8 Top Trends in Homeowner Readiness To Spend on Home Improvement Projects in 2024
The home improvement market is showing signs of revitalization.
According to Home Improvement Research Institute,
What Trends are Driving Homeowner Readiness in the Home Improvement Industry?
Inflation, rising remodeling costs, and stagnated incomes are influencing homeowner readiness within the home improvement industry in 2024, although not equally across the board. Certain demographics remain interested and eager to take on new projects, while others are more hesitant or might choose smaller DIY projects instead of large-scale remodels and renovations.
Here is a look at some of the top trends that continue to shape homeowners perspectives on home improvement in 2024:
1. Increasing Home Renovation Costs Lead to More DIY
Renovation and remodeling costs remain high in 2024 as a result of steep prices for raw materials, variations in the labor market, and general inflation. We’ve seen how this trend influences the behaviors and decisions made by homeowners.
For example, as a response to the increased costs for home improvement over the past 12 months, about a third of homeowners simply delayed a project or chose to focus on one larger-scale project and not complete other home improvement projects.
For small projects, homeowners simply tend to use less expensive materials. Looking forward, they plan to undertake more DIY projects — especially for those in the less-than-$5,000 range — and only utilize contractors for larger-scale projects. However, despite a rollback in numerous discretionary categories, homeowners still plan to spend about the same or more — rather than less — on home improvement, while deprioritizing home goods and décor, going out to eat, entertainment, and vacations.
2. The Home Improvement Market is Slowly Increasing
The home improvement market experienced a spike in growth in 2020 and 2021, and then sharply declined the following year. After a small drop of 1.5% in 2023, we are starting to see a little growth this year, according to HIRI’s Monthly Economic and Industry Update from June 2024. That growth should continue steadily from 2025 to 2028, resulting in a roughly $642.3 billion home improvement products market by the end of the forecasted period. The professional market was hit hardest in 2023, but is expected to increase steadily during the next couple of years.
3. Household Income Drives Home Improvement Spending
Household income is one of the best indicators of home improvement spending. In the past few years, lower- and middle-income households had discretionary income and were able to secure financing with lower rates. However, the market has drastically shifted in the past year and nearly all homeowners are feeling the impacts of inflation. The new economic environment sees higher interest rates for low- and middle-income homeowners, who are simultaneously experiencing steady or worsening incomes, savings account balances, and discretionary income.