Home Improvement Retail Market: Market Size, Trends and Growth Analysis
Table of Content
Many regions in the U.S. are experiencing favorable economic conditions that tend to coincide with remodeling activity, such as strong growth in both employment and home value. As home prices continue to rise, more homeowners are choosing to invest in home improvements and renovations. According to the Joint Center for Housing Studies, there is a proven connection between changes in median home values and home improvement spending. Homeowner equity assures homeowners that they can indeed afford the projects they could not afford during the great recession. With a nationwide shortage of housing and record-high home prices, more homeowners prefer to stay in their properties versus move or upgrade to new ones.
The home improvement industry has many avenues for potential franchisees who take pride in working with their hands and are committed to bringing high-quality, affordable service to their community. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text. This is also one of the only project categories that have seen a continuous uptick in popularity from 2015 to 2020. The majority (74.6%) of home improvement contractors are men, and the average annual salary of someone in this position is $35,233. This is especially true if you consider painting a room a home renovation.
Financial Services & Investing
In 2020, the federal government spent a total of $190,722,126 on Home Improvement Centers. It has awarded contracts to 19 companies, with an average value of $10,038,007 per company. A low turnover rate may point to overstocking, obsolescence, or deficiencies in the product line or marketing effort. The market research on Home Improvement Centers measures how efficiently the company leverages its assets to generate profit. The largest countries in each region are mapped according to their revenue contribution to the market. For prospective franchisees unfamiliar with the home improvement industry, Screenmobile offers comprehensive blueprints for training, setup, and support plans to give the franchisee a clear outline for success.
After that, bathroom products have the utmost importance for sales and marketing, because they will definitely sell. All houses have these two parts, so one way or the other, every house will need this renovation. Make up $32 billion of Canada’s DIY and home renovation industry market size.
Industry
Innovation in products, cost control, supply chain and logistics management will further drive this industry. The analysis data is based on current and historical market trends which help in investment related decisions. The Europe home improvement market size is poised to hold more than USD 315.5 billion revenue in 2027.
Moreover, the prominence of e-commerce and availability of technologically advanced systems upgrades will propel home remodeling activities globally. Home improvement can encompass a project as simple as repainting a room or as complex as gutting an interior. Homeowners are increasingly choosing the do-it-yourself or DIY option, and big-box stores such as Home Depot make it easier than ever.
Home Improvement, Home Maintenance, & Emergency Spending
More specifically, 32% of homeowners who completed home improvement projects painted their home’s interior, 28% remodeled a bathroom, and 27% installed smart devices. This growth is due to several factors, including the growing popularity of smart home technology and the increasing number of rental home landlords who are improving their properties to meet growing demand. One of the most common issues necessitating an upgrade in an older home is electrical systems not being grounded or able to handle the load that a modern household’s appliances can place on it. If a homeowner purchased a home with service lower than 100 amps or charming antique knob-and-tube wiring, they might find a hard time finding an insurance carrier who will insure the property. Aging plumbing and electrical systems can keep a homeowner awake at night. Statistics show owners of more modern homes tend to spend more on emergency repairs.
In this housing market, the business of the upkeep, maintenance, and improvement of existing properties flourishes. The DIY Home Improvement market is worth USD XX million in 2018 and is predicted to reach USD XX million with the stop of 2025, growing at a CAGR of XX% between 2019 and 2025. The examination covers historic know-how evaluation from 2015 to 2018, and marketplace forecast for 2019 to 2025 supported revenue generated. Thus, Lucintel compiles vast amounts of data from numerous sources, validates the integrity of that data, and performs a comprehensive analysis on it. Lucintel then organizes the data, its findings, and insights into a concise report designed to support the strategic decision-making process. The figure below is a graphical representation of the Lucintel research process.
People are staying in their homes longer, which means there are older homeowners with more equity in their properties, due to rising real estate prices and homeowner wealth. In turn, homeowners have been able to tap into this equity for home improvements. As much as Home Depot reassures homeowners that “you can do it and we can help,” more than four out of five homeowners hire professional and licensed specialists to assist with projects. 51% of homeowners hired licensed tradesmen such as plumbers or electricians, 36% hired a construction manager, and 20% chose to hire a designer or architect.
They stock vast selections of materials that would have been found mainly in contractor supply houses even a decade ago. Tool and equipment rental stretches the budget and increases accessibility to homeowners who would never be able to afford a project otherwise. A total of 28 figures / charts and 5 tables are provided in this report to help in your business decisions. To learn the scope of, benefits, companies researched and other details of home improvement retail market report, download the report brochure. Market size by state reveals local opportunity through the number of companies located in the region. Data by state can be used to pinpoint profitable and nonprofitable locations for Home Improvement Centers companies in the United States.
While interior painting and bathroom remodeling regularly make the list of most popular home improvement projects, this is the first year that smart home device installations made the top three list. The most popular home improvement projects in 2021 were interior painting projects, bathroom remodels, and smart home device installations. This is an increase of 3.8% from the number of remodeling businesses that existed in 2021, and the number of these businesses has grown an average of 3.8% each year from 2017 to 2022.
Those who are qualified to do the work themselves may make significant changes more often as well. 56% of homeowners said they intended to hire a professional to complete all or part of their home improvement projects in 2021. 50% of homeowners plan to do their home improvement projects themselves. A major remodel runs closer to $66,200 on average, and for those who hire a professional designer, a project will cost between $48,000 and $90,000. Keep in mind that these are pre-pandemic prices, and the cost of labor and materials has only gone up since then.
The system boosts convenience, accessibility & safety, and allows users to access their homes completely through a single touch screen panel system. The integration of IoT has facilitated interconnection of lighting, audio, video, cameras, HVAC, and door access from conveniently located panels inside the premises. In addition, with connectivity to security systems, it is possible to monitor an entire property using smartphones and tablet apps from any remote location. Home Improvement Market size surpassed USD 762.9 billion in 2020 and is estimated to exhibit a CAGR of over 4.3% from 2021 to 2027. Shifting preferences of homeowners for energy-efficient and luxurious living spaces are significantly contributing to the industry expansion. Rapid urbanization along with government initiatives to provide incentives & tax credits on green building construction has stimulated the market growth.
These are managed through an app on a phone, on a computer, or another interface. Thought leadership in Wall Street Journal, Financial Times, Bloomberg, etc. The kitchen gets the most attention in the home renovation plans of Canadians. 182 branches and shops all across Canada in all the provinces, with the highest number of stores being 88 in Ontario.
Home Improvement Market Company Includes Major Key Players Are:
We wanted to know whether the home improvement industry market size will become smaller or not. While one might think the smart home is the domain of the millennial, many individuals are turning to smart technology to help aging members of their families. This growing demographic of baby boomers who are homeowners are making plans to live in their homes longer. Smart thermostats help seniors regulate both the temperature and the utility bills. Security systems and electronic door locks can keep things safe and allow family members to monitor the home.
28% of property owners indicate that renovating is a more affordable option than buying a property that would be more aligned with their needs. Homeowners in the U.S. indicate that improving the design and functionality of their homes is typically the most significant consideration when planning a remodeling project. In the age of Pinterest and a surging number of millennial homeowners who share their lives on social media, the appearance of one’s surroundings and home becomes increasingly important.
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