U.S. home improvement spending and renovation trends

Recent data highlights significant shifts in the U.S. home improvement and renovation market. In 2023, Americans spent a total of $609 billion on home improvements and repairs, with $510 billion dedicated to owner-occupied homes and $99 billion toward rental properties. Of the spending on owner-occupied homes, $405 billion was used for upgrades or changes, while $105 billion went toward maintenance and repairs. Adjusted for inflation, spending in this sector increased by 27% between 2019 and 2023.

Projections suggest continued activity, with the National Association of Home Builders estimating household remodeling spending reached $670 billion in 2024. Annual spending on owner-occupied home improvements is projected to reach approximately $519 billion by the second quarter of 2027, though year-over-year growth is expected to slow to 0.5% by that time.

In terms of design trends, architects and designers are moving away from certain popular concepts. There is a shift from default open floor plans toward layouts that incorporate thoughtful boundaries and purposeful separation. Additionally, designers are moving away from the pursuit of maximum ceiling heights in favor of more scaled-back, intentional ceiling designs.