Home Remodeling Statistics and Trends of 2025

The home improvement landscape is vast, ranging from industry growth to design trends. In this article, we explore the essential home renovation statistics in 2025. 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

According to the Joint Center for Housing Studies, home improvement spending is expected to rise. Here’s a look at how remodeling expenditures compare to previous years.

General Spending

Bar chart showing homeowner's improvements and repairs spending from 2015 to 2026

Spending on homeowner improvements and repairs surged by 82% from 2015 to 2024.
Homeowner spending is expected to increase by $9 billion between the last quarter of 2024 and the end of 2025.
The top five U.S. states taking the most home improvement loans¹ are Utah, Idaho, Rhode Island, New Hampshire, and Oregon.
These are the top ten U.S. cities where home remodeling is most affordable²:

Fort Worth, Texas
Miami, Florida
Atlanta, Georgia
Austin, Texas
Raleigh, North Carolina
Nashville, Tennessee
Jacksonville, Florida
Memphis, Tennessee
Houston, Texas
Mesa, Arizona

Spending per Household

The median annual spending per household on home improvement projects reached $24,000³ in 2023, which was 60% higher than the median spending in 2020 ($15,000⁴).
There was a 16.7% decrease in planned household spending in 2024 compared to 2023, with homeowners expected to spend $20,000⁵ on home remodeling. That is still higher than 2020 but lower than 2023.
Overall, from 2020 through 2024, the median household spending on home renovations increased by 33.3%.
For 2025, planned household spending is projected to drop further to $15,000⁶, returning to the same level as in 2020.
According to 56% of experts we surveyed, homeowners are prioritizing outdoor living and backyard upgrades in 2025 more than they have in the past.⁷
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:
- $7,500 to $14,000 on a roof replacement
- $15,000 to $45,000 on a full kitchen remodel
- $6,000 - $18,000 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

Bar chart showing home improvement market size from 2015 to 2026.

The home improvement market size surged by 69.61% from 2015 to 2024, with a decrease of $21.5B between 2022 and 2023, the only decrease seen in the past 11 years.⁸
The total home improvement market expanded by 3.7% to $574.3 billion last year, and it is projected to grow by an additional 3.4% in 2025, bringing the market size to $593.8 billion.⁹
In 2026, the total home improvement market is expected to reach $614.6 billion.
As of 2025, there are 726,026 remodeling businesses in the U.S., representing a 4.2% increase from 2024.¹⁰
Between 2020 and 2025, the number of remodeling businesses in the U.S. grew by 18.3%, adding approximately 111,800 new businesses over the five-year period.
The number of women in construction has increased by 45%, growing from 929,000 in 2015 to 1.34 million in 2024.¹¹
The U.S. home improvement market is predicted to reach approximately $688 billion by 2029.⁹

Projects for Selling and ROI

98% of industry professionals say an updated outdoor living space has a big impact on home value.⁷
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%.¹²
85% of experts surveyed agree that when selling a home, it is best to go with soft or warm whites for living areas, 76% say neutral colors for bedrooms, and 45% state that off-white is the best choice for exteriors.¹³

Top 10 projects with the highest ROI

Three projects are said to have an ROI of over 100% in 2024: garage door replacement, entry door replacement (steel), and manufactured stone veneer siding.¹²
4 out of the top 5 ROI projects in 2024 are exterior projects, all with an ROI of above 90%.
Entry door replacement is the cheapest project on 2024’s ROI list, with an average cost of $2,355 and an ROI above 188%.

Top 2025 Home Improvement Trends

Collage highlighting a mixed-materials kitchen, a spa-like bathroom design, a living room in earthy colors, and an inviting indoor-outdoor space.

In 2025, 94% of experts surveyed by Fixr.com believe thoughtfully designed storage spaces are the number one priority for home buyers.¹⁴
Mixing materials is a top trend among homeowners this year, according to 51% of experts surveyed for Fixr.com’s Kitchen and Bathroom Trends Report.¹⁵
Homeowners prioritize storage in kitchens, according to 57% surveyed for the report.¹⁵
Spa-like design is the most popular bathroom trend, according to 73% of the experts surveyed.¹⁶
60% of experts interviewed for the 2025 Interior Design and Color Trends Report agree that integrating nature into homes is the biggest interior design trend in 2025.¹³
Curves are a top interior design feature, according to 36% of professionals surveyed for the report.¹³
Color drenching is the most popular interior color trend, according to 55% of industry experts.¹³
According to 56% of top industry experts, the biggest outdoor living trend in 2025 is a cohesive indoor-outdoor design.⁷

Future of Home Remodeling

While many homeowners are planning to reduce their home improvement budgets in 2025, overall spending on renovations is still expected to increase. The industry is growing, with more businesses entering the market as people continue to invest in home remodeling projects. At the same time, contractors are adapting to labor and material challenges, finding ways to keep projects on track while meeting homeowners’ expectations.

In 2025, home trends are all about connecting with nature. Homeowners are blending indoor and outdoor living spaces and opting for natural-looking materials and eathy color palettesMultifunctional spaces, durable materials, and practical storage solutions will shape the next wave of home remodeling trends.

FAQ: Home Remodeling Statistics

In 2025, about 48% of homeowners plan renovations, with median household spending expected to reach $15,000. Overall, homeowner spending on home improvements is projected to increase by $9 billion by the end of the year.

The predicted growth is slowing slightly in 2025, but the industry is still expanding, with homeowner spending and business activity expected to rise moderately.

The 30% rule suggests that you should spend no more than 30% of your home’s value on renovations to maintain a good return on investment.

Popular trends include cohesive indoor-outdoor design, integrating nature, spa-like bathrooms, thoughtful storage, mixing materials, and color drenching.

Written by

Irena Martincevic Industry Analyst

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.

Sources

Home Improvement Spending

State of the Industry, Growth, and Predictions

Projects for Selling and ROI

Top 2025 Home Improvement Trends