Home Remodeling Market Report 2026

The home remodeling market size has grown steadily in recent years. It will grow from $997.52 billion in 2025 to $1.04 trillion in 2026 at a compound annual growth rate (CAGR) of 4.9%. The growth in the historic period can be attributed to growing emphasis on basic home repairs, rising residential renovation activities, increased availability of do-it-yourself tools and materials, expansion of home improvement retail channels, reliance on traditional construction products.

The home remodeling market size is expected to see strong growth in the next few years. It will grow to $1.29 trillion in 2030 at a compound annual growth rate (CAGR) of 5.4%. The growth in the forecast period can be attributed to increasing demand for sustainable remodeling materials, rising adoption of smart home renovation solutions, growth in professional home renovation services, expansion of online remodeling product distribution, development of modern modular and prefabricated remodeling components. Major trends in the forecast period include growing demand for kitchen and bathroom upgrades, rising popularity of diy home improvement projects, increased focus on floor and roof renovations, expansion of professional home renovation and difm services, higher adoption of modern windows, doors, and wall remodeling solutions.

The anticipated growth in the construction sector is set to drive the expansion of the home remodeling market in the future. As a pivotal industry encompassing various activities related to building and infrastructure development, the construction sector spans residential and commercial building projects, as well as the creation of infrastructure such as highways, bridges, airports, and public transportation systems. With the growth of the construction sector, there is an increased demand for housing, fostering a more competitive housing market. Consequently, homeowners may opt to renovate their existing homes instead of pursuing new acquisitions. Additionally, advancements in technology and materials within the construction sector may pique homeowners' interest in upgrading their homes. For example, in August 2023, the U.S. Census Bureau reported a 3.7% increase in privately owned residential housing completions, reaching 1,406,000 housing units compared to 1,355,000 in August 2022. Thus, the upswing in the construction sector is a catalyst for the home remodeling market's growth.

Leading companies in the home remodeling market are focusing on technological innovations, such as technology-enabled home remodeling services, to provide a faster, easier, and more convenient remodeling experience. Technology-enabled home remodeling services involve renovation and improvement solutions that utilize advanced technologies to enhance different aspects of the remodeling process. For example, in October 2023, West Shore Home, a US-based construction company, introduced advanced technology to transform the home remodeling experience. The solution integrates AI-driven project planning, 3D visualization tools, and smart device compatibility, allowing homeowners to visualize renovations before construction begins, optimize material usage, and track project progress remotely. Key features include predictive cost analysis, energy efficiency recommendations, and a user-friendly interface that simplifies complex remodeling tasks. The platform can be applied to kitchen, bathroom, and full-home renovation projects, offering homeowners greater control, transparency, and efficiency compared with traditional remodeling methods.

In March 2025, Azure Capital International LLC, a US-based private equity firm, acquired S&E Renovations, Inc. for an undisclosed amount. Through this acquisition, Azure Capital International LLC aims to expand its portfolio in the residential remodeling sector, strengthen its presence in the Southeast U.S. market, leverage S&E Renovations, Inc.’s expertise and established reputation, and drive operational growth across its renovation and professional services businesses. S&E Renovations, Inc., based in the US, is a custom residential remodeling company specializing in transforming homes through quality craftsmanship and personalized service.

Major companies operating in the home remodeling market are Andersen Corporation, JELD-WEN Holdings Inc., Kohler Co., Pella Corporation, The Home Depot Inc., Dow Inc., Kajaria Ceramics Limited, Lutron Electronics Company, Mohawk Industries Inc., Masco Corporation, Industry Cotto Possagno S.p.A, Seven Group Holdings Limited (Boral Limited), Harvey Industries Inc., Neil Kelly Company, Case Design, ABC Supply Co., Atlas Roofing Corporation, AZEK Building Products Inc., Beacon Roofing Supply Inc., Builders FirstSource Inc., CertainTeed Corporation, Cornerstone Building Brands, CRH plc, Daltile Corporation, Delta Faucet Company, D.R. Horton Inc., Johns Manville Corporation, Ferguson Enterprises LLC, GAF Materials Corporation, Georgia-Pacific LLC, James Hardie Industries plc, Lennar Corporation, Lowe's Companies Inc., Owens Corning, Ply Gem Holdings Inc., Pool Corporation, Power Home Remodeling Group.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on imported construction materials, fixtures, flooring, and electrical components are increasing overall remodeling costs, particularly affecting kitchen, bathroom, flooring, and window renovation segments across North America and Europe. These tariffs disrupt supply chains, delay contractor timelines, and elevate price volatility for both DIY and DIFM projects. However, they also encourage domestic manufacturing, support local supplier ecosystems, and promote innovation in cost-efficient remodeling materials and products. While short-term project affordability is impacted, tariffs ultimately strengthen regional production capabilities in the home remodeling sector.

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Home remodeling constitutes the process of enhancing or refurbishing an existing residential structure that may be deteriorated, outdated, or no longer fulfilling the homeowner's requirements. It entails the creation of something new.

The primary categories of home remodeling encompass do-it-yourself (DIY) and do-it-for-me (DIFM). DIFM remodeling, an abbreviation for "Do-It-For-Me" remodeling, denotes home improvement projects executed by professional contractors or service providers rather than the homeowners themselves. These products are distributed through both online and offline channels and find applications in various areas, including windows and doors, kitchen and bathroom, floor and roof, walls, and other sectors within end-use industries such as residential and commercial.North America was the largest region in the home remodeling market in 2025. The regions covered in the home remodeling market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the home remodeling market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The home remodeling market includes revenues earned by entities by providing services such as constructing, renovating, painting, plumbing and electrifying changes to an existing home's structure, design, or function. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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