The U.S. residential remodeling market, valued at approximately $527.36 billion in 2023, is expected to expand at a compound annual growth rate (CAGR) of 4.6% through 2030. This growth is driven by rising homeowner demand for aesthetically appealing and technologically advanced interiors and exteriors. Increased disposable income and the popularity of home automation and smart appliances are also contributing to this trend. Contractors should note the growing emphasis on integrating smart systems and advanced materials, as well as the heightened demand for specialized services, such as concrete and masonry or mechanical and plumbing upgrades.
Specialized service providers currently dominate the market, accounting for 81.8% of revenue, with projected growth to $582.41 billion by 2030. The systems and equipment segment, focusing on home automation and energy efficiency, is particularly robust. In contrast, the full-remodeling service sector, while also significant, offers integrated solutions across design, engineering, and construction. California remains a key market due to its high income levels and demand for remodeling, while Texas shows increasing growth due to the cost-effectiveness of remodeling compared to new construction. For residential contractors, adapting to these trends—particularly in smart technology and specialized services—will be crucial for capturing market opportunities and staying competitive.
