2025 Home Improvement Project Trends

The home improvement market continues to show long-term resilience as project activity stabilizes from recent highs. While overall spending has moderated, homeowner engagement, especially for mid- to large-scale projects, remains strong and above historical norms, based on findings in the Home Improvement Research Institute's biennial Project Decision Study.

Home improvement participation skews toward long-term, single-family homeowners, with distinct profiles by project type. Exterior projects reflect maintenance among older, tenured owners, while interior and major renovations concentrate among higher income, higher equity households pursuing discretionary upgrades.

Although they are done the least frequently, major renovations carry the highest project spend, while other categories cluster at more moderate and consistent investment levels. Maintenance is the main driver for a majority of exterior projects, or about two-thirds. Interior work reflects comfort and aesthetics, while energy efficiency defines mechanical investments.

The Home Improvement Research Institute's 2025 Project Decision Study covers 47 project categories, with a focus on projects $5k and above. These projects are broken into five overarching categories: Exterior Envelope, Interior Finish, Major Renovations, Mechanical Systems, and Yard, Garden and Outdoors.

HIRI offers detailed reports on each of these five project areas, zeroing in on wide range of specific projects, including windows, decks, exterior and interior doors, flooring, kitchen and bath renovations, interior and exterior painting, garage remodels, accessory dwelling unit (ADU) additions, whole home remodels, electrical wiring, energy management, septic systems, HVAC, solar panels and storage, home automation and security, driveway, fencing, outdoor lighting, walkways, retaining walls, patios, and more.

This data-rich report is helpful in analyzing medium- to large-sized home improvement project activity completed in the last 12 months, including total spending and financing methods, as well as looking ahead to upcoming plans for various home improvement projects. You may also find value in analyzing this information alongside HIRI's most current Quarterly Home Improvement Activity Tracker results. 

Homeowners report strong satisfaction, modest delays, limited regrets, and solid expected resale recovery, especially for kitchens, baths, and other interior remodels. Spending is elevated for bathroom projects, because of the scope and complexity, according to the Home Improvement Research Institute's biennial Project Decision Study.

For bathroom renovations, almost two-thirds of project costs go toward labor and only a third go toward materials and products for the project. In terms of homeowners' buying patterns for bathroom renovations, the products most frequently purchased for these projects include finished plumbing, flooring, interior paint, and cabinets. A majority, or roughly two-thirds, of bathroom renovations are paid for with cash, while less than one-fifth are paid for with credit cards. 

Both kitchen and bathroom renovations are top types of interior home improvements. According to the Home Improvement Research Institute's 2025 Project Decision Study, homeowners are slightly more likely to renovate their kitchen, at least when it comes to larger projects. Among large interior projects, kitchen renovations have the highest rate of being completed using a combination of DIY labor and paid contractors. The main drivers of kitchen renovations include improving aesthetics/style, improving comfort/livability, increasing home value, and increasing functionality. Energy efficiency also plays a larger role in influencing kitchen renovations than most interior projects. 

Some of the most common home improvement projects for new homeowners include interior/exterior painting, flooring replacements, landscaping, and other cosmetic upgrades. However, there are variations based on the age and state of the residence and what the new homeowners are looking for.

The Home Improvement Research Institute's 2025 Project Decision Study is an in-depth look at how homeowners plan, fund, and execute home improvement projects. The report covers 47 project categories, with a focus on projects $5,000-plus, providing insight on completion methods, homeowner satisfaction, motivations, and factors influencing project delays, as well as the key influences and resources used in selecting and managing projects, professionals, and materials, as well as product purchasing channels used.