When it comes to consumers, the markets for several of the major product categories involved in kitchen remodels are expected to decline in 2023 and 2024, and then rebound from 2025 to 2027. This includes paint and preservatives; plumbing fixtures and supplies; kitchen cabinets and countertops; and doors and molding. On the other hand, the market for hard-surface floor coverings is projected to continue growing among homeowners and DIYers from roughly $7.6 billion in 2023 to $21.6 billion in 2027.
HIRI research shows that, for DIY homeowners, the markets pertaining to bathroom remodeling projects—plumbing fixtures and supplies, as well as bath cabinetry and countertops—are expected to decline in 2023 and 2024, with growth rebounding 2025 through 2027.
From HIRI’s Q2 2023 project activity report, we see 2 quarters of growth following a low in Q4 of 2022. Complementing this equity is historically low unemployment rate and above average wage growth.
HIRI recently released its latest iteration of the U.S. Home Improvement Products Market Forecast, offering valuable insights into the state of the industry and the broader economic landscape. Here's what we know:
Throughout 2022 and 2023, consumer sentiments have been low and the result has been postponement of larger home improvement and remodeling projects. As we look towards 2024, with economic uncertainty easing, home improvement spend is also anticipated to resume.
HIRI has analyzed recent market performance and consumer preferences to get a comprehensive picture of the state of the lumber and building materials market. The wood-based building materials market has experienced both positive and negative performance in recent years, and current HIRI size-of-market research points to a continuation of that pattern. Consider these figures:
From this 10 minute video, you'll get a sense of the current macro-economic environment and how it is impacting homeowner behaviors.
As of findings from March of 2023, the majority of homeowners feel it is a bad time to start a remodeling project over $5000. But, the number of homeowners with positive sentiments towards starting smaller remodeling projects, under $5000, remains high, at 44%. Here's what we're seeing: