U.S. Home Improvement Spending Over Time

After surging over the past decade, home improvement spending pulled back in 2023

After falling by an inflation-adjusted 24% from a high in 2006 to a low in 2011 as a result of the Great Recession, home improvement spending growth got back on track between 2012 and 2019 as the housing market recovered. However, spending then grew sharply during the height of the COVID-19 pandemic before plateauing in 2022 and declining in 2023. According to loan-level data from the Home Mortgage Disclosure Act , the number of single-family home improvement loans originated climbed to nearly 745,000 in 2022 before subsequently declining to 565,000 in 2023.

Typically, home improvement spending falls during economic downturns; however, the COVID-19 recession proved to be an exception to the rule. One key reason is that the early stages of the pandemic disproportionately impacted lower-wage workers who were less likely to own homes. Meanwhile, higher-income homeowners didn’t suffer the same level of job losses or reduced wages but benefited from reduced spending on things like eating out and travel, which freed up funds for other expenses. With many of these homeowners spending more time at home, they were eager to create home offices, gyms, and backyard oases featuring decks, outdoor kitchens, and pools.