U.S. Residential Remodeling Market Growth & Trends
The U.S. residential remodeling market size is anticipated to reach USD 716.18 billion by 2030, registering a CAGR of 4.6% from 2024 to 2030, according to a new report by Grand View Research, Inc. Growing demand for products such as ceilings, outdoor decks, flooring, bathrooms, and kitchens that are aesthetically pleasing, cost-effective, and eco-friendly has increased in home renovation projects. Increasing disposable income of homeowners has also contributed to this trend in recent years and is expected to contribute to market growth in the coming years.
Manufacturers of remodeling products have incorporated their presence throughout the value chain to disassemble existing structures and install new products. These companies offer services that are based on analysis of an existing structure and search for a solution that will rebuild the structure according to the customer’s needs. For example, companies such as Jenks Restorations consider the damage to a building as a result of natural disasters, fire, or water and adapt repairs and rebuild work accordingly.
The threat of substitutes is low to medium in the U.S. residential market as most players have different ranges of specialized offerings. The nature of the industry forces consumers to choose from local players, which are considerably limited due to the high cost of establishing of network.
Cement, lumber, plastic, aluminum, copper, and steel are just a few of the raw materials used in the home remodeling industry. According to various studies, the prices of raw materials do not show a constant upward or downward trend, making it difficult for manufacturers and buyers to make long-term decisions regarding raw material procurement and product selection. Products such as steel and lumber have seen an increase in prices due to disruption in supply chain and transportation, leading to shortages. Socioeconomic problems such as the Russia-Ukraine war have also affected the availability and movement of raw materials.
Rising prices of housing and property have led to increased renovation works on existing houses as the spending levels of the population has grown in recent years. This has given a boost to the residential remodeling market. Shifting focus toward aesthetically pleasing interiors and exteriors of the house has led to remodeling projects in various households. The interest in incorporating smart equipment in homes has also helped in increasing the need for remodeling houses.
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U.S. Residential Remodeling Market Report
U.S. Residential Remodeling Market Report Highlights
- The residential remodeling market has experienced a surge in recent years as the energy efficiency of residential buildings has increased, resulting in lower energy bills. The increasing real estate rates have also caused consumers to remodel their homes instead of purchasing new ones. In addition, the growing emphasis on interior and exterior design has also contributed to the growth of the residential remodeling industry
- The specialized service provider segment dominated the market with a revenue share of 81.8% in 2023. Specialized service providers specialize in one or more of the following services, such as concrete and masonry, electrical & insulation, mechanical systems, plumbing systems, roofing, and siding. Specialized service providers ensure that high-quality and durable materials are used while remodeling any part of the building
- The remodeling of residential systems and equipment accounted for the largest market share of 26.5% in 2023. This growth is attributed to the growing number of people using consumer electronics in their homes in the U.S. This has resulted in the need for modernized systems in the United States that help to level out electrical connections in homes
- California residential remodeling segment accounted for a revenue share of 13.8% of the overall market in 2023. The market in California is expected to grow as it is among the largest states in the U.S. economy, in terms of GDP, construction activities, and per capita income of the population. Moreover, the increase in disposable income primarily drives the demand for residential remodeling in the U.S.
- Most of the market players focus on forward integration by offering maintenance services in addition to manufacturing services. They also focus on offering customization services through online portals and in-house staff as well as utilizing both online and offline distribution channels to interact with their customers
- In November 2023, a Groundworks Company acquired Texas-based Eco-Soil Stabilizers, which offers residential customers and homebuilders a proprietary soil stabilization injection technology. Thus, A Groundworks Company aims to leverage this technology to enhance foundation repairs of residential buildings across the U.S.
