Home improvement and maintenance is an important part of home ownership. However, there are several nuances among homeowners when it comes to what type of projects they do and how much they’re spending in this area on a regular basis. Several factors influence the decisions they make and how they are able to invest in maintenance, renovations and other improvement activities at their residence.

About the Findings

The American Housing Survey, a nationally representative survey by the U.S. Census Bureau and sponsored by the Department of Housing and Urban Development (HUD), tracks national home improvement trends and homeowner behavior. Our researchers at The Farnsworth Group partnered with the Home Improvement Research Institute (HIRI) to analyze the data and deliver key insights, which you can download here.

In 2025, we are releasing findings tied to four primary objectives from our analysis. The first two are currently available:

• Objective 1 (Q1 2025): Understand the frequency, type, and average spending on home improvement projects based on demographics such as income, age, and family size.
• Objective 2 (Q2 2025): Understand how the age and condition of U.S. homes influence the nature and scope of improvement projects.

Two more reports will follow in Q3 and Q4, exploring the link between home improvement activity and market conditions, along with homeowner financing methods.

Our analysis goes beyond surface trends to reveal shifts in spending by income, generational project preferences, and the growing demand for professional installation. These insights help manufacturers, retailers, and professionals better align with homeowner needs.

‍

‍

What are the Driving Forces Behind Home Improvement Spending?

As demonstrated in the 2025 American Housing Survey, demographics - including income, race/ethnicity, generation and marital status - impact home improvement spending trends in numerous ways. Here are some of the insights gleaned from our analysis of the survey and their implications for the home improvement industry:

1. Income is the Strongest Predictor of Remodeling Behavior

Home improvement spending is predominantly driven by income, with higher-income households investing significantly more in remodeling projects, and also completing more projects per household on a yearly basis. The top 20% of income earners account for approximately 50% of all spending. On average, households making $200K or more spend upward of $10,000 annually on home improvement activities, while the second-highest income group (those making $100K to $200K) spend half as much. More than 80% of total project dollars go to professionals, with DIY projects limited to lower-cost, easier tasks like security systems, landscaping, and plumbing fixture replacements.

‍

2. Generational Shifts are Transforming the Spending Landscape

Millennials and Gen X are now taking over a larger share of remodel spending, becoming two critical segments of the market. Meanwhile, the Baby Boomers’ share continues decreasing, a decline that started in 2015. On average, both Millennials and Gen X households spend a little more than $5,000 on projects each year. Millennials also conduct the most projects annually, followed by Gen Z homeowners. The Silent Generation not only conducts the fewest projects, on average, but also has the lowest annual spend on home improvement activities. As the buying power transfers to the younger generations, manufacturers and suppliers will want to consider adapting their marketing strategies—and potentially product development—to appeal to these up-and-coming homeowners.

3. Home Value and Size Shape Both Scope and Scale of Home Improvement Projects

Home improvement investments increase with home value, size of home, and number of bedrooms. Larger and more expensive homes drive a disproportionate share of total dollars. Higher-value homes account for fewer projects, but maintain higher project costs. They have a larger share of spend going towards large-scale remodels and additions. By contrast, lower-value and smaller homes prioritize lower-cost improvements, often cosmetic or maintenance driven. When it comes to size, larger homes that are more than 2,500 sq. ft. and have 4+ bedrooms lead in cost per project.

‍

4. Housing Age Still Matters but Not as Much as Cost Burdens

Owners of homes built before 2010 spend $1,100 more on average than those with newer homes. Homes built between 1950 and 1979 account for the largest share of the current housing stock in the U.S., as well as the largest share of home improvement spending. They also account for the most projects across all types, from interior finishes and plumbing fixtures to electrical and heating. Homes built between 2010 and 2025 only command an 8% share of the spending. Homeowners in newer units invest a much larger portion on lot and yard improvements compared to their older counterparts. However, while housing age plays a role in how homeowners invest in improvements, the top predictors of spend remains to be income, monthly housing costs, and home value.

5. Safety and Neighborhood Quality are Subtle but Important Influencers

Households in "very safe" or highly-rated neighborhoods are more likely to invest in improvements. Those in “very safe” neighborhoods spend an average of $5,062 each year compared to the average of $3,132 spent annually by those in neighborhoods designated as “not at all safe.” We see similar trends when it comes to the overall quality rating of a neighborhood and the quality of the living unit itself. This data suggests that homeowners’ confidence in the long-term value of their home strongly influences their remodeling decisions. There may be opportunities for home improvement product brands to target homeowners in these neighborhoods with marketing and promotions to influence their decisions when purchasing products and supplies for their projects.

6. Project Type Preferences Reflect Socio-economic Conditions

Higher earners favor high-investment renovations, such as kitchen makeovers, additions and expansions, and HVAC improvements. Lower earners prioritize maintenance and essential upgrades to extend the livability and longevity of their residence. Among home improvement and remodeling projects, interior and exterior additions/replacements account for the largest share of home improvement spending, or about 29%, while disaster repairs (fire, flood, tornado) are among the most expensive projects. The survey data also shows that owners of lower-value homes (those under $150K) spend a much higher share of their value on improvements, often exceeding 6%, revealing a pressure to upgrade despite limited resources and lower equity return.

7. The Remodel Market Reflects Broader Economic Inequality

Regardless of generation, marital status, or race/ethnicity, income remains the primary driver of home improvement spending. Households with significantly higher incomes than their counterparts have the funds available to invest more frequently, and in higher quantities, into improving and remodeling their home. The gap in spending highlights unequal access to home equity, professional services, and quality upgrades—influencing who can afford to improve, and how. While higher-income households can contribute more easily to protecting one of their greatest assets, their residential property, and even making desired additions and upgrades, lower-income households are more often completing maintenance projects and small renovations.

Accessing Valuable Data and Insights for Your Home Improvement Brand

The Farnsworth Group specializes in providing insights through primary research for the building products and home improvement categories. Our team distills complex datasets into strategic insights that are unique to your nuanced business case. To explore how market intelligence can inform your business strategy, schedule a consultation with our team.

‍

If you're looking for secondary research on home improvement, you should become a member of The Home Improvement Research Institute (HIRI), who we partnered with on the analysis. HIRI members receive access to exclusive reports like this one, which combine trusted data sources with industry-focused analysis. Join HIRI to gain access to a full library of research that helps shape the future of home improvement.