Homeowners Seize Opportunities in Economic Climate to Secure Financing for Home Improvement Ventures

In the dynamic world of home improvement, two giants reign supreme in the US market: The Home Depot and Lowe's. In 2022, The Home Depot led the industry with retail sales amounting to USD 145.94 billion, closely followed by Lowe's Companies, which generated USD 89.28 billion in sales.

The home improvement sector is experiencing a significant surge, with the global market demonstrating a steady growth trajectory at a CAGR of 5.50%. This growth is evident in the smart home market, where 37% of all internet-connected homes now boast at least one smart device. Adoption rates are expected to continue increasing, signalling a bright future for this sector.

New home buyers are investing heavily in renovations, with an average allocation of up to $30,000, more than double the national median. On the other hand, long-term homeowners typically spend $15,000 on renovations. Among homeowners who have completed their projects this year, acquiring products and materials was the second-most common obstacle, at 34%.

One of the most lucrative improvements in interior remodeling projects is refinishing hardwood flooring, with an impressive ROI of 147%. Installing new wood flooring also adds significant value, with an ROI of 118%. Converting a basement into a living area offers an ROI of 86%, making it a popular choice for homeowners.

In exterior remodeling projects, new roofing and garage door replacements have a complete ROI of 100%. Kitchen renovations were the most popular interior upgrade in 2021, commanding the highest budget allocation.

The global home improvement services market revenue reached USD 381.9 billion in 2023, and projections suggest a potential decrease in spending to $15,000 for 2022, although final figures have yet to be released. The market is anticipated to achieve USD 391.38 billion in offline revenue and USD 260.92 billion in online revenue by 2033.

Despite the pandemic, homeowners' enthusiasm for renovations remained undeterred. According to the 2022 Remodeling Impact Report by the NAR, 83% of homeowners had already intended to renovate, irrespective of the pandemic. Among the leading hardware and home improvement retailers in the United States, Lowe's Companies and The Home Depot continue to dominate the market.

However, finding suitable professionals remains the primary obstacle for 45% of homeowners who have completed their projects this year. As the home improvement market continues to grow, it is essential to bridge this gap to ensure a smooth and successful renovation experience for homeowners.

Homeowners Seize Opportunities in Economic Climate to Secure Financing for Home Improvement Ventures