A home provides many of us with a secure place away from the outside world. But a neat, fixed-up, or renovated space is the key to ultimately enhancing the comfort of staying home. This alluring idea of home improvement encourages people to take on remodeling or renovation projects that are usually expensive but ultimately beneficial since it increases their value. In addition, it can lessen the costs of utility and maintenance.
Home improvement statistics show that the trend of investing in houses is stronger than ever.
– Homeowners continue to have a strong desire to remodel in 2022, with 55% of homeowners expecting to
do so this year.
– By the end of 2028, market sales are anticipated to total around USD 514.9 billion, growing at a
CAGR of 6.40%.
– The anticipated median spending increased by 50% from $10,000 in 2018 to $15,000 in 2022.
– With a combined score of 50%, bathroom and kitchen renovations top the list of the most popular indoor
home improvements.
– The highest percentage of cost recovery for exterior projects comes from new roofs and
new garage doors, both at 100%.
– At 116.9%, new fiberglass attic insulation is the only upgrade that will net more money than it costs.
Building supplies, appliances, décor, and other home enhancements are part of the home improvement sector, as are the services provided by builders, installers, contractors, and other professionals. This comprehensive industry is still holding firm, despite supply chain concerns.
The global home improvement market is expanding at a high CAGR due to rapid urbanization, rising disposable income, and changing trends.
Additionally, what adds to the growth is the increasing tendency of younger consumers to remodel their houses to suit their aesthetics better and increase their comfort level.
According to a recent report, the global market for home improvements was valued at USD 333.7 billion in 2021. By the end of 2028, market sales are anticipated to total around USD 514.9 billion, growing at a CAGR of 6.40%.
But what other factors affect the growth of the global home improvement market?
The industry is seeing good growth potential due to the rising use of online channels for purchasing materials and tools for home repair.
Online stores are collaborating with suppliers of materials and services for home repair to provide attractive options like same-day delivery. Additionally, buyers now have access to various things that were previously unavailable or produced very rarely.
The increased incorporation of advanced technologies further fuels the growing demand for home improvement services.
These services are necessary to install sensors and smart devices and provide maintenance, repair, and interior improvements. Hence, additional security is projected to support the growth of the global home renovation industry as smart homes gain appeal among customers.
Between 2017 and 2022, the US Home Improvement Stores market size increased by 5.7% per year.
And, in terms of revenue, the Home Improvement Stores market will be worth $250.6 billion in 2022.
Spending and activity on home improvements are at their highest levels since 2018. In 2021, more than half (55%) of homeowners made renovations, showing a 2% rise from 53% in 2020 and a 1% rise from 54% in 2019 and 2018.
Homeowners continue to have a strong desire to remodel in 2022, with 55% expecting to do so this year.
They anticipate spending more on improvements than they did the year before for the first time since 2018. The anticipated median spending increased by 50% from $10,000 in 2018 to $15,000 in 2022.
In 2022, around half of homeowners intend to decorate, and almost three out of every eight homeowners intend to perform repairs.
Homeowners with more expensive renovations anticipate spending $75,000 in 2022 as opposed to $60,000 in 2021.
Although a home’s return on investment (ROI) is usually taken into account, most homeowners start home improvement projects to enhance their satisfaction with their living space. Other significant contributing considerations include modernization, upgrading, and safety.
With the idea of upgrading the environment and enjoying it more, most homeowners focus on improving certain house rooms. With a combined score of 50%, bathroom and kitchen renovations top the list of the most popular indoor home improvements.
A modern, bright bathroom appeals to most people, so it is also a must-have for real estate agents. 27% of homeowners decide to renovate their bathrooms where the improvement touches usually affect the shower areas, toilets, vanities, and worktops.
Kitchen renovations were the second most popular among homeowners (23%). The kitchen is one of the main components of the interior, and any remodeling project could include replacing cabinet doors, countertops, lighting, flooring, and appliances.
About 2.2 million additional homeowners were added on net from the beginning of 2020 to the first quarter of 2022. So, in spite of the economic struggle in home prices due to the pandemic, the total number of house owners increased to 83.4 million.
A recent study shows that recent homebuyers account for 10% of renovations. They have spent more than the national average, climbing up to $30,000, surpassing short-term and long-term homeowners ($19,000 and $15,000, respectively).
Many homeowners choose to renovate their living space rather than search for a new home, but those who plan to leave their current house look for ways to make investments that add value.
The most significant percentage cost recovered for exterior projects comes from new roofs and new garage doors, both at 100%. Fiber cement siding recovers 86% of its cost, whereas vinyl siding recovers 82%.
Energy-saving solutions pay off.
At 116.9%, new fiberglass attic insulation is the only upgrade that will net more money than it costs.
Buyers value safety enhancements.
Installing a steel entry door returns 91.1% of its cost, while new garage doors return nearly 90%.
Small modifications in the kitchen may have a significant impact.
A small kitchen makeover will recoup around 83% of its cost.
Curb appeal may increase the value of your property by 28%.
A tree sapling costs $10 and can increase the value of your property by $10,000.
The term “renovation” has been on the rise, particularly in 2021, as people begin to recuperate from the pandemic’s difficult start. With the continual surge in interest in renovation, we can assume that home improvements are once again on homeowners’ minds. The trends continue to thrive in 2022, with no indications of a slowdown.
It is common for homeowners to renovate every few years, be it for aesthetics or upkeep. Google trends show that those who show the most interest in renovation ideas are the people of Kansas.
District of Columbia homeowners takes up the second place, followed by Virginia, Connecticut, and Maryland.
The term “home improvement ideas” started slowly at the beginning of 2020 but reached its peak in late 2020. The same situation occurred in 2021 as well. And now, in 2022, it shows that in October, people have slowly started to show more interest in home improvement projects than they did at the beginning of the year.
There are no signs of a slowdown in the home improvement sector. Homeownership will always involve maintenance, renovation, and upgrading as the years go by. The statistics above indicate that homeowners cannot go wrong with any popular home improvements since every little effort will increase the house’s value at resale.