New Zealand Home Improvement Market Report Size Share Growth Drivers Trends Opportunities & Forecast 2025–2030

New Zealand Home Improvement Market Overview

• The New Zealand Home Improvement Market is valued at USD 4.8 billion, based on a five-year historical analysis and benchmarking against the national interior design, renovation, and DIY and hardware retail segments. This growth is primarily driven by increasing consumer spending on home renovations, a surge in property ownership, and a growing trend towards sustainable living, supported by steady expansion in residential construction activity. The market has seen a significant uptick in demand for energy-efficient products and smart home technologies, as homeowners increasingly invest in insulation, efficient heating and cooling, and connected devices to improve comfort and reduce energy costs.
• Auckland, Wellington, and Christchurch are the dominant cities in the New Zealand Home Improvement Market. Auckland leads due to its large population base and high property values, which underpin a high level of renovation and upgrade activity. Wellington's active housing market and strong professional services economy, together with Christchurch's ongoing renewal and remodeling of the housing stock following earlier seismic events, continue to support robust demand for home improvement projects in these centres. These factors make the three cities key hubs for building supplies, trade services, and renovation-focused retailers within the national home improvement ecosystem.
• In 2022, the New Zealand Government introduced new energy efficiency requirements for housing through amendments to clause H1 Energy efficiency of the Building Code, under the Building Act 2004, issued by the Ministry of Business, Innovation and Employment (MBIE). These H1 Energy Efficiency provisions set higher minimum insulation levels and performance requirements for building envelopes, windows, and heating systems in new homes and significant alterations, with staged implementation dates from 2022. The regulation aims to enhance the sustainability and thermal performance of residential buildings, encouraging greater use of energy-efficient materials, glazing, and technologies, and thereby shaping product choices in the home improvement sector.

New Zealand Home Improvement Market Segmentation

By Project Type:The project type segmentation includes various categories such as interior remodeling, exterior upgrades, energy efficiency improvements, repairs, smart home upgrades, outdoor projects, and cosmetic enhancements. This reflects the mix of renovation and remodeling work observed across the New Zealand interior design and renovation markets. Among these, interior remodeling, particularly kitchen and bathroom renovations, dominates the market due to the high return on investment and strong homeowner preference for modern, functional, and open-plan spaces. The trend towards open-plan living, integrated indoor–outdoor areas, and the incorporation of smart appliances, lighting, and environmental controls in home design further supports growth in this segment.

By Customer Type:The customer type segmentation encompasses owner-occupied residential, residential investment, small builders, commercial properties, and government housing providers. The owner-occupied residential segment is the largest, consistent with the predominance of homeowners in renovation and interior design spending in New Zealand. It is driven by homeowners investing in renovations to increase property value, improve thermal comfort, and enhance living conditions, including adaptations for working from home. This trend is supported by an active housing market, the availability of renovation finance through mortgage top-ups, and a growing emphasis on home personalization and lifestyle-focused upgrades, making this segment a key focus for retailers, trades, and design professionals in the market.

New Zealand Home Improvement Market Competitive Landscape

The New Zealand Home Improvement Market is characterized by a dynamic mix of regional and international players. Leading participants such as Bunnings Warehouse, Mitre 10, PlaceMakers, The Warehouse Group, Resene, DuluxGroup, Carter Holt Harvey, Plumbing World, ITM (Independent Timber Merchants Co-operative), Firth Industries, GIB (Winstone Wallboards), Fletcher Building, APL Window Solutions (Aluminium Profiles Ltd), Steel & Tube Holdings, HPM Legrand New Zealand contribute to innovation, geographic expansion, and service delivery in this space.

New Zealand Home Improvement Market Industry Analysis

Growth Drivers

• Increasing Home Renovation Activities:The New Zealand home improvement market is experiencing a surge in renovation activities, with over NZD 3.5 billion spent on renovations in the future. This trend is driven by homeowners seeking to enhance property value and adapt to changing lifestyles. The average renovation cost per household has risen to approximately NZD 27,000, reflecting a growing willingness to invest in home upgrades. This increase is supported by favorable housing market conditions and a robust real estate sector, which saw a 9% increase in property values in the future.
• Rising Disposable Income:New Zealand's disposable income has seen a steady increase, reaching NZD 1,250 per week in the future, up from NZD 1,150 in the previous year. This rise in disposable income allows consumers to allocate more funds towards home improvement projects. As households experience financial growth, they are more inclined to invest in renovations and upgrades, contributing to the overall market expansion. The increase in disposable income is also supported by a low unemployment rate of 3.2%, which enhances consumer confidence and spending power.
• Expansion of E-commerce Platforms:The growth of e-commerce platforms has revolutionized the home improvement market in New Zealand, with online sales reaching NZD 1.5 billion in the future. This shift allows consumers to access a wider range of products and services conveniently. The increasing penetration of high-speed internet, which stands at 97% in urban areas, facilitates this trend. Additionally, the rise of mobile shopping has made it easier for consumers to compare prices and find the best deals, further driving market growth as more people opt for online purchases.

Market Challenges

• Supply Chain Disruptions:The New Zealand home improvement market faces significant supply chain disruptions, exacerbated by global events such as the COVID-19 pandemic. In the future, 65% of construction firms reported delays in material deliveries, impacting project timelines and costs. These disruptions have led to increased lead times for essential materials, with some experiencing delays of up to 10 weeks. Such challenges hinder the ability of contractors and homeowners to complete renovations on schedule, ultimately affecting market growth.
• High Material Costs:The rising costs of construction materials pose a significant challenge to the home improvement market. In the future, the price of timber increased by 12%, while steel prices surged by 18%, driven by global demand and supply constraints. These escalating costs have resulted in an overall increase in renovation budgets, with average project costs rising by NZD 6,000. Consequently, many homeowners are reconsidering or delaying their renovation plans, which could slow market growth in the coming years.

New Zealand Home Improvement Market Future Outlook

The New Zealand home improvement market is poised for continued growth, driven by increasing consumer interest in sustainable living and smart home technologies. As more homeowners prioritize eco-friendly renovations, the demand for green building materials and energy-efficient solutions is expected to rise. Additionally, the expansion of e-commerce platforms will likely enhance accessibility to home improvement products, further stimulating market activity. With a focus on innovation and sustainability, the industry is set to adapt to evolving consumer preferences and technological advancements in the future.

Market Opportunities

• Adoption of Smart Home Technologies:The integration of smart home technologies presents a significant opportunity for the New Zealand home improvement market. With an estimated 1.8 million smart home devices sold in the future, homeowners are increasingly investing in automation and energy management solutions. This trend is expected to grow as consumers seek convenience and efficiency, creating a lucrative market segment for innovative home improvement products.
• Increased Investment in Green Building:The rising emphasis on sustainability is driving increased investment in green building practices. In the future, the green building sector in New Zealand attracted NZD 600 million in investments, reflecting a growing commitment to environmentally friendly construction. This trend is likely to continue, providing opportunities for businesses that specialize in sustainable materials and energy-efficient solutions, aligning with consumer preferences for eco-conscious home improvements.