Australia Home Improvement Market Size, Share Analysis and Forecast Report 2025-2034

Australia Home Improvement Market Trends

The growth of the Australia home improvement market is driven by increasing consumer demand, fuelled by rising property values and homeownership. As disposable incomes rise, consumers are more able to invest in renovations, while the popularity of DIY projects boosts the demand for tools and materials. The growing number of homeowners also leads to greater renovation needs. Home improvements add significant value to properties, offering a solid return on investment. In October 2024, Bunnings introduced DIY garden kits for home gardeners, catering to the rising interest in outdoor spaces. These kits provide all the essentials required to create lively outdoor spaces, from seeds to tools, addressing the increasing interest in gardening and outdoor enhancements among homeowners in Australia.

Government incentives, such as grants for energy-efficient renovations, also play a role in influencing Australia home improvement market dynamics and trends. Additionally, the focus on sustainability encourages demand for eco-friendly materials and energy-efficient appliances, while technological advancements, such as smart home products, further enhance the appeal of home improvements. The rise of remote working has increased demand for home office upgrades, and Australians are increasingly investing in gardens and patios, boosting landscaping and furniture sectors. In June 2024, Harvey Norman launched a new range of smart kitchen appliances, including voice-controlled ovens and fridges, aimed at homeowners looking to modernise their kitchens.

Australia Home Improvement Market Growth

The demand of Australia home improvement market is being driven by increased renovations in kitchens, bathrooms, and living spaces, leading to higher demand for related products. The ageing housing stock necessitates regular updates, ensuring continuous market activity. Easy access to home improvement loans encourages consumer spending, while the diverse market offers a wide range of services. Australians' growing desire for customised home products fuels the demand for personalised improvements. In August 2024, Mitre 10 launched a new range of outdoor living products, including furniture and accessories designed to enhance Australian backyards, responding to the increasing popularity of outdoor renovations.

Energy efficiency is a key focus in the Australia home improvement market, with homeowners investing in solar panels and insulation to reduce energy costs. The rise of e-commerce and online platforms has expanded access to home improvement products. Trends in interior design are also driving demand for furniture and decor. The growing need for skilled tradespeople, such as electricians and carpenters, supports the professional services sector. Furthermore, the strong property market is encouraging investments in both interior and exterior home improvements, spurring further growth. In March 2024, Plungie introduced eco-friendly pool designs that lower energy consumption and carbon footprints, appealing to environmentally conscious homeowners seeking sustainable outdoor features.

Australia Home Improvement Market Insights

• The Australian Bureau of Statistics reports that the value of new residential construction rose by 19.4% in January 2024, reaching USD 7.14 billion.
• Australia's construction industry contributes approximately USD 162 billion to the economy each year, accounting for around 10% of the GDP, according to industry data.
• The ABS also highlights that rental properties in regional areas make up over a quarter of all rental properties, with 10% of households renting in these regions.

Industry News

September 2024

James Hardie introduced a new line of sustainable siding products made from recycled materials. This move is designed to offer homeowners durable, eco-friendly choices for exterior renovations, aligning with the increasing demand for sustainable building practices in Australia.

April 2024

Ramsay Pharmacy expanded its range of home health improvement products, including air purifiers and water filtration systems. This initiative aims to cater to health-conscious consumers seeking to improve indoor air quality and overall well-being within their homes.

Australia Home Improvement Market Drivers

Growing Emphasis on Sustainability

The Australia home improvement market is witnessing an increasing demand for eco-friendly and sustainable products. Consumers are placing greater importance on energy-efficient appliances, sustainable building materials, and environmentally conscious home improvements. This shift is driven by concerns about the environment and rising energy costs. Homeowners are investing in solar panels, insulation, water-saving systems, and energy-efficient windows to lower their carbon footprints and reduce long-term utility expenses. Government incentives and rebates for sustainable renovations are further facilitating this transition, making eco-friendly upgrades more accessible and affordable. In June 2023, Bunnings launched a new range of eco-friendly paints, featuring low-VOC formulas, catering to consumers seeking to improve their homes sustainably without compromising air quality.

Surge in DIY and Online Shopping

A significant trend in the Australia home improvement market is the rise in DIY (do-it-yourself) home renovation projects, as more consumers choose to tackle tasks themselves to save money and personalise their living spaces. This shift is driven by easy access to home improvement products online, allowing Australians to conveniently purchase tools, materials, and other renovation essentials from the comfort of their homes. E-commerce platforms and DIY tutorials have further empowered homeowners, making home renovations more accessible. Consequently, there has been a notable shift towards shopping online for DIY supplies. In October 2024, Mitre 10 launched an innovative, user-friendly paint sprayer for DIY enthusiasts, simplifying the painting process and enabling homeowners to achieve professional finishes with minimal effort.

Opportunities in the Australia Home Improvement Market

The Australia home improvement market is increasingly adopting technology, particularly smart home products. Homeowners are incorporating smart devices such as thermostats, security cameras, lighting systems, and voice-controlled assistants to improve convenience, safety, and energy efficiency. The growing interest in home automation and Internet of Things (IoT) solutions is driving the demand for more advanced home improvement products. Moreover, smart technology enables homeowners to manage energy use more effectively, supporting sustainability initiatives. As technology continues to progress, the market for smart home improvements is expected to grow, with more Australians looking to create high-tech living spaces. In October 2024, Lowe's Australia launched a new range of smart home devices, including security cameras and smart lighting systems, designed to improve home security and energy efficiency, in response to the rising demand for integrated smart technology in home renovations.

Market Restraints

The Australia home improvement market faces several key restraints. High material and labour costs, driven by global supply chain issues and a shortage of skilled tradespeople, make renovations unaffordable for many homeowners. Economic uncertainty, including inflation and rising interest rates, limits consumer spending on non-essential projects.

Regulatory and compliance challenges, with varying building codes and permits across states, can delay, and increase the cost of renovations. The shortage of skilled labour, exacerbated by an ageing workforce and insufficient apprenticeships, results in delays and higher costs. Lastly, limited access to affordable financing, especially with rising interest rates, restricts homeowners' ability to undertake larger renovation projects.

Australia Home Improvement Market Share

Market Analysis by Project

According to the Australia home improvement market analysis, the market is primarily driven by DIY (Do-It-Yourself) projects, which empower homeowners to take control of their renovations, offering both cost savings and a sense of achievement. The increasing availability of tools and resources promotes creativity and personalisation, allowing individuals to customise their projects to suit their preferences and needs, leading to greater overall home satisfaction. In September 2024, Australian hardware retailer Home Timber & Hardware launched a DIY workshop series aimed at teaching homeowners’ essential skills. This initiative focuses on affordable renovations and practical solutions, reflecting the rise of DIY projects in Australia during the pandemic.

The growth of the Australia home improvement market is also supported by DIFM (Do-It-For-Me) services, which offer convenience to homeowners who prefer professional assistance with their renovations. This approach guarantees high-quality results and saves time, allowing individuals to focus on other priorities. As homes become more complex, many Australians are opting for expert help to achieve their desired outcomes efficiently. In October 2024, Handyman Connection announced the expansion of its DIFM services across Australia, providing comprehensive home repair and renovation solutions. This initiative aims to serve busy homeowners seeking reliable assistance, ensuring quality workmanship and customer satisfaction.

Market Analysis by Application

According to the Australia home improvement market report, kitchen improvements and additions play a leading role in enhancing functionality, aesthetics, and energy efficiency. Upgrading appliances and layouts can increase property value and improve the overall cooking experience. A well-designed kitchen encourages family interaction and promotes better organisation, making daily tasks more enjoyable and efficient for homeowners. In September 2024, IKEA unveiled customisable kitchen designs, allowing homeowners to personalise layouts and finishes according to their preferences. This initiative addresses the growing demand for tailored home improvement solutions, making kitchen renovations more accessible and enjoyable.

The demand of the Australia home improvement market is further driven by bathroom improvements and additions, which enhance comfort, safety, and energy efficiency, while also adding significant value to properties. Upgrading fixtures and finishes can transform outdated spaces into luxurious retreats, while improved layouts optimise functionality, making daily routines more enjoyable and efficient. In August 2024, Caroma launched a new range of smart toilets featuring advanced technology for improved hygiene and comfort. This product aims to modernise bathrooms, offering homeowners innovative solutions to enhance sanitation and the overall user experience in their homes.

Australia Home Improvement Market Regional Insights

New South Wales Home Improvement Market Overview

The home improvement market in New South Wales is buoyed by strong consumer demand for renovations, especially in kitchens and bathrooms. The market is further supported by rising property values and a growing trend towards outdoor living spaces, which encourage investment in home enhancements. In 2023, New South Wales saw 43,000 new residential building approvals, demonstrating steady housing demand. The median house price in Sydney reached AUD 1.2 million, according to the NSW Government in 2023.

Queensland Home Improvement Market Trends

According to the Australia home improvement industry analysis, Queensland's home improvement market is marked by a surge in DIY projects and outdoor renovations. Consumers are increasingly focused on energy-efficient upgrades and sustainable materials, driven by environmental consciousness and government incentives aimed at improving comfort and reducing energy costs. In 2023, Queensland recorded 35,000 new residential building approvals, reflecting strong growth in housing demand. The state government continues to support affordable housing initiatives to meet this demand, as reported by the Queensland Government in 2023.

Western Australia Home Improvement Market Dynamics

The home improvement market in Western Australia benefits from a robust economy driven by mining and resources. Consumers are prioritising renovations that increase property value, such as outdoor living spaces and energy-efficient upgrades, in line with a growing trend for sustainability in home improvements. In 2023, Western Australia recorded around 25,000 new residential building approvals, indicating ongoing demand for housing. The state government is promoting initiatives to expand affordable housing options for residents, according to the WA Government in 2023.

Competitive Landscape

The Australia home improvement market key players have a diverse portfolio across various sectors, including electronics, construction, and materials science. These companies provide innovative solutions for industries such as automotive, healthcare, and agriculture. They are known for cutting-edge products like advanced coatings, polymers, and materials designed to enhance performance, sustainability, and efficiency.

Key Industry Players

3M Co.: Established in 1902 and headquartered in St. Paul, Minnesota, 3M is a global leader in innovation, manufacturing products across a diverse range of industries. Known for its expertise in adhesives, abrasives, and coatings, the company provides home improvement solutions, including flooring, insulation, and safety products, enhancing quality and performance worldwide.

DuPont de Nemours Inc.: Founded in 1802 and headquartered in Wilmington, Delaware, DuPont is a science and technology company. It develops materials, chemicals, and solutions for a variety of sectors, including home improvement. DuPont’s innovations in insulation, adhesives, and coatings support sustainable, high-performance improvements in homes and construction projects globally.

Kohler Co.: Founded in 1873 and headquartered in Kohler, Wisconsin, Kohler is renowned for manufacturing kitchen and bath products. The company provides home improvement solutions, including faucets, sinks, and high-end bathroom fixtures. Kohler is committed to sustainable, design-driven innovations that enhance the functionality and aesthetics of residential spaces.

Rockwool A/S: Established in 1937 and headquartered in Hedehusene, Denmark, Rockwool is a global leader in stone wool insulation. The company’s products are used in residential, commercial, and industrial buildings to improve energy efficiency and soundproofing. Rockwool is dedicated to sustainable solutions that contribute to environmental protection and building performance.

Other key players in the Australia home improvement market report are Bunnings Australia, B&Q Limited and Miniso Australia, among others.

Recent Developments

November 2024

The Energy Upgrades for Australian Homes initiative was introduced to promote energy efficiency improvements in residential properties. The programme is designed to offer homeowners the resources and support needed to implement sustainable upgrades, tackling climate change concerns while improving home comfort and lowering energy costs.

September 2024

Australian company Mr Spriggins launched a new DIFM service providing professional landscaping and garden design. This service enables homeowners to work with experts to enhance their outdoor spaces, responding to the increasing demand for outdoor living and garden improvements.