The remodeling industry saw a small downturn in the past year, but all signs point to a remodeling spending uptick now, through mid-2025.
2025 is looking really good for the remodeling industry and we expect the demand for home builders, remodelers, and designers to continue to grow.
That’s why if you’re a housing professional, it’s important to stay up to date on the latest remodeling trends to take full advantage of the demand.
So as we move into 2025, what are some specific trends in the remodeling industry that you should keep your eye on? And how can you adapt your business to grow with the trends?
In this 5-minute read, you’ll get everything you need to know.
Let’s get started!
A Restart of Interest Rate Cuts Could Accelerate Project Growth
The Federal Reserve has started to make interest rate cuts in Fall 2024 which has changed initial predictions for much slower remodeling growth in 2025. While these won’t make an immediate impact, but over time we will see an increase in demand for more construction projects.
Previously the American Institute of Architects (AIA) predicted 2024 would close with a 7% gain on commercial remodeling projects and decrease even further to only 2% in 2025. While they have not made a statement on their new adjusted predictions, we are seeing hiring within the remodeling and construction industry remain strong and even increase signally that project activity remains stable if not growing.
Trends to Expect in the Remodeling Industry in 2025
Let’s take a look at 5 of the biggest remodeling trends you can expect to see in 2025.
Integration of Advanced Construction Technologies
This home remodeling trend remains strong going into 2025. Robotics, drones, 3D printing, and more are transforming job sites and streamlining efficiency.
3D printing: Cut down material waste, labor expenses, and build time.
Drones: Increase efficiency in site surveys and monitoring progress
Robotics: Automate repetitive basic tasks to free up time to work on more complex projects.
Increased interest in sustainable construction practices
Green building methods are going to be on the rise in 2025. As you analyze recent remodeling trends, you can see a big shift towards creating sustainable structures with a strong focus on sustainable construction practices.
In fact, according to the Global Wellness Institute (GWI), the global wellness real estate market grew from $148 billion in 2017 to $275 billion in 2020. And in the US the wellness real estate market essentially doubled in size in those same three years.
And that trend won’t be stopping any time soon. More homeowners want houses that are designed to provide healthier environments and support healthy lifestyles.
That means a greater focus on natural lighting, sustainable materials, improved air quality, and biophilia (implementing natural elements and greenery into home designs). Using energy-efficient systems like solar panels, and eco-friendly materials such as recycled steel or bamboo. Bathrooms tend to use a lot of water and electricity so look for 2025 bathroom remodel trends to focus on energy-saving LED light fixtures, water-saving toilets, and low-flow showerheads.
All of this will mean new business opportunities for contractors who can meet the wellness demands of their clients. To get a head start it would be beneficial to look into LEED qualifications to give you a competitive edge.
Millennials transitioning are hiring professionals
YouTube and HGTV have made DIYers out of just about everyone. But DIY projects around the home aren’t always as easy or money-saving as many think. That’s why more and more homeowners (especially millennials) are turning to professionals.
Millennials value originality and authenticity which is a big reason why so many embark on DIY projects to customize their homes. And once they get their feet wet with simple projects like gardening or painting, many millennial homeowners end up hiring professionals for more complicated projects — like kitchen and bathroom remodels.
This also means that you should be ready to discuss a wide range of design ideas. Many modern homeowners are frequent users of Instagram, Pinterest, or Houzz so they have tons of design inspiration and ideas. They just need a remodeling contractor to help make them a reality.
Ongoing Supply Chain Disruptions & Labor Shortages
The supply chain crisis isn’t over yet and building supplies are likely to continue to fluctuate widely in price. In 2025, wood, plastics, and thermal protection materials might increase as much as 6.7%. Looking into bulk purchasing when you see a good deal could be beneficial for long-term savings.
You can expect it to be challenging to find the exact materials and products you need. Get ready to present clients with several design concepts and then go with the one that has currently available materials.
You can also expect ongoing labor shortages with the remodeling and construction industry needing to add over 500,000 workers to meet demands. With this, it might be time to get creative and see how automation can help in the meantime.
High-quality renderings in the design process
With remodeling trends showing an increased demand for custom home projects, project presentations are going to be more important than ever. Most homeowners aren’t satisfied anymore with a simple verbal explanation or hand-drawn sketch of what you’re proposing.
That’s where high-quality 3D images come in (like the ones produced with Cedreo). They make it easy to show clients different color schemes, furnishings, layouts, finishes, and materials before they make a final decision.
And 3D renderings also help you and your clients stay safe. Instead of always having to do in-person visits, you can present your ideas virtually and give project estimates without visiting the home.
Just be sure to get an easy-to-use design program for renderings — like Cedreo — so you don’t have to hassle with complicated 3D modeling software.
Main Takeaways for Remodelers in 2025
Based on these 2025 remodeling trends, what should you as a contractor do to keep up with the market? Here are a few tips.
- Be ready to present a variety of ideas. Remember, more and more homeowners want to customize their space with unique design concepts.
- Stay up-to-date on modern wellness designs & qualifications. Make sure you know how to work with sustainable materials and energy-saving fixtures.
- Sign up for an easy-to-use home design software like Cedreo. With Cedreo you can save loads of time when creating project proposals. And best of all you don’t have to be a 3D design whiz to create high-quality renderings that wow clients!
- Stay organized. With increased demand and continued supply shortages, you’ll likely need to spend extra time managing your busy schedule. So look for ways to save time in other areas like the design phase.
So are you ready for 2025? Cedreo is ready to help you take advantage of this year’s remodeling trends. Sign up today! With a FREE version, you’ve got nothing to lose.
- Save loads of time during the design phase
- Impress clients with HD project renderings
- Streamline client communication with easy-to-understand 2D and 3D plans
- No design experience is required!
