The home improvement landscape is vast, ranging from industry growth to design trends. In this article, we explore the essential statistics in 2024. We get insights on homeowners’ spending habits and the state of the home improvement market, discover emerging interior design shifts, and examine the return on investment for popular projects. Read on for a comprehensive view of where the home remodeling industry stands today.
Home Improvement Spending
General Spending
Spending on homeowner improvements and repairs surged by 81% from 2014 to 2023.
A decrease of $30 billion is predicted between 2023 and 2024.
Naperville (IL) ranks as the most expensive city for home remodeling, while McAllen (TX) ranks as the cheapest city for home remodeling.
Although those cities rank highest and lowest in home remodeling costs, when compared to average income, the least affordable city for home remodeling is Detroit, MI, where costs equal 220.9% of the median household income. In contrast, the most affordable city is Frisco, TX, where remodeling expenses account for just 43.51% of the median household income.
Spending per household
The median annual spending per household on home improvements was $24,000 in 2023, which is 60% higher than the median spending in 2020 ($15,000).
There is an anticipated 37.5% reduction in planned annual household spending on home improvements for 2024 compared to spending in 2023.
It’s predicted that homeowners will spend $15,000 on home remodeling in 2024, which is equivalent to the spending in 2020.
In 2023, the planned spending was also $15,000, but actual expenditures exceeded this by almost 67%.
According to 85% of experts, homeowners are devoting a quarter of their home remodeling budget to outdoor projects in 2024.
The projects U.S. homeowners spend the most money on in total are roofing, kitchen remodeling, HVAC, and bathroom remodeling. A homeowner can expect to spend the following averages:
$15,159 to $27,580 on a roof replacement
$56,116 - $104,438 on a full kitchen remodel
$4,500 - $9,000 on a bathroom remodel
The cost of an HVAC project can vary widely depending on the type of system and other factors.
State of the Industry, Growth, and Predictions
The home improvement market size surged by 69% from 2014 to 2023, with a decrease of $21.5B between 2022 and 2023, the first decrease seen in the past 10 years.
The U.S. home improvement market is projected to further expand by an additional 10% from 2024 to 2027.
Since 2019, the number of businesses in the U.S. remodeling industry has surged by 350,000, marking a 74% increase over the past five years.
The number of women in construction has increased by 60.5%, growing from 802,000 in 2012 to 1.29 million in 2023.
Projects for Selling and ROI
Sellers should improve the curb appeal before listing a home for sale, says 92% of experts.
70% of professionals say an updated outdoor living space has a big impact on home value.
Curb appeal projects take the lead in terms of ROI in 2024, with garage door replacement at the top of the list, boasting an impressive return on investment of 193.9%.
An outstanding majority of experts agree that when selling, it is best to go with warm neutral colors for interiors (81%), and white or natural wood stains for exteriors (49% and 48%, respectively).
Top 10 projects with the highest ROI in 2023
Three projects are said to have an ROI of over 100% in 2024.
4 out of the top 5 ROI projects are exterior projects, all with an ROI of above 90%.
Entry door replacement is the cheapest project on this list, with an average cost of $2,355 and an ROI above 188%.
Top 2024 Trends in Home Remodeling
Hardwood floor refinishing is the home improvement project considered to bring the greatest happiness, with a rating of 100%.
In 2024, 61% of experts surveyed think having a kitchen island is the number one priority for home buyers.
Mixing materials is a top trend among homeowners this year, according to 62% of experts surveyed for our Kitchen and Bathroom Trends Report.
Homeowners prioritize storage in kitchens, according to 83%.
Spa-like design is the most popular bathroom trend, according to 56% of the experts surveyed.
According to 46% of professionals, earthy tones are one of the most popular color palettes, followed closely by 41% who say warm neutrals.
The most popular interior color for 2024, chosen by 48% of surveyed experts, is warm white.
81% of experts say that the powder room is the most popular place for wallpaper in 2024.
According to 78% of experts, the biggest outdoor living trend this year is a cohesive indoor-outdoor design.
Conclusion
Homeowners are planning to reduce their home improvement budgets in 2024, and predictions indicate that total home improvement spending will decrease.
In 2024, home trends are all about getting closer to nature. People are combining indoor and outdoor living spaces more, and they're also choosing materials and colors that look more natural.
Irena is an industry analyst and financial content specialist at Fixr.com, where she transforms complex data into clear insights to help homeowners make smarter financial decisions. With a background in personal finance research and writing since 2018, she brings years of experience in helping readers understand how to maximize their home investments. Her work has been featured on reputable websites, including Washington Examiner, Yahoo Finance, Fox40, and Forbes.
References
JCHS - Historical benchmark data, input correlations, and weights
Statista - Home improvement market size in the United States from 2008 to 2027
Ibis World - Remodeling in the US - Number of Businesses
Frontdoor - The Most and Least Expensive U.S. Cities for Home Remodeling
Houzz - 2024 U.S. Houzz & Home Study