No.3877
Home Renovation Market in Japan: Key Research Findings 2025
Home Renovation Market Size Sized at 7.3 Trillion Yen in 2024, Projected to Level Off in 2025
Yano Research Institute (the President, Takashi Mizukoshi) carried out a survey on the domestic home renovation market and found out the current status, trends of market players, and future outlook.
Market Overview
The size of the home renovation market was estimated at 7.347 trillion yen in 2024, down 0.5% from the preceding year. Looking into the market by segment, renovations (total of renovations covering more than 10 square meters and renovations covering 10 square meters or less) declined by 3.5% on year-on-year basis, while facility repairs and maintenance segment edged up by 0.4% and furniture and interior segment dropped by 5.6%.In 2024, the number of renovation closings declined mainly due to rising prices that adversely impacted consumer behavior. On the other hand, price per closing rose due to the increase in building material costs and labor prices, as well as to subsidy programs that encouraged homeowners to renovate their houses to last longer with improved energy efficiency. The increase in price per project offset the decline in the number of closings, resulting in minimizing the decline in the home renovation market size.
Noteworthy Topics
Mergers and Acquisitions Gain Momentum in Home Renovation Industry
In recent years, the home renovation industry has seen a rise in mergers and acquisitions (M&A). This trend is largely driven by the aging of business owners at small and mid-sized construction and renovation companies, many of whom lack suitable successors. At the same time, companies seeking to expand sales by reaching new customer segments and entering new markets are increasingly turning to M&A as a faster path to business growth.
At the industry level, further challenges have become evident, including shortages of in-house talent, subcontractors, and skilled construction workers, along with rising costs for building materials and labor. Looking ahead, business restructuring through M&A is expected to gain further momentum as companies turn to it as a potential solution to these issues.
Future Outlook
The market size of home renovation is projected to decline by 0.7% to attain 7.3 trillion yen in 2025.
As in the previous year, the market anticipates a decline in the number of renovation projects in 2025 due to rising building material costs. However, this decline is expected to be moderate, as higher project values are likely to offset the reduction in volume. Consequently, overall market growth is projected to remain flat or only slightly negative.
Research Outline
2.Research Object： Companies in home renovation business
3.Research Methogology： Face-to-face interviews by our expert researchers, supplementary survey via telephone or mail, and literature research
What is the Home Renovation Market?
In this report, the home renovation market is sized using data from the Statistics on Housing Starts published by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT); the Chronology of Family Income and Expenditure and Basic Resident Registration Network System published by the Ministry of Internal Affairs and Communications (MIC); and Estimated Number of Households in Japan published by the National Institute of Population and Social Security Research.
The home renovation market in this report refers to renovation works commissioned and paid for by residents of the property. Note that such renovation works include repairing or upgrading an existing homes while largely retaining its basic structure and size, as well as extensions and reconstruction work involving increases in floor area or substantial modifications to a structure and layout.
Please also note that the market excludes renovations undertaken by owners of rental properties to attract tenants, renovations of company-owned residences, and large-scale repair projects for entire apartment buildings funded through repair reserve funds.
The home renovation market is segmented into four categories: (1) renovation works covering more than 10 square meters, (2) renovation works covering 10 square meters or less, (3) facility repair and maintenance expenditures, and (4) furniture and interior expenditures.
＜Products and Services in the Market＞
(1) Renovation works covering more than 10 m2, (2) Renovation works covering 10 m2 or less, (3) Facility repair and maintenance expenditures, and (4) Furniture and interior expenditures
Published Report
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