Home Improvement Research Institute Forecasts Growth

The Home Improvement Research Institute forecasted home improvement spending will pick up in 2024 following two years of decelerated growth. Consumer sentiment continues to rise with disposable income and equity gains, which has buoyed consumer spending on home improvement. Additionally, the U.S. Federal Reserve is expected to lower interest rates in 2024, which will provide tailwinds for home improvement spending.

Key takeaways

• The total home improvement products market is expected to climb 2.7% in 2024, with the consumer market growing by 3.3% and the professional market growing by 1.4%.
• HIRI projects consumer market sales will increase 3.3% in 2024 to $392.6 billion and for growth to average 3.1% 2026–2028.
• HIRI forecasts professional market sales will grow at a slower pace than sales among consumers, but still increase 1.4% in 2024.
• Additionally, HIRI projects home sales will pick up 6.3% in 2024 following a decline of 19.3% in 2023. 

“Traditionally, home sales drive spending on home improvement. However, with the high interest rates of recent years, homeowners embraced the ‘locked-in effect,’ choosing to remodel rather than sell,” says Dave King, executive director, HIRI. “As interest rates decline, we anticipate a return to home sales as the primary motivator for home improvement.”