Remodeling Statistics for 2025 and 2026: Home Improvement Data That Matters

The remodeling industry in the United States keeps growing, and the latest data backs that up. These remodeling statistics cover spending trends, homeowner behavior, project ROI, and market forecasts so you can make smarter decisions about your home improvement plans or your contracting business.

How Big Is the Remodeling Market in 2025?

U.S. homeowners spent over $608 billion on renovation and improvement projects in recent years. According to the Joint Center for Housing Studies at Harvard University, annual expenditures for improvements and maintenance to owner-occupied homes grew between 2022 and 2023. Their Remodeling Futures Program tracks the short-term outlook of national home improvement and repair spending through the Leading Indicator of Remodeling Activity (LIRA).

The LIRA pointed to a slight decrease in spending per household during parts of 2024, but the overall renovation market remains strong heading into 2025 and 2026. A combination of economic uncertainty and rising home values has kept many owners invested in their current properties rather than buying new ones.

Spending and Growth in the Remodeling Industry

Improvement spending continues to outpace what many people expect. Owner-occupied properties are expected to grow in renovation activity as housing stock ages across the country. Older buildings need roof replacements, basement repairs, bathroom upgrades, and energy-efficient systems. That ongoing demand fuels steady investment year after year.

Retail sales of building materials also reflect this trend. General contractors report full project pipelines, especially for kitchen and bathroom work. The state of the industry looks solid, even with higher interest rates slowing property sales.

What Motivates Homeowners to Renovate?

Most homeowners renovate to improve their living space without the cost and hassle of moving. Resale value plays a role too. Families want comfort, better functionality, and design trends that fit how they actually live. Outdoor living spaces, dedicated offices, and energy efficiency upgrades top the list of popular renovation projects.

The housing market also pushes people toward renovation instead of relocation. When property sales slow down, owners invest in what they already have. A comprehensive study of the factors influencing the growth and changing characteristics of housing renovation and repair activity in the United States confirms this pattern across multiple income brackets.

Remodeling Industry ROI: Which Projects Pay Off?

Not every project delivers the same return. According to the National Association of Realtors, kitchen renovations and bathroom remodels consistently rank among the highest ROI projects. A minor kitchen remodel can recoup 75% or more of its cost at resale. Garage door replacements and new entry doors also perform well.

Additions tend to cost more upfront but don’t always return a high percentage. Homeowners planning major renovations should weigh household income, local market conditions, and how long they plan to stay before committing to large budgets.

Cost Per Click and Marketing Data for Remodeling Businesses

If you run a contracting business, marketing costs matter just as much as project costs. The average cost per click for Google Search ads in this industry sits around $6.55. In competitive metro areas, clicks for services like kitchen renovation or bathroom upgrades often exceed $10.

Paid campaigns on Google Search convert at roughly 10 percent. With that math, most companies pay about $65 per lead. Contractors who pair strong SEO with well-managed paid ads see the best results over time.

How Improvement Trends Are Shifting

Recent biennial reports describe the evolving needs of households across the U.S. Residential renovations now focus heavily on energy conservation, smart thermostats, and automation technology. Do it yourself projects remain popular for smaller tasks, but property owners increasingly hire professionals for anything structural or electrical.

Design-build firms have grown in demand because they simplify the process. Clients want one point of contact from concept to completion. This shift benefits contractors who offer full-service renovation rather than single-trade work.

Remodeling Statistics Show a Strong Outlook

The renovation market isn’t slowing down. Between aging housing stock, rising equity, and homeowners who’d rather renovate than relocate, spending in 2023, 2024, and 2025 has stayed well above pre-pandemic levels. These remodeling statistics point to continued opportunity for both property owners and contractors who plan carefully and track real data.

FAQs About Remodeling Statistics

What are the statistics for renovations in the United States?

Annual home improvement spending in the United States exceeds $600 billion. The housing studies of Harvard University track these numbers through the Remodeling Futures Program at the Joint Center, which provides a short-term outlook of national home improvement and repair spending to owner-occupied homes.

What is the LIRA and how does it relate to remodeling?

The LIRA (Leading Indicator of Remodeling Activity) is published through a program at the Joint Center for Housing Studies. It forecasts repair activity in the United States and signals where spending is heading over the next several quarters.

What is the average ROI for renovations?

Kitchen and bathroom renovations tend to deliver the strongest ROI, often returning 70% to 80% of the investment at resale. Door replacements and garage upgrades also perform well. The exact percentage depends on local market conditions and construction costs.

How often do US residents renovate their home?

On average, homeowners take on some form of home improvement project every few years. Larger renovation projects like kitchen or bathroom remodels happen less frequently, while maintenance and smaller upgrades occur on an ongoing basis across most owner-occupied properties.