Annual spending for improvements and repairs to owner-occupied homes is expected to decline by 7.7% through the third quarter of 2024, according to the Leading Indicator of Remodeling Activity (LIRA) by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. “The ongoing weakness in the housing market caused by high interest rates and low supply of existing homes is expected to weigh on remodeling activity next year,” said Carlos Martín, project director. Abbe Will, associate project director, added, “The level of annual spending on improvements and repairs is projected to fall from $489 billion [in Q3] to $452 billion over the coming four quarters.”

Despite the challenges, many in the closets and home organization industry are optimistic. This year’s State of the Industry survey by Closets & Organized Storage magazine found more than two-thirds of respondents expect 2023 sales to exceed 2022, and they are equally bullish on 2024.

Also positive, a study by Mordor projects the home organizer and storage market, estimated at $11.65 billion in 2022, to grow at 3.5% CAGR  through 2028; modular units are the dominant product.

Click on the infographic to enlarge. Find more market data in the December 2023 FDMC Wood Industry Almanac.

Quick Stats (Includes items not shown in print.)
• Laminate/melamine and solid wood/veneer tied for the top material choice for organized storage projects, each accounting for roughly 32% sold this year, according to the Closets & Organized Storage State of the Industry survey. Specialty materials, including mirrors, leather, glass and metal, accounted for 20%, followed by wire projects at 19%.  

• The cost recovery for a closet remodeling project is 83%, per the 2022 Remodeling Impact Report by the National Association of the Remodeling Industry (NARI) and the National Association of Realtors Research Group.

• According to Hanover Research’s 2023 Upgraded Closet Study in New Home Construction, prepared for ClosetMaid, topping the list of desired upgrades are: more general storage space (50%), shoe storage (45%), more hanging storage (43%), flexible spacing (43%), drawers (42%) and mirrors with lights (39%). The study also found on average, homeowners are willing to pay 11% more for new homes with upgraded closets.

• Home offices were the most popular project type sold in 2023, representing 50.4% of all sales by respondents in the Closets & Organized Storage State of the Industry survey. Specialty rooms were a close second at 49.6%, followed by closet systems at 43.8%, laundry rooms at 40.47%, and pantries at 37.5%.

• The global home office furniture market is expected to grow from $29.001 billion USD in 2022 to $43.165 billion in 2027 at a CAGR of 8.3%. According to an update from The Business Research Co., the market is expected to grow at a CAGR of 8.4% from 2027 to 2032 and reach $64.751 billion.

• The global kids’ storage furniture market is projected to grow from an estimated $9.2 billion USD in 2023 to $13.9 billion in 2031 at a CAGR of 6.4%, according to Transparency Market Research.

• The global garage organization and storage market size is expected to grow from $25.25 billion USD in 2023 to $47.81 billion by 2032 (CAGR 7.3%), according to Research and Markets.

• Walk-in (59%), built-in (53%) and butler’s (54%) pantries will be the most requested styles over the next three years, according to respondents of the NKBA/KBIS 2024 Design Trends study. Also receiving votes were: wall pantry (33%), full-working pantry (31%), pullout pantry (16%), open-shelf pantry (12%), and a standalone/freestanding pantry (9%).

Market Data Sources: Closets & Organized Storage/Woodworking Network, Association of Closet and Storage Professionals, Houzz, National Association of the Remodeling Industry (NARI), National Association of Realtors, Hanover Research, ClosetMaid, Mordor Intelligence, Harvard Joint Center for Housing Studies/LIRA, National Kitchen & Bath Assn. (NKBA), Research and Markets, The Business Research Co., Transparency Market Research. Category: Closets & home organization includes: walk-in and reach-in closets, garages, mudrooms, pantries, laundry rooms and related products.

More data on North American woodworking and the specific wood product market segments can be found in the December 2023 FDMC Wood Industry Almanac. Also, find market data year-round at WoodworkingNetwork.com/news/almanac-market-data.