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.”