Angi Releases 2024 State of Home Spending Report
MWN-AI** Summary
Angi's 2024 State of Home Spending Report highlights the unwavering commitment of homeowners to their properties despite economic pressures. Even as total spending on home projects decreased by 12% in 2024, a remarkable 93% of homeowners are planning projects for 2025. This reflects a shift towards a "renovate over relocate" mentality, triggered by high interest rates and a lack of housing inventory, with 67% preferring to enhance their current homes rather than moving.
The report reveals that home projects have become the most stressful budgetary item for homeowners in 2024, surpassing concerns related to healthcare and childcare. Approximately 43% of homeowners report increased stress related to home repairs over the past year, underscoring the emotional toll of home maintenance. Angie Hicks, Co-Founder of Angi, emphasized the strong desire among homeowners to create functional and customized living spaces, viewing homeownership as both a financial and emotional investment.
Despite encountering challenges such as skilled labor shortages and unexpected costs, homeowners express optimism about 2025. Notably, younger homeowners are particularly concerned about their ability to afford maintenance. Generational trends show Boomers leading home spending, while Millennials focus more on maintenance. Homeowners are also increasingly prioritizing sustainability, with trends indicating a desire for energy-efficient upgrades and outdoor spaces.
Looking ahead, 63% of homeowners aged 18-44 are actively saving for future projects, reflecting a strategic approach to home investments. Popular upcoming projects include routine maintenance and interior painting, while substantial renovations, such as kitchen and bathroom upgrades, are on the horizon for nearly half of homeowners. Overall, Angi's report illustrates a resilient commitment to home improvement, even in the face of rising stress and economic challenges.
MWN-AI** Analysis
According to Angi’s 2024 State of Home Spending Report, the home improvement market remains resilient despite economic pressures. A significant 93% of homeowners plan to engage in renovation projects in 2025, reflecting a strong “renovate over relocate” mentality driven by high interest rates and limited housing inventory.
Home projects have become the most stressful budget item for homeowners, surpassing even healthcare and childcare. This rising stress underscores the urgency of addressing home maintenance needs while balancing tighter budgets. Homeowners are increasingly facing challenges such as skilled labor shortages and unexpected costs, heightening anxiety around repairs and renovations.
Market analysts should advise clients to prioritize planning and budgeting for essential maintenance and strategically choose projects that enhance long-term value. Given that homeowners favor renovations over relocating, sectors such as interior design, landscaping, and eco-friendly solutions stand to benefit from sustained demand. Notably, younger homeowners are significantly concerned about affordability, suggesting a growing opportunity for cost-effective and innovative solutions in home upgrades.
Additionally, generational spending trends indicate that Baby Boomers lead the way in high-value home projects, while Millennials focus on maintenance—a promising dynamic for service providers catering to diverse needs. Investors in the home improvement space should concentrate on marketing sustainable and energy-efficient options, as 63% of homeowners under 44 are actively saving for such upgrades.
In summary, the home improvement market presents viable opportunities for growth in 2025, despite economic headwinds. Stakeholders should focus on addressing the skilled labor gap, providing transparent pricing for materials, and capitalizing on the trend of multigenerational living by promoting renovations that accommodate evolving family structures. This strategic approach can help stabilize stress levels and encourage sustainable spending in a challenging economic environment.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
- Interest rates will continue to drive “renovate over relocate” mentality in 2025
- 93% of homeowners are planning projects in 2025 despite economic pressures and rising stress levels
- Home projects emerged as the most stressful budget item in 2024, surpassing healthcare and childcare
DENVER, Jan. 28, 2025 (GLOBE NEWSWIRE) -- Homeownership continues to play a central role in the American dream, and despite navigating tighter budgets and rising stress levels, homeowners remain dedicated to the care and improvement of their homes. Angi’s 2024 State of Home Spending Report reveals that 93% of homeowners plan to take on home projects in 2025, even as total spending on home projects dropped by 12% in 2024.
With interest rates remaining high and housing inventory scarce, 67% of homeowners express a preference for renovating their current homes to better meet their needs rather than moving, underscoring the value they place on their homes amid economic challenges and the ongoing stress of home maintenance. The study found that 43% believe stress related to home repairs has increased in the last year. According to the survey, home repairs, maintenance, and improvement was the budget item that caused the most stress, ahead of other costs, including healthcare, debt, savings, childcare, education, and entertainment.
“Homeowners are clearly committed to their homes,” said Angie Hicks, Co-Founder of Angi. “Even as economic pressures and challenges to getting projects done mount, the desire to create functional, personalized, and well-maintained spaces is stronger than ever. The optimism for 2025 reflects the enduring value of homeownership as both a financial and emotional investment.”
In Angi’s report, pros shared that homeowners were excited to tackle upgrades like interior painting using simpler palettes and monochromatic schemes, remodeling bathrooms with larger, easier to maintain showers, making durable and budget-conscious landscaping improvements, and installing new flooring using lighter and natural shades.
The Hurdles of Homeownership
While homeowners remained dedicated to their properties, especially as they stayed in their homes due to higher interest rates, they faced some challenges in getting projects done.
- Skilled Labor Shortages: While nearly all homeowners (93%) plan to tackle projects in 2025, 54% shared that they struggle to find qualified professionals, citing delays, higher costs, and limited availability.
- Unexpected Costs: When homeowners did complete projects, over 50% shared that they encountered surprise expenses, especially for materials and labor.
- Rising Stress: Overall, 61% of homeowners are concerned about being able to afford home maintenance or repairs in 2025, with this sense of concern being heightened among younger homeowners.
Generational Spending Trends: Boomers Lead, Millennials Prioritize Maintenance
- Boomers led home spending in 2024, averaging $14,140, with a focus on home improvements.
- Millennials prioritized maintenance, spending $2,316 on upkeep–$1,000 more than any other generation.
- High-income households earning over $150,000 increased spending to $21,958, up from $20,649 in 2023.
2025 Home Trends: Sustainability, Innovation, and Multigenerational Living
- Future-Focused Budgeting: 63% of homeowners aged 18-44 are actively saving for future projects, compared to just 49% of homeowners aged 65 and older.
- Sustainability Gains Momentum: Homeowners are planning for outdoor spaces, solar panel installations, and energy-efficient upgrades, reflecting a push towards sustainable living.
- Multigenerational Needs: With 1 in 4 homeowners living in multigenerational households, these households are more likely to be taking on larger renovations and adding lifestyle-enhancing features to their homes.
Despite Challenges, Homeowners Continue to Invest Strategically
Even with tighter budgets, homeowners made thoughtful investments in their homes in 2024 and started planning for 2025:
- 93% Plan Projects in 2025: Popular upcoming projects include routine maintenance (36%), interior painting (22%), and flooring installations (13%).
- Long-Term Investments: 46% of homeowners plan large-scale projects over the next five years, such as kitchen remodels (31%) and bathroom upgrades (28%).
- Renovation Over Relocation: 67% of homeowners would prefer to renovate rather than move, reflecting challenges like high interest rates and limited housing inventory.
Home Project Spending Declines 12% in 2024, with Focus Shifting to Essentials
Homeowners spent an average of $12,050 on home projects in 2024, down from $13,667 in 2023. While discretionary improvements slowed, essential upkeep and lifestyle-driven upgrades took priority.
- Home Improvements: Home improvements remained the largest spending category, with homeowners spending an average of $9,322, relatively flat compared to $9,542 in 2023.
- Home Maintenance: Spending dropped to $1,750 (down from $2,458 in 2023), signaling a focus on essential upkeep.
- Emergency Repairs : Spending on emergency projects decreased to $978 in 2024, compared to $1,667 in 2023), a positive indicator that proactive maintenance is reducing costly emergencies.
To explore the full insights from Angi’s 2024 State of Home Spending Report download the report here .
About Angi Inc.
Angi (NASDAQ: ANGI) helps homeowners get home projects done well and helps home service professionals grow their businesses. We started in 1995 with a simple goal to help people find skilled home pros in their area. Now more than 25 years later, we've evolved to help people with everything from finding, booking and hiring a skilled pro, to researching costs, finding inspiration and discovering project possibilities. With an extensive nationwide network of skilled home pros, Angi has helped more than 150 million people maintain, repair, renovate and improve their homes and has helped hundreds of thousands of small local businesses grow.
Angi Corporate Communications
Emily Do
(303) 963-8352
emily.do@angi.com
FAQ**
How might the trends highlighted in Angi Inc. ANGI's report influence demand for home improvement services in 2025, given the rising preference for renovation over relocation among homeowners?
What strategies can Angi Inc. ANGI implement to address the skilled labor shortages faced by homeowners planning projects in 2025, as reported in their 20State of Home Spending Report?
Considering the unexpected costs faced by homeowners, how can Angi Inc. ANGI assist in educating clients about budgeting for home projects in 2025 to alleviate some of the stress related to home repairs and maintenance?
With sustainability gaining momentum, how can Angi Inc. ANGI align its services with the emerging demand for energy-efficient upgrades and outdoor spaces among homeowners in 2025?
**MWN-AI FAQ is based on asking OpenAI questions about Angi Inc. (NASDAQ: ANGI).
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