Hardware Retailing The Industry's Source for Insights and Information
The Home Improvement Research Institute announced the findings from its latest U.S. Size of the Home Improvement Products Market report, including a revised downward forecast for market growth in 2025 due to continued macroeconomic challenges.
The total home improvement market is now projected to grow by 2.5% in 2025, a reduction from the 3.4% growth projected in HIRI’s June outlook. The forecast also revealed consumer market sales are now expected to grow to 1.3%, revised down from 2.6% in June, and professional market sales are expected to increase by 4.6% in 2025.
“Although consumer purchasing power may be shrinking in the short term, research on homeowner sentiment and intent shows that there is still an underlying appetite and demand for home improvement projects,” says Dave King, executive director of HIRI. “Businesses need to consider how they show up to meet homeowners where they are during less flexible financial times. Consider highlighting good/better product lines rather than better/best options, because homeowners will be making tradeoffs in order to bring projects to life.”
Multiple factors have impacted the revised outlook, including elevated material costs, low housing mobility and elevated interest rates.
Despite any near-term uncertainty, the home improvement products market is projected to grow 4.0% from 2025-2029, with the lawn and garden equipment and supplies, nursery stock and soil treatments, hardware, tools and plumbing supplies categories leading the way in terms of market share and growth.
