2025 Sales Are Not Meeting Expectations, Despite Sound Economic Numbers
From 2015 to 2023, the home improvement industry experienced tremendous growth as the median project spend increased 29%, and the number of home improvement projects in a given year increased from 2.7 to 3.4 per home. However, these trends didn’t continue in 2024 as homeowners throttled back on home improvement spending.
HIRI Infographic: Change in Number of Completed Home Improvement Projects
After a challenging 2024, 2025 was forecasted to be a stronger year in the home improvement sector This year, however, is not meeting expectations, as the homeowner seems to lack urgency, sitting on the sidelines – directly impacting new home sales, existing home sales, and remodeling activity.
According to the National Association of Home Builders, new home sales are down nationally 1.4% year to date through August. And according to the National Association of Realtors, existing home sales in August are flat vs 2024, despite an 11.7% increase in inventory. Additionally, remodeling activity for Q3 2025 is trending near its lowest point since Q1 2020.
These trends are somewhat contrary to the broader economic trends. Even with 30-year mortgage rates holding steady above 6%, the bigger economic picture remains fairly solid. U.S. GDP grew at an annualized rate of 3.8% in Q2 2025, unemployment stayed low at 4.3% in August, and over the past year, wage growth has actually outpaced inflation—all signs that the economy’s holding its own despite higher borrowing costs.
Fielding Research to Identify What Motivates Homeowners to Engage
To better understand how to unlock pent-up home improvement spending, Brunner fielded a survey of 900 US homeowners that were planning or seriously considering a home renovation or maintenance project within the next 12 months. Survey respondents included a mix of generations, household income levels, races and ethnicities, and political parties to capture the diversity of US homeowners.
Results: Momentum Stalls for 1 in 5 Homeowners
The survey showed that 21% of respondents are likely to delay their biggest project. Furthermore, one in three respondents who were likely to delay their project also planned to scale back their project.
Interestingly, income level, and political affiliation had little impact on whether homeowners chose to delay major projects, validating the need for deeper insights to understand why homeowners are delaying projects.
Tap Into Personal Motivations, Not Just External Market Conditions
One finding showed that while external factors like the economy, tariffs, and interest rates play a role, personal motivations are the primary drivers behind decisions to delay their biggest home projects. Furthermore, when we analyzed the reasons why people do not delay their project, personal motivations were the driving force to proceed. Rather than focusing on external factors such as tariffs to promote urgency, brands should focus on inspiring homeowners at a personal level.
For example, YellaWood, the leading brand of pressure-treated pine, connects with homeowners through its Five-Star Backyard campaign. Recognizing the importance of the backyard to homeowners and that it’s the place in the home to connect with family and friends, and relax and entertain, YellaWood positions itself as a partner in creating their own ultimate backyard. Through DIY resources and content, the brand helps empower homeowners to have their own five-star backyard and elevate both their backyard and their lifestyle.
How to Inspire Homeowners to Act
As 2025 continues to thwart expectations, one thing is clear: homeowners are still engaged, just more cautious. By developing a deeper understanding of what truly motivates them, brands can unlock powerful strategies to re-engage stalled homeowners and drive action. To explore the above strategy, and four additional strategies in greater depth and with relevant examples, please join us for HIRI’s upcoming webinar on November 13th or watch it after the fact.
About Brunner
Brunner, a 2025 strategic partner of HIRI and a sponsor of the HIRI Summit, is a leading independent integrated marketing agency that’s proud to have Good People, Creating Great Work for Our Clients. Brunner simplifies the complexities of marketing by leveraging data insights to develop creative solutions for clients’ marketing challenges. Brunner’s client portfolio includes notable national brands like The Home Depot Rental, Great Southern Wood Preserving, Mitsubishi North America, Owens Corning, and Rinnai, among others. Brunner is headquartered in Pittsburgh, PA, with additional offices in Atlanta, GA.
