Value of homeowner renovation expenditure in the U.S. 2015-2022 with a 2023 forecast

Remodeling expenditure in the United States amounted to 418 billion U.S. dollars in the third quarter of 2022 and is set to reach 445 billion U.S. dollars by the third quarter of 2023. This upward trend has been in place since 2015 but is expected to slow down in 2023.

Why do homeowners invest in home improvement?

Homeowners undertake home improvement projects for a variety of reasons, such as to increase value before sale, to improve the energy efficiency of their home, or to repair and upgrade their newly purchased, but older home. In 2019, Gen Z and Millennial home sellers were much more likely to make home improvements before selling than their older counterparts. Approximately one quarter of homeowners who renovated in 2020 did so because they wanted to customize a recently bought house.

How are they financing these projects?

In 2020, most homeowners funded their renovations with cash from their savings, whereas three percent used an unsecured loan to do so. This indicates that home improvements are important enough for many Americans to prioritize saving for such projects.