Home Improvement Research Institute Revises 2025 Remodeling Forecast Lower
Home improvement market forecast
The Home Improvement Research Institute (HIRI) has revised its 2025 market growth forecast downward, citing “prevailing macroeconomic challenges,” according to a review of its US Size of the Home Improvement Products Market report by HBSDealer (6-6-25).
HIRI is composed of major retailers, manufacturers, distributors, publishing companies, and trade associations in the home improvement industry.
After reaching $574.3 billion in 2024, NIRI expects the total home improvement market to grow 3.4% in 2025, down from the 5% growth forecast issued in March.
The update also highlights a growing gap between the professional and consumer markets. HIRI now expects consumer market sales to grow 2.6% in 2025, a notable drop from the previous 4.9% estimate. In contrast, the professional market remains stronger, with projected growth of 4.9%, more consistent with the March outlook.
According to HIRI, four factors are shaping home improvement spending:
- Rising costs and tariffs
- Challenges in the housing market
- Slowing consumer spending and income growth
- A cooling labor market
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