Hardware Retailing The Industry's Source for Insights and Information
The home improvement products market is predicted to grow in the next few years, despite continued financial strain and cautious consumer confidence. According to the Home Improvement Research Institute’s U.S. Size of the Home Improvement Products Market study, the home improvement market was projected to increase around 2.5% in 2025, with an average annual growth rate from 2026 to 2029 of 4%. The market is forecasted to reach about $688 billion by 2029.
HIRI recently released the State of the Home Improvement Industry Q1 2026 report, detailing where consumers are putting their dollars. In the first quarter, home improvement spending remained at near record levels, with repair and replacement keeping demand steady.
Home improvement spending intentions also held steady in the quarter, with 34% of homeowners planning to spend more on home improvement in the next 12 months. Home improvement spending fell in the middle of necessary and discretionary spending, below essential costs like healthcare and groceries but above vacation and dining expenses.
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