A recent study by the strategic consulting and market research firm; BlueWeave Consulting revealed that the United States home improvement market is expected to grow at a CAGR of 5.7% during the forecast period (2022-2028). This is attributable to the rapidly increasing disposable income among the population and the increasing demand for better and more convenient amenities among homeowners. Population growth, employment growth, urbanization, domestic and international migration, and the innovative products the company offers are some of the key factors in this market driving demand for home improvement. In addition, the increase in the development of the housing improvement market with a combination of factors such as lower lending rates and higher real estate costs boosts the growth of the U.S. home improvement Market.
Changing homeowners’ preferences coupled with Government Tax Credits to drive the Market Growth
Changes in homeowners’ preferences for energy-efficient and luxurious living spaces have contributed significantly to the expansion of the industry. Rapid urbanization and government initiatives to provide incentives and tax credits for green building construction have boosted the market growth. In addition, the importance of e-commerce and the availability of technologically advanced system upgrades drive home remodeling activities. The increase in the development of the Home Improvement market is a combination of factors such as lower lending rates and higher real estate costs. The integrated home control system enhances convenience, accessibility, and security, giving users complete access to their homes from a single-touch panel system. Increasing demand for integrated home control systems is rapidly expanding market growth.
Outdoor living products Accounted for the Largest Market Share In 2021 By Product
On the basis of product, the United States home improvement market is segmented into building and remodeling, home décor, outdoor living, tools, and hardware. The outdoor living segment is expected to lead the Home Improvement market during the forecast period. Due to its ability to withstand a variety of climatic conditions, the demand for outdoor furniture is increasing. Outdoor furniture is designed to withstand high temperatures and humidity, bringing new styles and decorations to outdoor living spaces. The full utilization of garden furniture in outdoor gardens and terraces where the outdoor living space is aesthetically pleasing is driving the demand for these products. In addition, the development of outdoor furniture made of upholstery products, teak wood, eucalyptus, and high-quality metal has created high demand in the market. Increasing barbecues and social gatherings are other factors in procuring visually appealing outdoor furniture. Rapid population growth and the thriving housing construction sector in the United States will be major drivers of market growth. Of these, the painting sub-segment is expected to grow from USD 145.8 billion in 2021 to over USD 237.5 billion by 2030, the fastest-growing market.
Impact of COVID-19 on the United States Home Improvement Market
In 2020 the U.S. economy shrank 3.5%, but spending on improvements and repairs increased by more than 3% to nearly USD 420 billion as house owners modified their homes for work, school, and leisure. Many professional remodeling projects have stopped due to a pandemic, but DIY refurbishment has skyrocketed. The sudden flexibility of working from home has also increased the demand for larger homes and gardens in the country’s low-cost, low-population areas. The unexpected power of the Home Improvement market has made 2020 the 10th consecutive year of expansion for the industry, but the pandemic has confused some long-term trends. From 2010 to 2019, homeowners relied primarily on professional contractors and remodeling activities were concentrated in coastal metropolitan areas. But in 2020, DIY projects became more popular again, and remodeling activities shifted to lower-cost metros.
United States Home Improvement Market – Regional Insights
By States, the United States home improvement market is segmented into Oklahoma, Louisiana, Georgia, Hawaii, North Carolina, Nevada, Tennessee, Texas, Washington, Illinois, Rest of States. Among all, Oklahoma has the highest share of the United States home improvement market. The U.S. Home Improvement industry is the 7th retailer in terms of market size and the 51st largest retailer in the United States. The market size of the U.S. Home Improvement industry has grown at an average annual rate of 5.3% between 2017 and 2022, and by the end of 2022 expected growth rate is 1.5%.
The U.S. home improvement market is highly fragmented due to many local and international suppliers. Key Players operating in the United States Home Improvement Market are ABC Supply Co., Inc., ACE Hardware Corporation, Andersen Corporation, APCO Industries, Ferguson Enterprises, Floor & Decor Holdings Inc., JELD-WEN, Kohler Company, Lowe’s Companies, Inc., Lumber, M Company, Masco Corp, Menard, Inc., Pella Corporation, The Home Depot U.S.A., Inc., The Sherwin-Williams Co, True Value Company. The key marketing strategies adopted by the players are facility expansion, product diversification, alliances, collaborations, partnerships, and acquisition to expand their customer reach and gain a competitive edge in the overall market.
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