Despite the recent surge in inflation impacting the growth rate of home improvement spending, a new study conducted by the online home and garden publication, Home Stratosphere, revealed that homeowners across the globe are still putting substantial resources into enhancing the functionality and aesthetics of their homes.
Topline
Not surprisingly, China leads the world in total spending, with $994.5 billion spent on home improvement. The vast majority ($711.1 million) of this nearly trillion-dollar total was categorized as hardware/do-it-yourself (DIY) tools.
Similarly, in the United States—whose total spending reached $932.7 billion (the second highest in the world)—hardware/DIY tools accounted for roughly 65%. The same can be said for New Zealand, Norway, Switzerland, Sweden and Canada, which also prioritize this category, showcasing a global trend toward personalized homes and self-reliance. Other categories include major appliances, home entertainment and furniture.
Topping the list for per-capita spending is New Zealand. According to the report, the small island nation’s total spending of $16.8 billion landed its per-capita spending at about $3,240.
Personalized living spaces, improved aesthetic and smart home technologies are key home improvement categories today. (Pexels)
Key Facts
- India has emerged with a robust home improvement market, spending a total of $286.851 billion (the third highest globally). Demand for major appliances and hardware/DIY tools made up the majority of home improvement spending, reflecting the rapid urbanization and the growth of the middle class in the country.
- An increased emphasis on smart security can be seen in countries like the U.S. and Japan. The U.S. is allocating $5.43 billion while Japan is investing $993.1 million in this sector, showcasing a growing interest in the integration of safety with advanced technology.
- European nations, in particular, placed a premium on quality and design. Countries such as Norway, Switzerland, Sweden, Iceland, Netherlands and Austria all rank in the top 10 for per capita spending.
- Meanwhile, the Middle East is witnessing the emergence of a luxury market, particularly in rapidly developing economies like Qatar. Qatar boasts a per capita spending of $1,590 with a significant emphasis on home entertainment and major appliances, reflecting a strong inclination toward modern conveniences and upscale living.
Big Number
$2,760—The per-capita expenditure of the U.S., whose diversity of spending across multiple categories highlights a well-established consumer market.
Crucial Pull-Out Quote
The trends and patterns in home improvement spending across the world’s top countries offer a rich and multifaceted insight into global living preferences and economic behaviors. With clear trends in areas like hardware and DIY tools and distinctions between developed and emerging markets, the data provides a snapshot of cultural values and economic narratives.
Hardware and DIY products account for approximately 65% of home improvement spending in the United States.(Pexels)
In-Depth Look
Investments in household living spaces hold a significant share of the global economy, with the home improvement industry witnessing remarkable growth in the aftermath of the COVID-19 pandemic.
As homeowners continue to invest in property improvements, distinctions have emerged between global markets, painting a complex picture of cultural and economic differences. While smaller, affluent countries emphasize quality and innovation, emerging economies prioritize major appliances, highlighting a move toward improved living standards.
At the same time, shared trends express a global desire for personalized living spaces and customization.
Such staggering totals in home improvement spending, along with the record-high sales volume of the global real estate market seen over the last few years showcases how owners and buyers are willing to invest their time and money into their homes.
