce, an insufficient pipeline of younger workers, immigration-related labor disruptions, and long-term underinvestment in vocational education.
U.S. Home Improvement and Remodeling Market Segmentation
Project Type: Remodeling & renovations accounted for approximately 53% of the market. Demand covers kitchens, bathrooms, exteriors, outdoor living spaces, flooring, painting, room conversions, and structural improvements. High mortgage rates and lower existing home sales are encouraging property owners to renovate current residences. However, many consumers are prioritizing phased, room-by-room improvements over large-scale, debt-funded projects.
Execution Type: DIFM/Professional represented 72% of the market in 2025. Professional execution is particularly important for structural renovation, roofing, plumbing, electrical work, HVAC replacement, and kitchen and bathroom remodeling, where technical expertise, permits, safety, and building-code compliance are essential.
Sales Channel: Offline/store-based channels continue to lead product and service procurement. Big-box retailers, neighbourhood hardware stores, specialty showrooms, flooring warehouses, paint stores, and building-material suppliers provide materials, technical assistance, installation support, and access to contractors. Online / E-commerce channels are expanding as retailers invest in digital recommendations, project support, fulfillment, and delivery.
Regional Market Analysis
The South is the largest and fastest-growing regional market, accounting for more than 38% of U.S. demand. Population growth across the Southeast, Southwest, and Sun Belt is generating opportunities for pre-occupancy renovations, property personalization, home expansions, HVAC modernization, and structural upgrades.
Climate resilience is a major source of remodeling activity in the South. Exposure to hurricanes, heat, flooding, heavy rainfall, and other extreme-weather conditions is increasing demand for durable roofing, impact-resistant entry doors, exterior cladding, drainage systems, foundation improvements, and weather-resistant exterior products. Garage-door and steel-entry-door replacements have delivered returns exceeding 200% across several Southern divisions.
The Midwest also presents substantial opportunities because of its concentration of older homes. Metropolitan areas including Chicago, Detroit, Cleveland, Cincinnati, and Milwaukee contain significant housing stock built before 1980, supporting continued demand for modernization, repairs, system replacements, and functional upgrades.
Competitive Landscape
The U.S. home improvement and remodeling market has a moderately consolidated retail and distribution structure, while installation, repair, maintenance, and remodeling services remain highly fragmented. Competition centers on distribution expansion, professional contractor relationships, specialized product portfolios, digital capabilities, integrated project support, acquisitions, and strategic partnerships.
Key vendors include 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., and Fastenal Co.
Other prominent participants include 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, and Walmart.
Market Coverage
- By Project Type: Remodeling & Renovations, Repair & Maintenance, and Smart & Energy-efficient Upgrades By Execution Type: DIY and DIFM/Professional By Sales Channel: Offline / Store Based and Online / E-commerce By Region: South, West, Midwest, and Northeast
The market analysis addresses the industry's projected growth rate and size, regional leadership, major home improvement and remodeling trends, competitive conditions, and the vendors shaping U.S. market development through 2031.
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