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The Growing Home Improvement Market: Stats & Trends for Modern Homeowners

Home remodeling sketches with a hammer on top of it

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Are you wondering which home improvement projects offer the best return? Which trends are worth investing in, and which ones to skip? The home improvement industry has grown dramatically over the past decade, and with the unique housing market (especially here in Wisconsin), understanding what’s happening can help homeowners make smarter decisions about their homes.

We’re here to steer you in the right direction with the latest data on housing market growth, spending trends, and what’s specifically driving demand right here in southeastern Wisconsin.

Home Improvement is a Multi-Billion Dollar Industry – And Still Growing

The home improvement industry in the U.S. has been on a steady rise for over a decade. After a brief stagnant period, the market has resumed its upward trajectory, and the numbers are significant:

A chart showing home improvement market size

Globally, the home improvement market is estimated at roughly $828-830 billion in 2025, with projections saying it could exceed $1.2 trillion by the mid-2030s. This growth is driven by a combination of factors.

What’s Driving the Home Improvement Boom?

The remodeling sector is poised for significant growth, and several key factors are fueling the expansion:

  • Aging housing stock: Older homes require ongoing updates and appliance or foundation replacements
  • Record home equity: Homeowners have more financial leverage to fund large projects
  • Energy efficiency upgrades: Rising utility costs and sustainability goals are pushing HVAC, insulation, window, and solar upgrades
  • Locked-in housing market: High mortgage rates are keeping people in their current homes longer, driving renovation instead of relocation
  • Work-from-home schedules: Continued remote and hybrid work has increased focus on home offices, basements, and multifunctional rooms
  • Favorable homeowner demographics: A large wave of mid-life homeowners is at peak renovation age

How Much Are Homeowners Spending on Home Improvements?

Homeowner intent is at a high point. A 2024 analysis found that 62% of American homeowners planned a renovation or remodeling project within the next couple of years. This reflects a substantial jump in the past year, reflecting real momentum in the market.

When it comes to project budgets, there is a general breakdown of median renovation spend by project type:

  • Kitchen renovations: ~$24,000 median spend
  • Primary bathroom renovations: ~$15,000 median spend
  • Roofing: ~$12,000 median spend
  • Over half of homeowners spent at least $25,000 on renovations in 2023
  • A growing share of homeowners plan to exceed $15,000 on individual projects

One important note for anyone budgeting a renovation project: around 40% of homeowners who set a renovation budget end up going over it — often due to underestimating cabinetry, finishes, and change orders.

Planning a realistic contingency from the start is one of the most valuable things you can do before breaking ground. Or you can leave the work to a knowledgeable home improvement company who can handle your project end-to-end.

DIY vs. Hiring a Professional

In addition to home improvement trends, the pandemic sparked a DIY boom, but the trend has since shifted back toward professional help for anything complex. Here’s how homeowners are splitting their approach:

  • Nearly 6 in 10 DIYers plan to spend under 5K on upcoming projects
  • Over 70% of homeowners who hire professionals expect to exceed 5K
  • Pro-grade tools and materials are seeing increased sales as homeowners recognize the limits of DIY on larger, system-level work

The smart approach most homeowners are landing on: handle smaller cosmetic updates yourself, and bring in JJB Home Improvements for structural, system-level, or high-complexity work like kitchens, bathrooms, roofing, and HVAC. That is exactly the blend the market is trending toward:

A chart displaying home renovation planning

However, you should understand the Costly Mistake Homeowners Make (And How to Aovid It) if you do decide to give home projects a try.

Top Home Renovation Trends for 2026

1. Sustainability & Energy Efficiency

Homeowners are getting into sustainability and energy efficiency upgrades in their own ways:

  • Eco-friendly materials like bamboo flooring, recycled metal accents, and low-VOC paints are in high demand
  • Solar panels and energy-efficient windows are becoming standard for reducing utility costs and boosting home value
  • Insulation upgrades and high-efficiency HVAC systems are especially critical for Midwest homes facing extreme seasonal temperatures
  • Better heating systems and roofing are seeing higher median spends as owners prioritize comfort, resilience, and long-term savings

2. Smart Home Integration

“Alexa, turn on the house lights.”

  • Automated lighting, smart thermostats, and advanced security systems are becoming standard in modern renovations
  • Voice-activated assistants and remote (app-based) monitoring are now expected features in higher-end remodels
  • Discreet technology like hidden TVs, integrated speakers, and concealed smart-home controls, is trending for a cleaner aesthetic

3. Kitchen & Bathroom Considerations

Kitchen and bathroom remodels continue to be priority projects for homeowners. Modern kitchen designs emphasize clean lines, open shelving, and intelligent storage solutions that maximize space:

  • English-style kitchens with rich woods, historical colors, and natural stone countertops are gaining momentum in 2025 design forecasts
  • Open shelving, built-in storage, and smart appliances are trending in modern kitchen design
  • Spa-like bathrooms with heated floors and high-end fixtures are especially appealing for Midwest winters
  • Quartz countertops remain a top choice for durability as natural stone is growing as premium alternatives

Before and after photos of a kitchen remodeling project

Kitchen, Dining Room, and Living Room Renovation in Brookfield done by JJB Home Improvements

4. Interior Design Shifts

Homeowners (Midwesterners in particular) are embracing practical space maximization and more expressive paint choices as a key renovation strategy:

  • Warm, classic interiors are having a moment with rich woods, layered lighting, built-in nooks, and natural materials
  • Expressive colors like deep blues, vibrant greens and warm terra cottas are gaining traction alongside dark neutrals
  • Practical space maximization like finished basements, built-in storage, and redesigned layouts are a hidden renovation gem

5. Aging-in-Place

According to NAHB data, 98% of remodelers report that most or some of their customers are familiar with aging-in-place design — up significantly from 75% in 2004.

Open floor plans, wider doorways, and first-floor primary suites are gaining traction among homeowners planning for the long term. This trend creates strong ongoing demand in multi-generational communities like those across the Midwest.

6. Midwest Specific Home Renovation Considerations

In the Midwest’s climate of harsh winters and hot summers, energy efficiency isn’t merely trendy; it’s essential. And the region’s practical, multi-generational homeowner base shapes what projects make sense here.

  • Weather-Resistant Features:
    • Midwest homeowners prioritize materials that withstand heavy snowfall, hail, ice, and humidity
    • Roofing, siding, and window replacements are top investments for long-term protection and energy efficiency
    • Foundation integrity and moisture management are ongoing concerns unique to our regional climate
  • Practical & Aesthetic Design:
    • Laminate flooring remains popular for its versatility and cost-effectiveness
    • Real stone countertops are sought after for durability and timeless appeal
    • Solid wood trim and interior doors add classic elegance that holds its value
    • Fiberglass exterior doors are valued specifically for their durability in Midwest conditions

Wisconsin is One of the Hottest Housing Markets in the Nation

Here is an important statistic that should matter to every Wisconsin homeowner: our state is not just participating in the national housing trend — we’re leading it.

Map of the top 10 hottest housing markets

According to Realtor.com’s February 2026 Hottest Housing Markets report, the Midwest and Northeast claimed every spot in the top 20, and Wisconsin stood out as the dominant state, with 7 cities in the top 20.

Homes in the hottest Wisconsin markets are moving fast. The median time on market in these rankings was 42 days. Well-priced homes are moving even quicker, and buyers need to be pre-approved and ready to compete, facing both local demand and shoppers relocating from pricier neighboring metros like Chicago and Minneapolis.

What does all of this mean for home improvement? When a housing market is competitive, inventory is tight, and homeowners can’t easily move up — they invest in the home they have. That’s exactly the dynamic playing out in southeastern Wisconsin right now.

Rising home values also mean renovations carry more financial weight: improvements in a market like this add real equity, not just aesthetic value.

Why Now is a Smart Time to Invest in Home Improvements

Now is a strategic moment to invest in your property, for several reasons:

  • Equity gains are real here: In a market where values are rising and competition is high, renovation ROI is stronger than in cooling markets.
  • Government incentives remain available: For energy-efficient upgrades, high-efficiency HVAC, upgraded insulation, and smart thermostats may qualify for tax credits.
  • Demand for contractors is growing: The number of remodeling businesses has risen 18% since 2020, but so has demand — acting now avoids longer wait times as the market heats up further into spring and summer.
  • Good weather in WI doesn’t last: Exterior projects have a real seasonal window. Planning now means work gets done before winter, but winter doesn’t have to stop interior renovation projects.

Contact JJB Home: Milwaukee’s Top-Rated Home Improvement Company

With home improvement trends evolving, now is the perfect time to invest in your home’s future. Whether you’re looking to modernize your kitchen or bathroom, or make weather-resistant upgrades to your home’s exterior, JJB Home Improvements has the expertise to bring your vision to life.

Brian, verified google review, JJB was able to quote and help complete just the scope required

Ready to start planning? Contact JJB Home Improvements today and let’s work together on your renovation goals!

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