The Home Improvement Research Institute Forecasts Growth in Home Improvement Products Market in 2024
Data from the recently released market forecast indicates a foundation for long-term growth for both consumer and professional markets
INDIANAPOLIS , April 11, 2024 /PRNewswire/ -- The Home Improvement Research Institute, the nation's leading resource for market research concerning the home and building products industry, has forecasted home improvement spending will pick up in 2024 following two years of decelerated growth. 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%. This research was released to HIRI members in March in HIRI's biannual Home Improvement Products Market Forecast.
Economic Indicators
After two years of double-digit growth in the home improvement market, economic pressures slowed category activity from 2022 to 2023. Today, consumer sentiment continues to rise with disposable income and equity gains, which has buoyed consumer spending on home improvement. Additionally, the Federal Reserve is expected to lower interest rates in 2024, which will provide tailwinds for home improvement spending.
"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," said Dave King, executive director at HIRI. "As interest rates decline, we anticipate a return to home sales as the primary motivator for home improvement."
Consumer Market
Real disposable income is projected to grow by 2.8% and real personal consumption expenditures by 2.6% in 2024. 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 further breaks down this forecasted growth by product category.
Top-growing merchandise lines for consumers:
- Soft-surface floor coverings
- Hard-surface floor coverings
- Other building materials
- Paint and preservatives
- Roofing and supplies
These merchandise lines will see compound annual growth rates between 3% and 6% in 2025 through 2028.
Professional Market
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. Due to this rebound, growth in professional market home improvement sales is expected to accelerate faster by 2025 and to average around 6% CAGR in 2027 and 2028.
Top-growing merchandise lines for professionals:
- Lawn and garden equipment and supplies
- Nursery stock and soil treatments
- Tools
- Hardware
- Major household appliances
These merchandise lines will see CAGR between 4% and 5% in 2025 through 2028.
"While there will always be uncertainty in the economy, HIRI's goal is to supply the research needed to help our members make informed decisions," King said.
About the Home Improvement Research Institute
Founded in 1981, HIRI is the leading nonprofit research provider for more than 100 of the biggest names in the home improvement industry. HIRI's mission remains to provide companies of all sizes with actionable resources ranging from raw data to digestible executive summaries to shape business decisions. Join as a member for unlimited access to $1 million worth of industry research. For more information, visit hiri.org.
SOURCE Home Improvement Research Institute (HIRI)
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