Quarterly Contractor Business Sentiment Tracker

Projects over $100K dropped to a five-quarter low, while $1K–$5K jobs gained ground.

Contractor activity remained stable in Q2 2025, but smaller-scale jobs under $5K made up a growing share – while $100K+ projects hit a five-quarter low.

Quarterly Contractor Business Sentiment Tracker

43% of contractors report labor availability challenges this quarter.

Contractors continue to cite labor availability and cost as top workforce challenges in Q2 2025, while concerns over quality, training, and retention remained steady or declined.

Quarterly Contractor Business Sentiment Tracker

Just 50% of contractors expect growth – down from last quarter and 2024 levels.

Only about half of contractors expect market growth in the next 12 months, signaling softening optimism amid economic pressures.

Quarterly Contractor Business Sentiment Tracker

Nearly 1 in 2 contractors cite competitive bids as their top challenge.

Competitive bids have overtaken materials cost uncertainty as the biggest bidding challenge contractors face today.

Quarterly Contractor Business Sentiment Tracker

Outdoor-focused product purchases climbed in Q2 as exterior project demand rose.

Contractors reported higher purchasing of exterior materials in Q2 – including landscaping supplies, grills & firepits, and exterior paint – pointing to seasonal demand shifts.

Analysis of the American Housing Survey

Top 20% of earners = 50% of spend. Bottom 40% = just 15%.

The top 20% of earners drive half of all home improvement spending, while the bottom 40% contribute just 15%, revealing a sharp spending divide by income.

Analysis of the American Housing Survey

39% vs. 22%: Boomers still dominate home improvement spend, but Millennials are closing in.

Millennials now account for nearly a quarter of home improvement spending. Boomers continue to lead the market with a 39% share.

Analysis of the American Housing Survey

More than race, ethnicity, or marital status – income predicts how much homeowners spend.

Income is the most reliable predictor of home improvement spending – outweighing generation, ethnicity, or marital status.

Analysis of the American Housing Survey

The Top Types of Projects Going To Pros

Homeowners leave HVAC and roofing to the pros, directing most home improvement dollars toward contracted work, while handling simpler projects like faucet replacements themselves.

Analysis of the American Housing Survey

High impact, high spend: Roofing, HVAC, and flooring dominate project volume.

Roofing, HVAC, and flooring are high-volume, high-value project types, with roofing and kitchen remodels leading the market in overall spend.

HIRI US Size of the Home Improvement Products Market

Total market growth of 3.5% in 2026 projected.

In 2026, the consumer segment of the home improvement market is forecasted to grow by 3.9%, outpacing the professional segment, which is projected to grow by 2.7% for a total forecasted market growth of 3.5% in 2026.

HIRI US Size of the Home Improvement Products Market

$688B by 2029: Consumer spending drives two-thirds of home improvement market.

The home improvement market is forecasted to reach approximately $688 billion by 2029, with the consumer market comprising about two-thirds of this total, emphasizing the significant role of consumer spending in the industry's growth.

HIRI US Size of the Home Improvement Products Market

+2.7% in 2024 → +1.6% projected disposable income growth in 2025

Real disposable income per household increased by approximately 2.7% in 2024, with a more modest 1.6% increase projected for 2025, and with slightly higher growth in disposable income projected from 2026 to 2029, suggesting a cautious but positive outlook for consumer spending on home improvements.

HIRI US Size of the Home Improvement Products Market

$574.3B in 2024 → Projected $593.8B in 2025: Growth continues in home improvement market.

The home improvement market grew 3.7% in 2024 and is projected to grow 3.4% in 2025, despite economic uncertainties.

Home Improvement Quarterly Project Activity Tracker

Nearly 3 in 5 homeowners are currently prioritizing essential maintenance or repairs over big upgrades.

Project planning held steady in Q1, with homeowners continuing to prioritize maintenance and repairs—reflecting a pragmatic, ‘wait and see’ approach to bigger investments.

Fast Facts