Home services spending slows, but outlook stays strong

Angi on Tuesday released its annual ‘State of Home Spending Report,’ highlighting trends in how Americans invested in their homes in 2024 — and their plans for this year.  

Why it matters: The report is one of the largest home services-focused studies available, surveying nearly 7,000 homeowners nationwide. 

What’s happening: U.S. homeowners, on average, spent $12,050 on improvements, maintenance, and emergency repairs in 2024 — a 12 percent drop from 2023.

• Installing new HVAC systems was among the most popular upgrades, representing 12 percent of all recorded projects. 
• “This shift reflects a reprioritization of spending, with essential upkeep and lifestyle-enhancing upgrades taking precedence over discretionary improvements,” the report says. 

Of note: Higher-income households — those earning more than $150,000 a year — bucked the trend, spending slightly more than in 2023. 

Zoom in: Baby Boomers led overall spending, averaging just over $14,000, while millennials spent the most on maintenance, in particular. 

• Millennials were also twice as likely to finance projects than Gen X, which prefers to rely on savings. 

The big picture: The findings come as interest rates hit their highest levels in nearly 20 years and household debt continued to climb. 

• “Looking ahead, 61 percent of homeowners are concerned about affording maintenance or repairs in 2025, with younger homeowners feeling this pressure more acutely,” the report adds. 

Yes, but: Despite the pressures, 93 percent of respondents intend to “take on home projects” this year, per the report.

• They’re planning even further ahead, too, with 17 percent eyeing a new HVAC system over the next five years. 

The bottom line: “While total home project spending declined,” the report notes, “This year’s findings underscore a collective resilience among homeowners who are determined to preserve and enhance their most significant asset — their home.”

• Full report