Home remodeling is an exciting yet costly endeavor that many homeowners undertake to upgrade and customize their living spaces. As a homeowner myself, I understand the questions and data that are useful when deciding on and planning remodeling projects.
In this comprehensive guide, I‘ll provide insights into home improvement industry trends, costs, and statistics to assist you in making informed remodeling decisions. Having the right information can save you time, money, and headaches throughout the process.
Let‘s start by looking at the key stats and facts on home renovations.
Contents
Key Home Remodeling Statistics in 2024
- About 80% of houses in the United States are at least 20 years old, therefore they require home improvements and remodeling.
- In 2018, kitchen remodeling costs came to an average of $14,000.
- Over 50% of homes in the United States were built prior to 1980.
- In 2018, sales from United States hardware stores amounted to $49.7 billion.
- Home Depot took in about $97.3 billion in revenue sales in 2018.
- Do-It-Yourself lumberyards across the United States amassed revenues of $103.6 billion in 2019.
- Married couples are more likely to make home improvements than single people.
- 21.1% of worker deaths in the private sector happened in construction venues in 2018.
- Between 2010 and 2013, large remodeling businesses saw revenue growth of about 5.2%.
- Home improvement in the global market was valued at over $800 billion in 2018.
Let‘s explore what these statistics mean for homeowners.
Detailed Analysis of Home Remodeling Stats
Many factors drive the need for and spending on home renovations each year. By looking at the data and trends, we can gain insights into this major industry.
Aging Housing Stock Requires Updates
With about 80% of homes at least 20 years old, and over 50% built before 1980, America‘s housing inventory is aging. My own home was built in the 1970s, so I understand the need to update electrical, plumbing, flooring, fixtures, and more over time. Key upgrades allow older homes to meet today‘s standards and preferences.
Data shows that in 2018, homeowners spent over $14,000 on average for kitchen remodels and about $10,000 on bathroom renovations. These major re-dos allow worn and dated kitchens and baths to be fully updated.
Demographic Trends Influence Projects
Home improvement stats reveal that in 2018, Gen X and Baby Boomer homeowners accounted for 81% of remodeling projects and spending. With higher incomes and equity, these groups have greater ability to take on renovations.
Younger Millennials made up 14% of projects, spending around $10,000 on median. Very few Gen Z homeowners were remodeling, likely due to budget constraints as first-time homebuyers.
Analyzing demographic data helps the industry identify and meet the needs of their key customers.
DIY Remodels Are Common
An estimated 34% of home remodeling projects in 2013 were DIY efforts taken on by homeowners under age 35. This shows younger homeowners‘ willingness to tackle renovations themselves, likely motivated by budget limitations.
By comparison, homeowners over age 55 completed just 14% of DIY remodels that year. Their higher incomes allow hiring contractors but perhaps less comfort with doing their own work.
These stats demonstrate the impact age and resources have on DIY versus contracted projects.
Industry Revenues Growing
The home improvement industry saw steady growth from 2010-2018, as evidenced by the rise of major national chains. Home Depot revenue hit $97.3 billion in 2018. And DIY lumberyards collectively generated over $103 billion in 2019.
Demand has proven strong across economic cycles. With housing activity still increasing post-pandemic, industry sales are projected to continue rising.
Safety is an Ongoing Concern
The data highlights that construction consistently accounts for over 20% of U.S. workplace fatalities each year. Risks like electrocution, falls, and being struck or caught in equipment contribute to hundreds of contractor deaths annually.
Strict safety protocols are essential for injury and hazard prevention in remodeling projects, both DIY and professional jobs. No renovation is worth a serious accident.
U.S. Home Improvement Spending
Now let‘s examine what homeowners are investing into remodeling projects nationwide.
| Type of Spending | Amount | Year |
|---|---|---|
| Total home remodeling market | $300 billion | 2015 |
| Global home improvement market | $800 billion | 2018 |
| U.S. DIY home improvement sales | $407 billion | 2019 |
| U.S. home remodeling spending | $192 billion | 2013 |
| Average kitchen remodel | $14,000 | 2018 |
| Average bathroom remodel | $10,000 | 2018 |
| Average U.S. homeowner remodeling spend | $7,560 | 2018 |
| Average U.S. maintenance and repair | $1,105 (maintenance) $416 (emergency) |
2018 |
Several clear trends emerge from the data:
- Home remodeling is a multi-billion dollar industry globally and in the U.S. This reflects homeowners‘ ongoing investments into improving their living spaces.
- Kitchen and bathroom remodels are leading spending categories, as these important spaces require periodic upgrades.
- U.S. homeowners are spending thousands of dollars annually on renovations and home repairs. This benefits home improvement retailers and contractors.
- Maintenance costs like HVAC repairs and appliance replacements are routine annual expenses for most homeowners.
Analyzing spending statistics arms homeowners with realistic budgets and expectations when planning renovations.
Popular Home Improvement Projects
Kitchen and bath overhauls are consistently the top remodeling projects each year. But many other renovations provide beauty, functionality, and convenience.
Here are the most common home renovation projects:
- Kitchen remodel – 81%
- Bathroom remodel – 80%
- Whole-house remodel – 53%
- Room additions – 45%
- Door and window replacements – 36%
- Basement remodel – 27%
- Deck additions or refinishing – 25%
- Master bathroom addition – 24%
- Roof replacement – 23%
- Porch additions – 23%
- Siding replacement – 19%
- Second story additions – 16%
- Garage additions – 12%
- Historic renovation – 9%
- Attic conversion – 7%
This overview shows the diversity in remodeling projects homeowners take on. Cosmetic upgrades like siding and porch additions increase curb appeal. While expansions like room, garage and second story additions increase home size and functionality.
No two homes or homeowners are alike. Analyzing these popular projects provides ideas to consider for your own home upgrades.
Cost Data for Common Home Renovations
To budget and plan your remodeling priorities, it‘s important to know approximate costs. Here are average price points for some of the most popular renovation projects:
| Project | Average Cost |
|---|---|
| Kitchen remodel | $14,000 |
| Bathroom remodel | $10,000 |
| Master bath addition | $25,000 to $60,000 |
| Back deck addition | $4,000 to $10,000 |
| New roof | $7,000 to $14,000 |
| New siding | $8,000 to $15,000 |
| Garage addition | $35,000 to $60,000 |
| Basement remodel | $30,000 to $70,000 |
Prices vary based on factors like location, size, materials, and home customization. But this data provides reasonable cost expectations if budgeting for renovations.
Comparing the costs of different projects can help you prioritize the home upgrades offering the best return on investment.
Home Remodeling Return on Investment
Speaking of ROI, certain renovations have higher potential to recoup costs when selling your home. Others may provide more personal satisfaction than financial return.
Here are remodeling projects with strong ROI potential:
- Minor kitchen update – ROI of 65%
- Major kitchen renovation – ROI of 62%
- Bathroom update – ROI of 60%
- New wood deck – ROI of 67%
- Garage addition – ROI of 64%
- Attic conversion to living area – ROI of 77%
With a major kitchen remodel costing around $14,000 on average, homeowners could recoup about $8,680 on sale based on the 62% ROI.
Understanding ROI data allows you to make strategic renovations if aiming to increase home value. Though personal design tastes should drive decisions too.
Conclusion
I hope this detailed analysis provides a comprehensive overview of home remodeling industry data, costs, trends, and considerations for any remodeling project. The key is using statistics and projections to make informed plans and decisions for your unique situation and goals.
Home upgrades require substantial investments of time, effort and money. But approaching them armed with the right information can lead to an outcome you‘ll enjoy for years to come. Let me know if you need any clarification or have additional questions as you explore remodeling your space!
FAQs
How much do renovations increase home value?
Major remodels like kitchen and bath overhauls can increase value by over 60%, while minor renovations may boost value closer to 65% to 70%. Overall, remodeling projects have the potential to recoup over half their cost in increased equity.
What are signs you need a home remodel?
Indicators include outdated or worn finishes like flooring or cabinets, appliances or systems needing repair or replacement, moisture damage or leaks, and rooms feeling small or compartmentalized. Home layouts can also fall short of aligning with changed lifestyle needs.
Should I remodel before selling my house?
Renovations completed right before listing rarely recoup their full cost. Focus on renovations that update worn items and have mass appeal. Avoid highly customized finishes. Consult local realtors to identify priority projects with the highest ROI in your market.
What are the current home remodeling trends?
Popular current trends include outdoor living spaces like kitchens and patios, smart home technology, mixed design styles, eco-friendly and sustainable materials, and creating flexible spaces adaptable to remote work or kids‘ learning.
Sources
- Architectural Digest
- Bob Vila
- Build Review
- CEPro
- Consumer Reports
- Eye on Housing Magazine
- Forbes
- Global Market Insights
- HousingWire
- JCHS
- Motley Fool
- Statista
- OSHA
- Courier Newsroom
- Genworth Financial
- HomeAdvisor
- Investopedia
- NASDAQ
- NerdWallet
- Real Estate Witch
