As we step from 2024 into 2025, the home improvement industry continues to evolve.
Lifestyle changes are at the forefront of decision-making, swaying homeowners in their choice of what and where to spend their improvement budgets. They are motivated by technological advancements and growing environmental concern, with sustainability still very top-of-mind.
Here are the top trends that are shaping the industry:
1. Home Remodeling Instead of Moving
61% of Americans would rather renovate than move.
Thanks to a challenging housing market, homeowners are currently pouring more money into renovations.
Making their house into the home they envision, with intentional spaces and unique touches. Spending their money to increase the functionality in their home.
2. Small Home Projects are On the Rise
About two-thirds of homeowners feel it’s a bad time to start a home improvement project that costs more than $5,000. 70% of homeowners in 2024 feel that it is a “good time” to start a home improvement project under $5,000.
Homeowners are taking inflation and the excessive cost of living into consideration, along with their personal finances. Economic uncertainty is making them less willing to take on large projects, and more apt to take on smaller, less expensive renovations.
3. Renovations Focused on Intentional and Unique Spaces
The greatest motivation for undertaking home improvement projects in the past 12 months was “to better enjoy” a home. These types of projects lead to an average spending of $7,000 to $10,000.
There is a movement towards wellness and enhanced quality of living through renovations. Some examples include adding natural light, saunas, or cold plunge pools.
Unique details, making the home feel one-of-a-kind, have become increasingly important. Remodeling details such as handmade tiles or installing custom built-ins.
4. Kitchens are Still the Most Renovated Room in the Home
Kitchens continue to lead as the most commonly renovated interior room at 29%.
Homeowners are still choosing to remodel their kitchens, a space that is commonly known for adding value to a home and ensuring the highest ROI. The current trends include custom islands, butler pantries, and distinctive changes that create those individualized (but highly functional and intentional) spaces.
Incorporating Sustainability with features such as reclaimed wood for cabinetry and flooring, recycled glass countertops, and bamboo or cork flooring options.
The average kitchen remodel cost in 2024 is between $25,000 and $150,000.
5. Smart Home Technology Surge
Smart home technology features are becoming increasingly popular, especially among the new wave of millennial homeowners.
78% of potential home buyers would pay extra for a smart home. Making it a great renovation option for someone looking to increase their ROI.
The most popular smart home features include voice control, smart appliances, and smart lights.
46% of consumers adopt smart home technology for convenience, with the second most popular reason for using smart home tech was the ability to monitor the home while away.
Around 3 in 5 US consumers are projected to adopt smart home technology by 2025.
6. The DIY Home Improvement Era
DIY home improvement remains a popular trend in 2024:
75% homeowners attempt some sort of DIY project.
62% percent of Americans say a top reason for attempting a DIY project is to save money.
American DIYers typically have spent from $2,000 to $5,000 on their largest DIY project.
43% of DIYers use YouTube as a source of information for their project.
The appeal of DIY is driven by factors like rising housing costs, remote work, and a desire for personalization. It is more common for younger generations to choose DIY when renovating, rather than older generations.
7. The Rising Trend of Aging-in-Place
Two-thirds of homeowners (66%) address special needs during their bathroom remodels.
A noticeable trend of including functional (but also aesthetic) touches to a renovation to ensure mobility and accessibility for aging within the space.
Some examples include shower bars in a trendy finish, curbless showers, or non-slip flooring options.
When remodels are fueled by an emotionally charged motivation, the spending limits tend to hold higher budgets.
8. Remodeling Outdoor Spaces
70% of professionals say an updated outdoor living space has a big impact on home value.
There are small fixes, such as a new door, which can have a large impact on curb appeal. Entry door replacement has an average cost of $2,355 and an ROI above 188%.
Many outdoor projects boast the highest ROI, some examples being the addition of a deck, updated siding, or garage door replacement.
9. Sustainability is a Priority for Homeowners
Homeowners are increasingly seeking ways to reduce their environmental impact and create more energy-efficient living spaces.
Did you know that 61% of homeowners prioritize energy efficiency when making home improvements?
Driven by a growing awareness of climate change and a desire to conserve valuable and limited resources, homeowners are making a shift towards greater sustainability through their renovations. As a result, there has been a surge in demand for eco-friendly building materials like bamboo, recycled steel, and reclaimed wood.
Likewise, homeowners are investing in energy-efficient appliances, solar panels, and smart home technology to reduce their carbon footprint and lower utility bills.
Conclusion
As you can see, there are a lot of exciting home improvement industry trends that we are seeing heading into 2025.
Homeowners and new movers are looking for ways to increase the value of their homes and customize their living spaces. They are considering things like function, sustainability, longevity, and unique touches when choosing where to spend their renovation budget.
Need to reach homeowners and new movers? Learn how our data can help.
