The State of Home Improvement: Key Trends and Market Insights

Everyone in the home improvement industry knows that the market never stands still. Contractors, retailers and manufacturers see customers adjusting their budgets, changing how they shop, renegotiating which brands they trust and who’s better for the task at hand on a daily basis.

So, what’s really happening on the ground? How are homeowners making their decisions? Where are they spending their money? And what trends should businesses keep an eye on? Let’s take a closer look at home improvement today.

Spending Priorities

The home improvement market is holding steady, but that doesn’t mean it’s business as usual. Homeowners are still investing in projects, true, however they’re also getting more and more selective about where their money goes. Rising costs, evolving consumer habits and a changing economic landscape are influencing every decision.

More Homeowners Tackling Projects

Between 38% and 49% of European households took on a home improvement project last year. Participation was strongest in the second and third quarters, but Q4 2024 saw a slight dip, dropping marginally to 39%. Despite this, home upgrades remain a priority, with a focus on practical improvements rather than just cosmetic changes.

Spending Priorities Are Shifting

Total spending in 2024 remained close to 2023 levels, but a 4% decrease was recorded in Q4 compared to 2022. Instead of splurging on decorative updates, many homeowners are prioritizing energy-efficient upgrades, necessary repairs and renovations that add long-term value to their homes. Sustainability improvements, while not growing as fast as before, continue to shape purchasing decisions. 

A 2025 Renewal?

Looking ahead, 20% of homeowners plan to start a home improvement project in early 2025, which is slightly higher than 2024. The biggest driver of this growth is expected to be larger decorative projects, while structural and maintenance-focused work may slow down.

DIY vs. DIFM – a Homeowners Tie-Break

For years, DIY has been synonymous with home improvement, with many homeowners willing to take on projects themselves. But more and more people are now opting to hire professionals. Let’s see what’s behind this trend.

DIFM Is Gaining Ground

In 2024, 39.3% of home improvement projects were outsourced to professionals, a significant increase from previous years. The main reasons? Homeowners want higher-quality results, expert craftsmanship and – lastly, but by no means least – the convenience of having the work done for them.

Younger Generations Less Inclined to DIY

The biggest decline in DIY is among younger homeowners. 45% of those under 35 prefer to hire a professional, compared to 24% of those over 55. Unlike previous generations, younger homeowners often have less hands-on experience, busier lifestyles, and thus a greater willingness to pay for professional services, rather than engage in them themselves.

DIFM Still Less Accessible

Even though more people want to hire professionals, labor shortages and high service costs are compelling barriers. 34% of homeowners say they’d outsource work if it were cheaper, and many are facing long wait times for contractors, especially for structural and energy-efficient renovations. This imbalance is something businesses need to navigate carefully in the coming years if they want to build trust and traction.

E-Commerce and Digital Influence

Technology is playing a bigger role in home improvement, but while e-commerce has transformed the way people shop, its rapid growth is now stabilizing. Instead of a complete shift to online shopping, homeowners are blending digital and in-store experiences to find the best deals and most reliable products.

Online Research Still Important

Some 48% of homeowners research home improvement products online. This number has remained steady in the past years, and is expected to remain foreseeably steady. While the pandemic of 2020 fueled a surge in digital research, reshaping the way we approach shopping and convenience, many consumers are indeed now returning to physical stores, especially for products they want to see in person before purchasing.

Social Media as Inspiration

Homeowners are turning to Instagram, Pinterest and YouTube to post, explore and influence new home improvement ideas. In fact, a telling 28% of consumers say social media influenced their home improvement purchases, with decorative and design-oriented products seeing the biggest boost. 

Online shopping Cross-Country

Not all European countries have embraced online home improvement shopping in the same way. It depends where you look and what you look for, so habits vary. The UK, Netherlands and Germany take the helm in online purchases, while Italy and Spain favor traditional in-store shopping. Some product categories, like power tools (26.3%) and window decorations (18.6%) perform well online, whereas adhesives, sealants and paint are still primarily bought in physical stores. 

A-Brands vs. Private Labels

In 2024, 96% of homeowners had a positive perception of private-label products. This, alongside the 50-50 balance we see in preference, reflects a growing trust in store-brand options, particularly as retailers improve product quality and pricing to compete with A-brands. 

Despite this rise in popularity with private labels, homeowners still prefer name-brand products for high-investment items. Meaning boilers (75%), roof windows (68%) or security cameras (67%) continue to be an A-brands game, with consumers clearly finding solace in quality and reliability. More affordable items like paint, adhesives and tapes are seeing stronger private-label competition. In other words, when it doesn’t matter, it doesn’t matter. But when it does – it matters overwhelmingly.

While private labels are growing across the board, certain markets remain more brand-loyal. Spain and Poland show a stronger preference for A-brands, particularly for high-end home improvement material, which is in stark contrast to countries like France and the Netherlands, where private-label adoption is accelerating.

European Habits Differ

How do the trends stack up across the continent? The UK has one of the highest rates of online home improvement shopping. DIFM is also becoming more common, with more homeowners opting for professional services over DIY. 

With 67.9% of home improvement projects done by homeowners, Germany continues to have the strongest DIY culture in Europe with a strong preference for in-store shopping.

French homeowners are split between DIY and DIFM, with 63% handling projects themselves but outsourcing larger jobs. French consumers also tend to favor name brands, especially for high-end home security and smart home products. 

Italy has the lowest DIY participation rate in Europe, with most home improvement projects getting outsourced to professionals. Italian consumers also show a strong preference for name brands, especially for high-investment items. 

Spanish and Polish consumers are among the most brand-loyal in Europe, favouring A-brands over private labels. In Spain, online research is common, but purchases are still mostly made in physical stores.

What’s Next?

If there’s one thing professionals can count on, it’s change. Homeowners are getting more strategic about how they invest in their homes, balancing between DIY and professional services, and adapting to a blend of online and in-store shopping. Private labels are proving their worth, but brand loyalty still carries weight in key product categories. Meanwhile, while e-commerce continues to be a major player, traditional retail remains important for high-value purchases.

Now is the time to rethink strategies, fine-tune offerings and position your business for the next wave of home improvement trends. Let’s help you adapt to tomorrow’s needs today.