No.3877
Home Renovation Market in Japan: Key Research Findings 2025
Home Renovation Market Size Projected to be Worth 7.3 Trillion Yen in 2024, Levels 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 home renovation market was estimated at 7,347,000 million yen in 2024, down 0.5% from the preceding year. Looking into the market by segment, renovations (total of renovation for space over 10 square meters and renovation for space 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?
The home renovation market in this research is defined as the market of renovations conducted for and paid by residents. Therefore, renovations of rented homes by their owners for the purpose of attracting tenants, renovations of company-owned residence, and large-scale repair works of entire apartment building by use of reserve fund for repairs, are not included. The home renovation market in this research indicates the following four categories: 1) Renovation of space over 10 square meters, 2) Renovation of space 10 square meters or less, 3) Facility repairs and maintenance costs, and 4) Furniture and interior costs.
In this survey, we estimated the size of the house renovation market based on Statistics on Housing Starts by MLIT, Chronology of Family Income and Expenditure and Basic Resident Registration Network System by MIC and Estimated number of households in Japan by National Institute of Population and Social Recurity Research.
＜Products and Services in the Market＞
1) Renovation of space over 10 square meters, 2) Renovation of space 10 square meters or less,3) Facility repairs and maintenance costs, 4) Furniture and interior costs
Published Report
Contact Us
The copyright and all other rights pertaining to this report belong to Yano Research Institute.
Please contact our PR team when quoting the report contents for the purpose other than media coverage.
Depending on the purpose of using our report, we may ask you to present your sentences for confirmation beforehand.