Home Remodeling Statistics and Trends of 2023

The home improvement landscape is vast, ranging from industry growth to design trends. In this article, we explore the essential statistics in 2023. We get insights on homeowners’ spending habits, discover emerging interior design shifts, understand homeowners’ top priorities, 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 78% from 2014 to 2022, with an increase of $65B between 2021 and 2022, which was the highest increase in the past 10 years.
The annual growth pace was more than double the historical average between 2019 and 2021, as the home remodeling industry was one of the few industries positively impacted by the pandemic.
The projects that homeowners invest the most money in are HVAC and roofing, amounting to $56.6 billion and $72 billion, respectively.
Sunnyvale (CA) ranks as the most expensive city for home remodeling, while Orlando (FL) ranks as the cheapest city for home remodeling.

Spending per household

The median annual spending per household on home improvements is $22,000 which is 69% higher than the median spending in 2019 ($13,000).
There is an anticipated 32% reduction in planned annual household spending on home improvements for 2023 compared to 2022.
It’s predicted that the homeowners will spend $15,000, which is equivalent to the spending in 2020.
65% and 71% of experts surveyed in Fixr.com's latest studies agree that homeowners are willing to spend more on a kitchen and bathroom remodel in 2023 respectively.
85% of experts say homeowners will devote a quarter of their home remodeling budget to outdoor projects
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:
- $17,750 to $33,037 on a roof replacement
- $56,116 to $104,438 on a full kitchen remodel
- $4,500 to $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 U.S. home improvement market experienced a remarkable growth of 79% between 2014 and 2023.
The U.S. home improvement market is projected to further expand by an additional 7.6% by the year 2025.
Since 2014, there have been 158,196 new remodeling businesses.
From 2018 to 2023, the number of businesses in the U.S. remodeling industry has increased by an average of 2.6% each year.
The number of women in construction has increased by 52.9%, from 840,000 women in 2013 to 1.28 million women in 2022.

Projects for Selling and ROI

92% of experts have suggested sellers improve their curb appeal before listing a home for sale.
HVAC electrification takes the lead in terms of ROI in 2023, boasting an impressive return on investment of 103.5%.
An outstanding majority of experts agree that when selling, it is best to go with warm neutral colors for interiors (82%), and white for exteriors (74%)

Top 10 projects with the highest ROI in 2023

A total of four projects are said to have an ROI of over 100% in 2023.
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 ROI above 100%.

Project	ROI 2022	ROI 2023	Change from 2022
HVAC Conversion \| Electrification	-	103.50%	-
Garage Door Replacement	93%	102.70%	9.70%
Manufactured Stone Veneer	91%	102.30%	11.30%
Entry Door Replacement \| Steel	64%	100.90%	36.90%
Siding Replacement \| Vinyl	67%	94.70%	27.70%
Siding Replacement \| Fiber-Cement	68%	88.50%	20.50%
Minor Kitchen Remodel \| Midrange	71%	85.70%	14.70%
Window Replacement \| Vinyl	68%	68.50%	0.50%
Bath Remodel \| Midrange	59%	66.70%	7.80%
Window Replacement \| Wood	66%	61.20%	-4.80%
Roofing Replacement \| Asphalt Shingles	60%	61.10%	1.50%

Homeowners’ Priorities

Hardwood floor refinishing is the home improvement project considered to bring the greatest happiness, with a rating of 100%.
In 2023, 98% of experts surveyed think having lots of natural light at home is very important or important for homeowners.
Around 85% of experts believe swimming pools are either ‘very important’ or ‘important’ to homeowners this year.
Other features that have become ‘very important’ or ‘important’ to homeowners in 2023 are extra space (77%), solar panels (75%), and electric vehicle chargers (67%).

Top 2023 Trends in Home Remodeling

Mixing materials and textures is a top trend this year, according to 74% of experts surveyed for our Kitchen Trends Report.
Wood-look and natural materials is the most popular bathroom trend, according to half of the experts surveyed for our Bathroom Trends Report.
Indoor-outdoor living areas are set to be the biggest trend this year, according to 73% of home construction professionals.
A combination of neutrals and vibrant colors is the top color palette choice for 2023, as indicated by 58% of experts.
The most popular color for 2023, chosen by 50% of surveyed experts, is terracotta.
96% of experts feel that wallpaper will continue to be a big trend in 2023.
65% of experts say that a smart thermostat is an energy-efficient feature that the majority of homeowners will be looking to install in their homes in 2023.
Electric will outnumber gas installations in new homes according to 67% of professionals.
44% of experts believe that the IRA is not enough to incentivize homeowners to carry out energy-efficient upgrades.

Conclusion

Despite homeowners intending to reduce their home improvement budgets in 2023, predictions for total home improvement spending still indicate an overall increase for the year.

In 2023, 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.

Author

Irena is an industry analyst at Fixr.com. She analyzes and looks for visual ways to simplify data. She has been researching and writing about home improvement and personal finance since 2018. At Fixr.com, she is constantly looking to give homeowners the best advice on how to invest in their homes.