United States Residential Remodeling Market Size and Forecast 2025–2033

The United States Residential Remodeling Market is entering a new era of expansion, shaped by shifting homeowner priorities, sustainability goals, and long-term housing trends. According to Renub Research, the market is projected to reach US$ 804.02 billion by 2033, rising from US$ 531.34 billion in 2024, representing a CAGR of 4.71% from 2025 to 2033.

As modernization, energy efficiency, and comfort become central to the American lifestyle, the remodeling sector is positioned to remain one of the most resilient and dynamic components of the U.S. construction economy.

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United States Residential Remodeling Industry Overview

The residential remodeling industry plays a crucial role in shaping America’s housing landscape. From kitchen makeovers to structural reinforcements, the market comprises home improvement, maintenance, repair, and aesthetic renovation activities across single-family and multi-family housing units.

Today’s homeowners demand:

Modernized living spaces

Higher energy efficiency

Better utilization of old home layouts

Enhanced property values

Smart technology integrations

This demand is amplified by the aging housing stock, rising disposable incomes, and a growing preference for improving existing homes instead of purchasing new ones. Approximately half of American homes were built before 1980—naturally creating high demand for upgrades, replacements, and retrofits.

Furthermore, digital innovations such as 3D modeling, virtual design consultations, and online remodeling marketplaces have transformed how homeowners interact with contractors. This tech-enabled approach has made renovation projects more transparent, faster, and better tailored to individual preferences.

Sustainability has also emerged as a major market accelerant. Environmental consciousness, energy-efficiency standards, and incentives for green improvements have encouraged homeowners to invest in smart thermostats, solar systems, and eco-friendly building materials.

Despite macroeconomic fluctuations, the remodeling industry maintains strong fundamentals due to its adaptability and the essential nature of home maintenance. Remote work trends, equity-driven renovation financing, and rising homeownership in suburban regions are further propelling market growth.

Key Factors Driving U.S. Residential Remodeling Market Growth

1. Aging Housing Stock and Urgent Maintenance Needs

A dominant force behind market expansion is the old age of American homes. Millions of structures require:

Roof replacements

Electrical and plumbing upgrades

Energy-efficient windows and insulation

Structural repairs

Layout modernization

As homes age, the cost of deferred maintenance rises, compelling homeowners to remodel for safety, comfort, and compliance with energy codes. Federal and state incentives for energy-efficient modifications—such as tax credits for solar panels and heat pumps—further fuel renovation activities.

2. Rising Homeowner Equity and Increased Spending Power

Home price appreciation over the past decade has created record-high homeowner equity. This increased financial cushion is encouraging Americans to invest in renovations rather than move, especially amid tight housing inventory.

Popular investment-driven upgrades include:

Kitchen redesigns

Bathroom expansions

Outdoor living enhancements

Smart home installations

Additionally, flexible financing tools—like home equity lines of credit and renovation loans—are making remodeling more accessible to middle-income families.

3. Sustainability and Energy Efficiency at the Core

Energy-efficient and eco-friendly remodeling is becoming mainstream because it delivers:

Lower energy bills

Higher home resale value

Reduced carbon footprint

Homeowners now prioritize:

Solar power systems

Smart thermostats

LED lighting

Low-emission materials

Sustainable flooring

Efficient HVAC systems

Millennials and first-time homebuyers, in particular, value green renovations as part of a conscious lifestyle. Government incentives further accelerate adoption, making this a long-term growth pillar of the market.

Challenges Impacting the U.S. Residential Remodeling Market

1. Skilled Labor Shortages

The U.S. construction labor shortage remains one of the industry's biggest barriers. Retiring tradespeople and declining enrollment in vocational programs have left contractors understaffed.

This results in:

Longer project timelines

Increased labor costs

Higher project quotations

Reduced contractor capacity during peak season

Addressing this challenge will require significant investment in training, apprenticeships, and workforce development initiatives.

2. Material Cost Volatility and Supply Chain Pressures

Fluctuations in the prices of key materials—such as lumber, steel, concrete, and high-efficiency components—continue to impact project budgets. Persistent supply chain disruptions have resulted in:

Longer lead times

Price inflation

Need for alternative materials

Uncertain project scheduling

Although manufacturers and contractors are improving inventory management and local sourcing, volatility remains a hindrance for remodeling activities across the states.

United States Residential Remodeling Market Overview by States

California

California remains one of the largest remodeling markets due to:

High property values

Strict environmental regulations

Aging housing stock

Demand for modern layouts

Remodeling trends include:

Solar installations

Eco-friendly materials

Fire-resistant upgrades

Earthquake-resilient construction

Outdoor living enhancements

Cities like Los Angeles, San Francisco, and San Diego show strong demand for contemporary designs and high-tech home improvements.

Texas

Texas’ remodeling market is fueled by:

Rapid population growth

Urban expansion

Rising household incomes

Affordable housing

Popular upgrades include kitchen and bathroom remodeling, insulation improvements, and outdoor living projects. Texas’ diverse climate also drives demand for roofing, HVAC upgrades, and weather-resistant materials.

New York

New York’s remodeling market is shaped by urban density, high-rise buildings, and a large inventory of older homes. Homeowners prioritize:

Space optimization

Smart technology

Energy efficiency

Home office additions

Historic properties require specialized renovation skills, creating niche opportunities for contractors.

Florida

Florida is experiencing rapid remodeling growth due to:

Population migration

Strong real estate activity

Storm-proofing requirements

High demand exists for:

Hurricane-resistant roofing

Structural reinforcements

Energy-efficient windows

Pool and patio upgrades

Retirees and second-home buyers significantly contribute to Florida’s luxury renovation segment.

Recent Developments in the U.S. Remodeling Industry

Lowe’s Acquisition of Artisan Design Group (April 2025):

Lowe’s strengthened its professional services portfolio by purchasing ADG, enhancing its capabilities in flooring and interior finish installations across residential markets.

Home Depot’s Acquisition of SRS Distribution (June 2024):

This move expanded Home Depot’s reach into roofing, landscaping, and pool supply distribution, reinforcing its dominance among professional contractors handling specialty trades.

Market Segmentations

Application

Flooring

Walls

Ceilings

Porch, Garden & Garage

System & Equipment

Disaster Repair

Other

Service Type

Full-Remodeling Service Providers

Specialized Service Providers

States Covered

California, Texas, New York, Florida, Illinois, Pennsylvania, Ohio, Georgia,

New Jersey, Washington, North Carolina, Massachusetts, Virginia, Michigan,

Maryland, Colorado, Tennessee, Indiana, Arizona, Minnesota, Wisconsin,

Missouri, Connecticut, South Carolina, Oregon, Louisiana, Alabama, Kentucky,

and Rest of the United States.

Key Players Covered

Kohler Co.

Trex Company

Dow Inc.

Pella Corporation

JELD-WEN

IndustrieCottoPossagno S.p.A

Lutron Electronics Co. Inc.

Boise Cascade Company

Andersen Corporation

Seven Group Holdings Limited

Each includes:

Overview

Key Person

Recent Developments

SWOT Analysis

Revenue Analysis

Final Thoughts

The United States Residential Remodeling Market is expected to maintain strong, steady growth through 2033. Aging homes, shifting lifestyle preferences, environmental consciousness, and rising homeowner equity are all shaping the nation’s renovation landscape.

Even as labor shortages and material price volatility present challenges, innovation, sustainability, and modernization trends continue to propel the industry forward. With homeowners viewing remodeling as a long-term investment in comfort, safety, and value, the sector remains one of the most promising and resilient within America’s broader construction market.