Home Improvement Market Trends and Insights
Thinking about starting a home renovation? You’re in good company. Across the U.S., millions of homeowners are investing in kitchens, bathrooms, outdoor living spaces, and energy-efficient upgrades.
Whether you’re planning a small refresh or a major overhaul, staying informed about home improvement trends can help guide your decisions. At HFS Financial, we’re closely tracking national market shifts, consumer priorities, and project costs to help you plan with confidence.
Home improvement outlook
The forecast for the home improvement market in 2025 is promising. After two years of spending declines, national data now points to modest growth, especially in residential remodeling and repair. According to industry research, a 4% increase in total spending is expected this year—particularly in the second half—fueled by rising home equity and a strong desire among homeowners to personalize and upgrade their spaces.
Another sign of sustained growth? Homeowners are choosing to stay put longer and invest more in making their current homes work better for them. With an average of $406,000 in home equity per household, more people are feeling empowered to take on larger remodeling projects.
Home improvement spending priorities
Where is all that spending going? The answer varies, but data consistently shows that bathrooms and kitchens remain top priorities for homeowners. According to the University of South Alabama, here are the median project costs for popular renovations:
- Bathroom remodels: $15,000
- Kitchen remodels: $24,000
- Roofing replacement: $12,000
- Flooring installation: $3,000
These numbers reflect typical project scopes, offering a more grounded look at what homeowners are actually spending.
Outdoor projects are also on the rise, including pool installations, decks, and covered outdoor kitchens, as families continue to invest in open-air living. And as the DIFM (“do it for me”) trend grows, more homeowners are relying on professionals to handle the work—especially for high-impact upgrades that require expertise.
Home improvement market in 2025
As we look ahead, the 2025 home improvement trends point toward generational shifts in how renovations are planned and financed:
- Millennials (age 28–43) are leading the charge, with a mean expected spend of $5,173 over the next year.
- This group is also the most optimistic about starting both small and large projects and the most active in online research.
- Social media and web searches are key sources of inspiration and planning among this demographic, making it essential for service providers and contractors to meet them online.
At the same time, older homeowners are driving demand for aging-in-place upgrades—think walk-in showers, single-level living, and accessible design elements.
Supply chain backlogs are easing across most product categories, including roofing, flooring, cabinetry, and decking. However, imported materials may see cost increases if tariffs are implemented. These pricing fluctuations highlight the importance of affordable financing options, which can help homeowners manage larger investments.
Financing your next home improvement
Whether you’re remodeling a kitchen, replacing a roof, or transforming your backyard, financing can make your project more accessible. At HFS Financial, we specialize in home improvement loans with flexible terms and fast approvals.
We help customers fund:
No matter the project, smart planning—and the right financing—can help you turn your vision into reality. Contact HFS Financial today and let our experts connect you with competitive home improvement loans that suit your budget.
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