Australia Home Improvement Market Size & Share | Growth - 2034

​Australia's home improvement market is experiencing a period of contraction, with expectations of continued softness for at least the next 12 months. This downturn is influenced by factors such as elevated interest rates, rising living costs, and a decline in consumer spending on non-essential renovations. Concurrently, homeowners are increasingly prioritizing sustainable and energy-efficient upgrades, including solar panels, insulation, and water-saving systems, driven by environmental concerns and potential long-term savings. Additionally, there is a growing demand for smart home technologies, such as automated lighting and security systems, as part of modernizing living spaces. Despite economic challenges, these trends indicate a shift towards more thoughtful, functional, and eco-conscious home improvements.​

Australia Home Improvement Market Size and Growth

The Australia home improvement market size, valued at AUD 23.81 billion in 2024, has seen significant growth in recent years. A key driver of this expansion is the increasing popularity of DIY projects, which has fueled demand for tools, materials, and home improvement resources. Changing consumer preferences, influenced by home design trends and the desire for personalized living spaces, have also contributed to the market’s momentum. Retailers and suppliers are adapting by offering more accessible products and online platforms, making it easier for homeowners to take on renovation projects themselves.

Looking ahead, the market is projected to grow at a compound annual growth rate (CAGR) of 7.20% from 2025 to 2034, potentially reaching AUD 47.72 billion by 2034. This growth is further supported by various government grants and rebates promoting energy-efficient renovations, encouraging Australians to upgrade their homes sustainably. As environmental awareness rises, consumers are increasingly investing in eco-friendly solutions such as insulation, solar energy systems, and water-efficient appliances. With ongoing innovation and policy support, the home improvement sector in Australia is poised for robust, long-term growth.

Australia Home Improvement Market Trends

​The Australian home improvement market is characterized by several key trends:​

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1. Sustainability and Energy Efficiency: Homeowners are increasingly prioritizing eco-friendly renovations, including solar panel installations, energy-efficient insulation, and water-saving systems. This shift is driven by rising energy costs, environmental awareness, and government incentives promoting sustainable living.

2. Smart Home Integration: The adoption of smart technologies is on the rise, with homeowners incorporating automated lighting, security systems, and climate control into their renovations. These technologies enhance convenience and energy efficiency, aligning with modern lifestyles.

3. Multi-Functional and Outdoor Living Spaces: There is a growing demand for versatile living areas that can serve multiple purposes, such as home offices or gyms. Additionally, outdoor spaces like patios and alfresco dining areas are being expanded to create seamless indoor-outdoor living experiences.

4. DIY Enthusiasm: Many Australians are embracing do-it-yourself projects, leading to increased demand for tools, materials, and home improvement resources. This trend reflects a desire for personalized and cost-effective home upgrades.

Market Opportunities and Challenges

​The Australian home improvement market presents both significant opportunities and notable challenges.​

Opportunities:

1. DIY Market Growth: Australia ranks among the top global DIY markets, with a growing number of homeowners undertaking renovation projects, driving demand for tools and materials.

2. Government Incentives: Various grants and rebates for energy-efficient renovations encourage homeowners to invest in sustainable improvements.

3. Smart Home Integration: Increasing adoption of smart technologies presents opportunities for businesses offering innovative solutions in home automation.​

Challenges:

1. Labor Shortages: The construction industry faces significant labor shortages, with job vacancies up 33.7% between November 2024 and the same period in 2019, leading to project delays and increased costs.

2. Supply Chain Disruptions: Ongoing supply chain issues contribute to delays and increased costs for home improvement projects.

3. Regulatory Complexity: Complex and inconsistent regulations can hinder project delivery and business operations.

Australia Home Improvement Market Analysis

The Australian home improvement market has evolved rapidly in recent years, driven by shifting consumer preferences, lifestyle changes, and increased interest in property enhancement. Homeowners are focusing more on upgrades that improve energy efficiency, comfort, and functionality, with strong interest in sustainable materials, smart home technology, and multi-purpose living spaces. DIY culture continues to thrive, supported by greater access to online tutorials and retail platforms offering easy-to-use tools and renovation kits. The sector also benefits from growing demand for renovations in older properties and the trend toward remote work, which has sparked interest in home offices and flexible interior layouts.

Despite this growth, the market faces several challenges. High interest rates, inflation, and labor shortages are affecting project timelines and affordability, causing some homeowners to delay or scale back renovations. Supply chain disruptions have also impacted the availability and cost of materials, creating bottlenecks across the industry. Regulatory complexity and varying local council requirements further complicate project execution. Nevertheless, long-term prospects remain positive, supported by consumer interest in home value enhancement and ongoing policy support for energy-efficient upgrades. The market’s resilience lies in its ability to adapt to economic pressures while aligning with evolving homeowner needs.

Competitive Landscape

The key players in the industry includes:

• 3M Co.
• DuPont de Nemours Inc.
• Kohler Co.
• Rockwool A/S
• Bunnings Australia
• B&Q Limited
• Miniso Australia
• Others

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