US Home Improvement Consumer Insights

Report Overview

Discover Data-Driven Analysis of the Who, Why, & How Behind Home Renovations

Key Themes Covered in this report:

• Lifestyle changes, economic conditions, and technological advancements that are shaping the way we renovate our homes
• The rise of the DIY culture and why many still prefer the DIFM approach
• Homeownership rates, buying patterns, demographic trends, and other factors that underlie trends within the home improvement industry
• Design priorities that impact improvement choices

Featuring 56 tables and 18 figures

Home improvement activity is an important aspect of the construction and building supplies industry, so an investigation into consumer trends can give insight to marketing and product development opportunities. 

Home improvement activities have evolved significantly over time, driven by various factors such as lifestyle changes, economic conditions, and technological advancements. Updating kitchens and bathrooms remains a popular trend, as these renovations can significantly enhance the functionality and value of a home. Adding rooms or expanding living spaces is another common project, often undertaken to accommodate growing families or create dedicated home offices.

The rise of DIY (Do It Yourself) culture has empowered many homeowners to take on projects themselves, thanks to the availability of online tutorials, affordable tools, and a desire for personal satisfaction. However, the DIFM (Do It For Me) approach also remains strong, with many opting for professional services to ensure quality and save time, or to undertake more complex renovation projects.

Power tools have become more accessible and user-friendly, encouraging more people to engage in home improvement tasks. The pandemic saw a surge in home improvement activities as people spent more time at home and sought to create comfortable and functional living environments. Post-pandemic, while some have returned to their pre-pandemic routines, the trend of investing in home improvements continues, driven by a desire to enhance living spaces and adapt to new lifestyle needs

This report contains analysis and data-based discussions of various pieces of the home improvement industry, including a look at homeownership rates, buying patterns, demographic trends, and other consumer insights. 

This report includes analysis, data, trends, and customized cross tabs using two survey resources: 

• data from The Freedonia Group’s proprietary national online survey conducted May 2020, August 2021, February 2022, May 2022, August 2022, February-March 2023, September-October 2023, February-March 2024, May 2024, and July-August 2024
• data from syndicated national consumer survey results from MRI-Simmons Fall 2014-2024 Reports

Historical Trends

Between 2014 and 2019, homeownership declined slightly, despite recoveries in the housing market and the general economy since the 2007-2009 recession. Declines in ownership were due to a lagging recovery for many consumers’ budgets as well as high housing prices that proved prohibitive for many households. Additionally, the increased migration to urban areas favored renting over owning.

Between 2019 and 2021, however, homeownership rose and rentals declined as:

• lower mortgage rates increased the affordability of homeownership

• pandemic aid gave consumers unexpected income to move housing

• white-collar workers suddenly free to work from home and no longer factoring in long commutes to an office shifted toward suburbs and exurbs

• urban dwellers (often renters) that were worried about pandemic conditions in a densely populated area purchased homes outside the city

• remote work and remote schooling for many families during the pandemic led more households to look for homes with more space and thus move from smaller rentals to larger owned homes

Homeownership rates ticked down and rentals rose again because:

• higher mortgage rates reduced the affordability of homeownership

• corporate mandates to return to offices have reduced or eliminated that worker flexibility about where they live

• limited availability of purchasable housing elevated the demand for and cost of rentals

Relocation Trends

Of respondents to the July-August 2024 edition of The Freedonia Group National Online Consumer Survey, 15% reported changing where they lived in the past 12 months. This trend is well below those noted in previous recent surveys, particularly those in August 2021, February 2022, and February-March 2023 when about a quarter of the surveyed population reported moving within the past year. This decreasing mobility has been the result of a number of factors, including:

• high mortgage interest rates that have enticed homeowners to stay where they are with their locked-in lower interest rate mortgages

• lack of available housing stock limiting the ability of households that are considering moving from finding what they are looking for at an affordable price in the location they need

• high prices for home buying and renting keeping households in their current housing situations rather than upgrading

Overall, there are notable demographic differences in rates of changing homes.

• Mobility rates are highest among those who are most likely to live in rental housing, including younger consumers and those who live in urban areas. Rising rental rates were driving more renters to reconsider where they lived, if another more affordable option was available.

• Those least likely to move are those most likely to own their home, including older consumers and those who live in the Northeast or Midwest and in suburban and rural areas. There is a high level of cost and time involved in moving among homeowning consumers, as they must sell a house and buy a new one, and current mortgage rates are higher than many being held by existing homeowners.

Home Improvement Consumer Insights Report Details