HIRI US Size of the Home Improvement Products Market

2.5% growth projected for 2025, revised down from 3.4% due to macroeconomic headwinds.

The home improvement market is still growing, but more slowly than anticipated. HIRI has revised its 2025 forecast to 2.5% growth—down from 3.4% in June.

HIRI US Size of the Home Improvement Products Market

Consumer: +1.3% | Pro: +4.6% — professionals continue to lead growth.

While the consumer home improvement market is expected to grow just 1.3% in 2025, the professional market remains more resilient with a projected 4.6% increase.

HIRI US Size of the Home Improvement Products Market

Core CPI: 3.1% | General CPI: 2.7% — inflation and tariffs are squeezing pricing.

Section 232 tariffs and sustained inflation are pushing prices higher. CPI is expected to hit 3% by late 2025 as businesses pass costs to customers.

HIRI US Size of the Home Improvement Products Market

Housing starts down 5.3% in Q2 2025, lowest in five years.

Homeowners are staying put. With housing starts down 5.3% and existing home sales down 2.7%, mobility is at a five-year low—affecting renovation triggers.

HIRI US Size of the Home Improvement Products Market

Top growth categories: Lawn & garden, nursery stock, tools, plumbing, and hardware.

Looking ahead, lawn and garden equipment, nursery products, tools, hardware, and plumbing supplies are expected to lead in market share and growth.

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.

Fast Facts