Remodelers in the Know: Winter 2025 Industry Trends
Stay on top of industry news, current trends and material cost changes with Clear Estimates’ Remodelers in the Know news bulletin!
Each quarter we summarize industry news and updates, along with our current material cost data analysis, to bring you this free & convenient digest.
In our first edition we look at the remodeling industry outlook in the first quarter of 2025.
Increase in Remodeling Spending Expected in 2025
Harvard University's JCHS Remodeling Futures Program predicts a 1.2% increase in home renovations by Q3 2025, according to Woodworking Network.
Rising home values, coupled with an increase in new construction could mean a surge in remodels & repairs. This is a great outlook for contractors looking to take advantage of the increase.
While 2024 saw decreases, home improvements and repairs on occupied homes are expected to increase by the middle of this year.
Source: Woodworking Network
Source: Woodworking Network
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Uptick in Aging in Place Home Improvements
In an effort to “future-proof” homes for the long term, more consumers are investing in aging-in-place upgrades.
While the market has slowed for larger remodels, more homeowners are focusing on long range improvements. This includes spending on energy-efficient appliance upgrades, accessibility enhancements and other modifications that can help homeowners as they age.
Sharing a recent report from KitchenBathDesign News, HousingWire points to material & labor cost increases as a reason for the decline in larger projects, but sees homeowners prioritizing smaller repairs and preventative upgrades.
Source: Housingwire
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Cabinet Spending Decrease Seen in 2024
Kitchenbathdesign notes a decline in kitchen cabinet and bathroom vanity sales in 2024.
Citing a recent study from KCMA’s Trend of Business Survey, the report saw a decrease of over 3% in sales from the previous year.
The report notes that stock cabinets have fallen by more than 12%, while semi-custom cabinets dropped more than 5%. Fully custom cabinets saw a drop of more than a 15%.
Read the full report from Kitchenbathdesign.Source: Kitchenbathdesign
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Material Pricing Trends - Q1 2025
The costs of remodels and home additions have seen a few region fluctuations since Q4 2024.
Per Clear Estimates’ Q1 2025 material cost trends, the cost of a 200 SF kitchen remodel increased by 0.1% in the Northeast and 0.7% in the Midwest, but decreased in the Southeast (0.1%) and in the West (1.1%).
By contrast, costs of an 800 sq. foot home addition saw a significant increase, from 2.9% in the West to 4.2% in the Midwest.
Material prices have fluctuated nationally, with notable trends including a 10% increase in pressure-treated decking in the Southwest and West, and a decrease in drywall and plywood prices in a few regions.
Concrete prices have also risen, with a 3.7% increase in the Midwest.
This information is sourced from Clear Estimates’ Q1 2025 Quarterly Behavior Index.
Clear Estimates draws on a wide range of data sources to provide accurate & reliable material & labor costs, covering all 50 States. This makes it easy for remodelers to estimate their jobs accurately and in a fraction of the time.
Each quarter Clear Estimates publishes our Quarterly Behavior Index, where we examine material cost trends per region across the US.
See the current Quarterly Behavior Index here!
Source: Clear Estimates
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