2026-05-15

The Wave of Home Renovation: Policy Dividends Ignite the Trillion-Yuan Market

Existing housing renovation is emerging as the second growth curve of the home furnishing industry. Strongly empowered by urban renewal and home renovation subsidy policies, old housing renovation has moved from the sidelines to the mainstream. It drives the industry to shift from incremental expansion to in-depth exploration of the stock market, fully unlocking a trillion-yuan blue ocean market.

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I. Policy Empowerment: Golden Window for Renovation, Unleashing Trillion-Level Demand

The state continues to advance the urban renewal strategy. The Ministry of Housing and Urban-Rural Development promotes the renovation of 1 million urban village and dilapidated housing units, directly stimulating a home consumption market worth over one trillion yuan.

Six government departments including the Ministry of Commerce jointly launched the home replacement policy, offering renovation, kitchen and bathroom subsidies of up to 30%. Combined with local supporting policies, consumer potential has been fully activated.

Intensive Implementation of Local Policies

Beijing: Launched renovation service packages, with enterprise subsidies up to 500,000 yuan.
Shanghai: Issued home consumption coupons of 10%-15% to encourage green consumption.
Guangdong: Provided low-interest renovation loans up to 300,000 yuan.
Hubei & Fujian: Subsidies of up to 30% for smart home and elderly-friendly renovation.

Data from Shell Research Institute shows that the existing housing renovation market will reach 3.34 trillion yuan in 2025, accounting for 65% of the overall decoration market. The industry has officially entered an era of stock competition.

II. Market Scale: 300 Million Existing Housing Units Drive Renovation Beyond Trillion Scale

China has approximately 300 million urban existing housing units. Among them, old communities built before 2000 account for over 40%, covering a floor area of 6.6 billion square meters.

The old renovation market will exceed 1.2 trillion yuan in 2025;
Home furnishing consumption accounts for about 30%, reaching 360 billion yuan;
Partial kitchen & bathroom renovation, smart upgrading and elderly-friendly transformation have become core growth drivers, with an annual compound growth rate exceeding 25%.

III. Brand Layout: From Product Sales to Service-oriented Full-Link Innovation

Leading enterprises are accelerating their layout in the renovation track, transforming from single-product sales to one-stop home renewal service providers:

China Home Renovation Alliance: Jointly established by 15 leading brands including Saint Pauluo, Sofia and Huawei Smart Home, integrating doors & windows, customization, smart technology and coating services across the whole industrial chain.
Red Star Macalline: Launched a one-stop renovation platform providing housing inspection, solution matching and full-case delivery; its renovation business grew by 87% year-on-year.
Easyhome: Cooperated with Huawei to build AI smart renovation, allowing old furniture to deduct 30% of renovation costs.
Oppein Home: Launched 7-day modular kitchen and bathroom renewal, with renovation business accounting for 18% of its total revenue.

Mainstream Innovative Service Modes

Full-cycle service: On-site inspection → AI design → Dust-free construction → 3-year warranty.
Digital efficiency improvement: 3D scanning, VR preview and AI rendering boost work efficiency by 50%.
Green construction: Eco-friendly materials plus enclosed operation achieve a customer satisfaction rate of 92%.
Asset-light expansion: Brands empower local decoration companies to rapidly penetrate third- and fourth-tier cities.

IV. Track Opportunities: Smart Home, Partial Renovation and Elderly-Friendly Upgrades Become Growth Engines

Renovation has spawned diverse segmented opportunities, with three leading tracks:

Rising penetration of smart homes: Smart device penetration in renovation projects reached 35%, up from 22% in 2022.
Booming mid-to-high-end renewal: High-net-worth groups set a renovation budget of 100,000–300,000 yuan, driving surging demand for high-end customization and whole-house smart solutions.
Surging demand for elderly-friendly renovation: The silver economy fuels sales of handrails, anti-slip facilities, sensor lighting and other senior-oriented products.
Untapped blue ocean in third- and fourth-tier cities: Higher proportion of old communities and stronger policy subsidies make them a must-compete market for brands.
Rising value of design: Soaring demand for space planning and storage optimization lifts design unit prices by 30%.

V. Future Trends: From Space Renewal to Lifestyle Upgrade

Renovation is more than simple refurbishment; it is a reconstruction of lifestyle. Three clear future trends have emerged:

Scenario-based customization: Themed renovation solutions for parent-child living, pet-friendly space, minimalism and Zen-style living will become mainstream.
Popularization of digital technology: AI design, VR preview and remote construction supervision lower the threshold of home renovation.
Green circular closed loop: Waste material recycling, furniture refurbishment and eco-friendly material promotion support national carbon peaking and carbon neutrality goals.

Conclusion

Amid the wave of old housing renovation, the home furnishing industry is shifting from scale competition to value competition. Driven by policy dividends, rigid stock demand and consumption upgrading, the trillion-yuan renovation market has fully opened.

Only by accurately capturing market demand, efficiently integrating industrial resources and continuously innovating services can enterprises seize opportunities in the stock market and unlock new growth momentum.