Last updated 2026-08-01. Feel free to cite these statistics - a link back to this page is appreciated.

Quick answer: The home improvement market is projected to reach $620 billion in 2026, driven by a 15% increase in DIY activity and an average renovation spend of $12,500 per household. Energy efficiency upgrades and smart home technology are seeing the fastest growth, with 30% of homeowners prioritizing these projects. This sector continues its expansion, reflecting sustained homeowner investment.

The home improvement industry continues its growth trajectory, shaped by economic shifts, changing homeowner preferences, and technological advancements. We've compiled the latest statistics for 2026, offering a clear snapshot of market size, consumer behavior, and emerging trends. These numbers provide valuable insights for homeowners, contractors, and businesses looking to understand the current landscape. You'll find that certain types of projects are gaining traction, while others maintain their perennial popularity.

Market Size and Economic Impact

The home improvement market is a significant economic force, showing consistent expansion over recent years. Its growth reflects both an aging housing stock and homeowners' desire to personalize their living spaces. It's a sector that truly impacts local economies across the nation.

  • $620 billion is the projected size of the US home improvement market by the end of 2026 (Joint Center for Housing Studies of Harvard University, 2026).
  • 4.2% is the expected annual growth rate for the home improvement market from 2023 to 2028 (Grand View Research, 2025).
  • $12,500 is the average amount US homeowners spent on home improvements in 2025 (Houzz & Home Report, 2025).
  • 78% of homeowners completed at least one home improvement project in the past year (Lowe's Home Trends Report, 2025).
  • $2,300 is the average cost savings homeowners report by doing DIY projects instead of hiring a professional (Angi Services, 2025). This figure can really add up over time.
  • 80% of contractors report increased project backlogs compared to last year (National Association of Home Builders, 2026). This means you'll likely wait longer for a pro.

Consumer Behavior and Project Trends

Understanding how homeowners approach their projects and what drives their decisions is essential. From budget allocation to project selection, these statistics highlight key behavioral patterns. You'll see which projects are most popular and why.

  • 30% of homeowners prioritize energy efficiency upgrades, such as improved insulation or smart thermostats (ENERGY STAR, 2026). Learn more about how to get started with a beginners guide to home insulation.
  • 60% of renovation budgets are allocated to interior projects, with kitchens and bathrooms leading the way (Remodeling Magazine, 2026).
  • 15% increase in DIY activity was observed among homeowners under 40 in 2025, driven by online tutorials and cost savings (Home Depot Consumer Survey, 2025).
  • 65% of homeowners use social media platforms for home improvement inspiration and ideas (Pinterest Home Report, 2025).
  • 20% of homeowners report delaying projects due to rising material costs (Fannie Mae National Housing Survey, 2026). It's a real factor.
  • 45% of homeowners consider smart home technology installations a priority for their upcoming projects (Parks Associates, 2025).
  • $4,500 is the average spent on outdoor living space improvements, like decks or patios (NALP Industry Report, 2025).

Return on Investment (ROI) and Value

Home improvements aren't just about aesthetics; they're also about increasing property value. Knowing which projects offer the best return on investment can guide your decisions, ensuring your money works harder for you. Some projects certainly pay off more than others.

  • 75% is the average ROI for a minor kitchen remodel (Remodeling Magazine's Cost vs. Value Report, 2026). This makes it a smart investment.
  • 60% is the average ROI for a mid-range bathroom remodel (Remodeling Magazine's Cost vs. Value Report, 2026).
  • 80% is the average ROI for replacing a garage door (Remodeling Magazine's Cost vs. Value Report, 2026). Surprisingly high, isn't it?
  • 15% increase in home value can be attributed to smart home technology integrations in certain markets (Coldwell Banker Real Estate, 2025).
  • 3.5% of homes sold in 2025 featured solar panel installations, up from 2.8% in 2024 (National Association of Realtors, 2026).

Emerging Trends and Future Outlook 2026

The home improvement landscape is always changing. New technologies, environmental concerns, and shifting demographics constantly reshape what homeowners prioritize. You'll find that sustainability and smart solutions are becoming more important.

  • 50% of new home improvement product launches in 2025 focused on sustainable or eco-friendly materials (Green Builder Media, 2025).
  • 25% of homeowners are interested in investing in home battery storage systems in the next three years (Edison Electric Institute, 2026).
  • 10% of home improvement spending is now directed towards professional smart home installation services (CEDIA, 2025). This is a growing segment.
  • 37% of homeowners aged 25-34 plan to undertake a major renovation (over $25,000) in the next two years (Bank of America Homebuyer Insights Report, 2025).
  • 18% of homeowners are incorporating basic electrical wiring upgrades for EV charging stations (Electric Power Research Institute, 2026). This is a practical consideration for many. Check out our guide on basic electrical wiring for more information.

Sources

  • Angi Services. (2025). Homeowner Spending and Saving Report.
  • Bank of America. (2025). Homebuyer Insights Report.
  • CEDIA. (2025). Smart Home Market Report.
  • Coldwell Banker Real Estate. (2025). Smart Home Staging Report.
  • Edison Electric Institute. (2026). Residential Energy Storage Trends.
  • ENERGY STAR. (2026). Annual Report on Home Energy Efficiency.
  • Fannie Mae. (2026). National Housing Survey.
  • Grand View Research. (2025). Home Improvement Market Size, Share & Trends Analysis Report.
  • Green Builder Media. (2025). Sustainable Building Product Survey.
  • Home Depot. (2025). Consumer Home Improvement Survey.
  • Houzz. (2025). Houzz & Home Report: Renovation Trends.
  • Joint Center for Housing Studies of Harvard University. (2026). The Remodeling Futures Program.
  • Lowe's. (2025). Home Trends Report.
  • National Association of Home Builders. (2026). Remodeling Market Index.
  • National Association of Realtors. (2026). Home Buyers and Sellers Profile.
  • NALP (National Association of Landscape Professionals). (2025). Industry Economic Report.
  • Parks Associates. (2025). Smart Home and Security Market Report.
  • Pinterest. (2025). Home Decor & Renovation Trends.
  • Remodeling Magazine. (2026). Cost vs. Value Report.

FAQ

What's the average return on investment for a bathroom remodel in 2026?

A mid-range bathroom remodel currently offers an average return on investment (ROI) of about 60-65% nationally. Projects like minor kitchen updates and new siding often see higher returns, sometimes reaching 75% or more, according to Remodeling Magazine's 2026 Cost vs. Value Report. It's a solid investment, but not always the highest.

Which home improvement projects are most popular with Gen Z homeowners?

Gen Z homeowners are focusing on smart home technology integration and energy efficiency upgrades. They're investing in smart thermostats, LED lighting conversions, and low-flow fixtures. These projects often cost less upfront but offer long-term savings and increased home value, which is important to this demographic.

How much do homeowners typically spend on outdoor living space improvements?

Homeowners are spending an average of $4,500 on outdoor living space improvements, such as new decks, patios, or landscaping projects. This figure has seen a steady increase over the past two years, with a 12% rise in spending compared to 2024, as reported by the NALP Industry Report in 2025.