The Home Improvement Research Institute (HIRI), the nation’s leading resource for market data on the home improvement industry, has revised its 2025 growth forecast downward in its latest U.S. Size of the Home Improvement Products Market report.

The total market, which reached $574.3 billion last year, is now projected to grow by 2.5% in 2025, down from the 3.4% growth forecast issued in June. Consumer market sales are expected to rise by just 1.3% (down from 2.6%), while professional market sales remain stronger, growing 4.6% (down slightly from 4.9%).

Economic pressures—including elevated material costs, persistently high interest rates, and a slowing housing market—are behind the revised outlook. Despite these challenges, HIRI notes that homeowner sentiment still shows demand for home improvement projects, though consumers are expected to make tradeoffs in product choices.

“Although consumer purchasing power may be shrinking in the short term, research on homeowner sentiment and intent shows that there is still an underlying appetite and demand for home improvement projects,” says Dave King, executive director of HIRI. “Businesses need to consider how they show up to meet homeowners where they are during less flexible financial times. Consider highlighting good/better product lines rather than better/best options, because homeowners will be making tradeoffs in order to bring projects to life.”

From 2025–2029, the home improvement products market is projected to grow 4.0% overall, with categories such as lawn and garden, hardware, tools, and plumbing supplies leading the way.