Market Overview

The home renovation market was estimated at 7,357,500 million yen in 2023, up by 0.6% from the preceding year. Viewing by category, while “refurbishments” (as a total of refurbishment of space more than 10 square meters as well as refurbishment of space 10 square meters or less) rose by 5.2% on year-on-year basis, “facility repairing and maintenance” grew only by 0.3% and “furniture and interior” declined by 0.6% on the same basis.

In accordance with the reclassification of COVID-19 to class 5 disease under the Infectious Disease Act in 2023, Japanese consumer became eager to spend time and money outside the home, such as dining out and traveling, rather than spending for home-related matters like house renovation and purchasing home electric appliances, which was popular during the pandemic. At the same time, the market saw the rise in price of home renovation per project due to soaring building material prices and labor prices, and the increasing demand for high performance renovation. As a result, the market size stayed at the same level to, or marginally larger than, that of the previous year.

Noteworthy Topics

Challenges in Securing, Training, and Retaining Human Resources

Since the home renovation industry is labor intensive, the sales of home renovation companies increase in proportion to the number of salespeople. However, as the job market is currently the “selling market”, neither new graduates nor mid-career professionals are easy to hire. Securing and training staffs has become a challenge across the industry. To attract candidates, many employers have introduced various programs for improving work-life balance and shift towards flexible workstyles.

Moreover, seeing that conventional business model of “more people = more sales” is no longer working against the backdrop of staff shortage, some home renovation businesses have adopted new systems for sales order management and construction management to streamline operation, strive for increasing sales per customer using sales tools.

Future Outlook

The market size of home renovation in 2024 is projected to decline by 3.2% to 7.1 trillion yen.


The rise of the price per deal is expected to continue against the backdrop of soaring costs and increasing demand for high performance renovation. Nevertheless, as the demand for renovation is projected to fall as a reaction to the increase during the covid crisis, we forecast the size of home renovation market to diminish for 2024.

Research Outline