More than half of U.S. homeowners, precisely 54%, undertook renovation projects in 2025, according to HBS Dealer. This widespread engagement confirms a deep and persistent commitment to improving existing properties. Individuals are actively investing in enhancing their living spaces, rather than solely seeking new construction. This scale of activity demonstrates a significant and ongoing dedication to property value and personal comfort across the nation.
Overall private residential construction spending saw a slight decline in early 2026. However, consumer intent for home renovations and long-term market growth projections remain overwhelmingly positive. This creates a tension between the broader housing market's short-term fluctuations and the unwavering commitment homeowners exhibit towards improving their current residences. While new construction faces headwinds, the appetite for home improvements appears robust.
The home renovation market is set for sustained expansion, fueled by homeowner investment and professional expertise, even as new construction navigates economic challenges. This divergence means the renovation sector is decoupling from traditional residential construction metrics, establishing its own resilient growth trajectory driven by distinct market forces.
A Market in Motion: The Scale of Renovation
- USD 2,049.25 billion — The global home renovation market size was valued at this amount in 2025, according to Fortune Business Insights.
- Steady — Home renovation activity remained steady in 2025, according to HBS Dealer.
- 32.12% — North America held this market share in the global home renovation market in 2025, according to Fortune Business Insights.
The global home renovation market, valued at over two trillion U.S. dollars in 2025, stands as a major economic force. North America's substantial share, nearly a third of global activity, proves its strong regional presence and sustained investment. Consistent activity in 2025 establishes a solid foundation for future growth. This shows homeowner commitment is not a fleeting trend, but a consistent aspect of the housing economy.
Navigating the Nuances of Spending Trends
| Metric | January 2026 Change | Year-over-Year Change |
|---|---|---|
| Improvement Spending (Remodeling) | Declined 1.4% | Rose 12.5% |
| Private Residential Construction Spending | Declined 0.8% | N/A |
| Single-Family Construction Spending | N/A | Down 5.8% |
Source: Eye On Housing
These figures reveal a nuanced market. Remodeling spending shows robust year-over-year growth despite a short-term monthly dip and broader declines in new home construction. Private residential construction spending fell 0.8% in January 2026. Single-family construction spending was down 5.8% year-over-year, according to Eye On Housing. This contrasts sharply with improvement spending, which, despite a 1.4% decline in January 2026, rose significantly by 12.5% year-over-year. The divergence means homeowners increasingly invest in improving current homes rather than seeking new builds. Factors like high interest rates or limited housing stock likely contribute. Companies focused on new home builds are missing the true growth engine of the housing market: existing home renovations.
Unwavering Consumer Confidence Fuels Growth
More than nine in ten surveyed homeowners will move forward with planned renovation projects in 2026, according to Kitchen & Bath Design News. This overwhelming intent confirms a powerful underlying demand. It defies minor economic fluctuations, even the short-term decline in improvement spending reported by Eye On Housing. Homeowners view renovations as essential investments, not discretionary spending easily deferred by market shifts.
Of those planning to remodel, 67% will keep or expand their project scope as originally planned, according to Kitchen & Bath Design News. The 67% of homeowners planning to remodel who will keep or expand their project scope shows strong resolve among homeowners. Initial project visions are not being scaled back. Such steadfastness in project scope directly contributes to higher value per project, driving the overall growth of the renovation market. This consumer behavior provides a solid foundation for the global market's projected expansion, proving current homeowner activity is a reliable indicator of future market strength.
Professionals Lead the Way in a Growing Market
The Professional segment is projected to dominate the market with a 78.51% share in 2026, according to Fortune Business Insights. The Professional segment's projected 78.51% market share confirms that complex, larger-scale projects requiring expert execution drive market value and growth. Homeowners increasingly turn to skilled trades and specialized services for their renovation needs, moving beyond simple DIY projects.
This reliance on professionals, coupled with homeowners' intent to maintain or expand project scope, means the renovation market is shifting towards complex, high-value projects. Skilled trades and specialized services become both a critical bottleneck and a significant opportunity for future growth. The demand for qualified contractors, designers, and specialized technicians will likely intensify, creating substantial opportunities for businesses within the professional remodeling sector. This trend also points to a higher average project cost, contributing to the overall expansion of market value.
The Path Forward: Sustained Investment in Existing Homes
The home renovation sector proves a remarkably resilient investment, largely insulated from the volatility impacting broader residential construction.
- More than nine in ten homeowners committed to 2026 renovation plans, according to Kitchen & Bath Design News.
- The global home renovation market is projected to grow to USD 3,026.50 billion by 2034, according to Fortune Business Insights.
- The global home renovation market is expected to exhibit a CAGR of 4.61% from 2026 to 2034, according to Fortune Business Insights.
These robust long-term projections confirm the home renovation sector is on a sustained growth path. It is driven by enduring consumer demand and professional expertise. The market's projected growth to over $3 trillion by 2034 demonstrates its resilience. This expansion is fueled by the consistent high rate of homeowner renovation activity, providing a solid foundation for future market strength. Sustained investment in existing homes reflects changing homeowner priorities: improving current properties takes precedence over new construction. This trend positions professional remodeling services as a key beneficiary of this long-term market expansion.
Based on current trends, the home renovation market will likely continue its robust expansion, driven by unwavering homeowner commitment and a growing reliance on professional expertise, even if broader residential construction faces ongoing challenges.
