5 Home Renovation Spending Trends to Know About in 2025
See what homeowners are spending on kitchens, bathrooms and other projects, according to the 2025 Houzz & Home Study
Homeowners continue to invest in significant home improvement projects — big and small — despite some groups pulling back on spending, according to the just-released 2025 U.S. Houzz & Home Study. Overall median spend among homeowners dipped to $20,000 in 2024 from its peak of $24,000 in 2023. High-end projects also saw a drop. Homeowners in the top 90th percentile spent $140,000 or more on renovations in 2024, down from $150,000 in 2023.
But diving deeper into the numbers, spending on major remodels of small kitchens and bathrooms saw meaningful increases. The median spend for major remodels of kitchens 200 square feet or smaller rose 9%, from $32,000 in 2023 to $35,000 in 2024. And median spending on major remodels of primary bathrooms 100 square feet or smaller increased by 13%, from $15,000 in 2023 to $17,000 last year.
Learn more about these findings and other home remodeling trends below.
But diving deeper into the numbers, spending on major remodels of small kitchens and bathrooms saw meaningful increases. The median spend for major remodels of kitchens 200 square feet or smaller rose 9%, from $32,000 in 2023 to $35,000 in 2024. And median spending on major remodels of primary bathrooms 100 square feet or smaller increased by 13%, from $15,000 in 2023 to $17,000 last year.
Learn more about these findings and other home remodeling trends below.
2. Kitchen Remodel Spending Holds at the High End
Nearly a quarter of renovating homeowners (24%) remodeled a kitchen in 2024; another 2% created an addition. As the graph shows, the overall median spend (left) on kitchen remodels was $22,000 in 2024, an 8% drop compared with $24,000 in 2023 but above the 2022 level of $20,000.
The graph on the right shows how the 90th percentile of spend held steady at $100,000 in 2024 compared with the previous year. That’s well above the $85,000 spend in 2022.
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Nearly a quarter of renovating homeowners (24%) remodeled a kitchen in 2024; another 2% created an addition. As the graph shows, the overall median spend (left) on kitchen remodels was $22,000 in 2024, an 8% drop compared with $24,000 in 2023 but above the 2022 level of $20,000.
The graph on the right shows how the 90th percentile of spend held steady at $100,000 in 2024 compared with the previous year. That’s well above the $85,000 spend in 2022.
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Here’s a look at spending for major kitchen remodels — projects that involve replacing at least all the cabinets and appliances — of kitchens 200 square feet or larger. The median spend (left) was steady at $55,000 for the third consecutive year. At the higher end of the market, spending remained elevated. The 90th percentile of spend for large kitchen remodels was $150,000 for the second consecutive year, up from $125,000 in 2022.
The 10 Most Popular New Kitchens So Far in 2025
The 10 Most Popular New Kitchens So Far in 2025
For major remodels of kitchens 200 square feet or smaller, the median spend rose 9% year over year, to $35,000 in 2024. That’s up significantly from $30,000 in 2022. For the 90th percentile of major remodels of small kitchens, spend remained at $90,000 for the second consecutive year, still a dramatic jump from $75,000 in 2022.
Where Designers Would Spend and Save in a Kitchen
Where Designers Would Spend and Save in a Kitchen
3. Premium Bathroom Upgrades Command Higher Spend
While kitchen projects historically have been the most popular renovation type, the share of homeowners remodeling a guest bathroom matched that of kitchen remodels (24%) in 2024, marking a notable shift.
But overall median spending on guest bathrooms in 2024 ($6,000; not shown in this graph) paled in comparison to the overall median spend on primary bathrooms in the same year ($13,000), even with a 13% drop compared with $15,000 in 2023, as this graph shows. On the higher end, the 90th percentile spend has steadily increased in recent years, to $47,000 in 2024.
The 10 Most Popular New Bathrooms So Far in 2025
While kitchen projects historically have been the most popular renovation type, the share of homeowners remodeling a guest bathroom matched that of kitchen remodels (24%) in 2024, marking a notable shift.
But overall median spending on guest bathrooms in 2024 ($6,000; not shown in this graph) paled in comparison to the overall median spend on primary bathrooms in the same year ($13,000), even with a 13% drop compared with $15,000 in 2023, as this graph shows. On the higher end, the 90th percentile spend has steadily increased in recent years, to $47,000 in 2024.
The 10 Most Popular New Bathrooms So Far in 2025
Here’s a look at median spending on major primary bathroom remodels —projects that involve replacing at least the cabinetry or vanity, countertops and toilet — for bathrooms 100 square feet or smaller. Overall median spending stayed steady at $25,000 for the third consecutive year.
The 90th percentile of spend for major remodels of large bathrooms climbed to $70,000, up from $60,000 in the previous two years.
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The 90th percentile of spend for major remodels of large bathrooms climbed to $70,000, up from $60,000 in the previous two years.
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For major remodels of bathrooms 100 square feet or smaller, median spending increased 13% year over year, to $17,000. Similarly, the 90th percentile of spend for small bathroom remodels rose to $45,000.
Beyond kitchens and bathrooms, median spending on several interior spaces declined notably in 2024. The median spend on the renovation of living rooms dropped 20%, from $5,000 in 2023 to $4,000 in 2024. Primary bedrooms saw a 21% drop, from $3,500 in 2023 to $2,750 in 2024. Dining rooms declined 16%, from $2,500 in 2023 to $2,100 in 2024. And most dramatically, median spend on updates to home offices decreased 50%, from $2,000 in 2023 to $1,000 in 2024.
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Beyond kitchens and bathrooms, median spending on several interior spaces declined notably in 2024. The median spend on the renovation of living rooms dropped 20%, from $5,000 in 2023 to $4,000 in 2024. Primary bedrooms saw a 21% drop, from $3,500 in 2023 to $2,750 in 2024. Dining rooms declined 16%, from $2,500 in 2023 to $2,100 in 2024. And most dramatically, median spend on updates to home offices decreased 50%, from $2,000 in 2023 to $1,000 in 2024.
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4. Baby Boomers and Gen X Remodel Most
Baby boomers continued to drive home renovations in 2024, accounting for 59% of renovating homeowners, a share that increased by 3 percentage points from 2023. Gen X homeowners accounted for 29% of renovators in 2024. That share declined by 3 percentage points from 2023, but Gen Xers remain the second-largest group of remodeling homeowners. Millennials accounted for 8% of renovating homeowners in 2024, down by 1 percentage point from the previous year. Projects undertaken by Gen Zers (0.2%) and seniors (4%), a group that encompasses people 79 and up, accounted for a small share of remodeling activity.
Baby boomers continued to drive home renovations in 2024, accounting for 59% of renovating homeowners, a share that increased by 3 percentage points from 2023. Gen X homeowners accounted for 29% of renovators in 2024. That share declined by 3 percentage points from 2023, but Gen Xers remain the second-largest group of remodeling homeowners. Millennials accounted for 8% of renovating homeowners in 2024, down by 1 percentage point from the previous year. Projects undertaken by Gen Zers (0.2%) and seniors (4%), a group that encompasses people 79 and up, accounted for a small share of remodeling activity.
This graph shows a generational breakdown of renovation spend by homeowners in 2024. The darker green bars represent a similar overall median spend among seniors ($22,000), baby boomers ($20,000) and Gen Xers ($20,000). Millennials were at the low end with a median spend of $15,000.
The lighter green bars show how in the 90th percentile of spend, Gen X renovators led the pack, allocating up to $150,000 for projects. The other groups had spends between $120,000 and $125,000.
For kitchen remodels specifically, millennials’ median spend increased from $15,000 in 2023 to $20,000 in 2024. Gen Xers saw a 12% drop in median spend, from $25,000 in 2023 to $22,000 in 2024, while baby boomers spent slightly less year over year, dropping from $24,000 in 2023 to $23,000 in 2024. Seniors also scaled back: Their median kitchen remodel spend dropped from $19,000 to $15,000.
Bathroom remodels present a mixed picture. The median spend for seniors nearly doubled, from $8,500 in 2023 to $15,300 in 2024, while the median spend for millennials declined sharply, from $12,000 to $7,500. The median spend for Gen Xers decreased from $15,000 in 2023 to $13,000 in 2024, while baby boomers remained steady year over year at $15,000.
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The lighter green bars show how in the 90th percentile of spend, Gen X renovators led the pack, allocating up to $150,000 for projects. The other groups had spends between $120,000 and $125,000.
For kitchen remodels specifically, millennials’ median spend increased from $15,000 in 2023 to $20,000 in 2024. Gen Xers saw a 12% drop in median spend, from $25,000 in 2023 to $22,000 in 2024, while baby boomers spent slightly less year over year, dropping from $24,000 in 2023 to $23,000 in 2024. Seniors also scaled back: Their median kitchen remodel spend dropped from $19,000 to $15,000.
Bathroom remodels present a mixed picture. The median spend for seniors nearly doubled, from $8,500 in 2023 to $15,300 in 2024, while the median spend for millennials declined sharply, from $12,000 to $7,500. The median spend for Gen Xers decreased from $15,000 in 2023 to $13,000 in 2024, while baby boomers remained steady year over year at $15,000.
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5. Cash Is King While Credit Slips
While homeowners overall used diverse funding sources for their 2024 renovations, the overwhelming majority (84%) tapped into their savings. Credit cards follow at 29%, a drop of 8 percentage points from 2023, suggesting a shift away from credit card financing.
Secured home loans funded 12% of projects in 2024. Home equity lines of credit (HELOCs) were the most common type of home loan (6%), followed by cash-out refinancing and general home equity loans, both at 3%.
Cash from a home sale helped 10% of homeowners fund their projects last year, while 5% of homeowners used gifts or inheritances and another 5% relied on insurance payouts. Smaller shares turned to tax refunds, unsecured loans and retirement plan loans (4%, 3% and 3%, respectively).
10 Ways to Finance a Home Remodeling Project
While homeowners overall used diverse funding sources for their 2024 renovations, the overwhelming majority (84%) tapped into their savings. Credit cards follow at 29%, a drop of 8 percentage points from 2023, suggesting a shift away from credit card financing.
Secured home loans funded 12% of projects in 2024. Home equity lines of credit (HELOCs) were the most common type of home loan (6%), followed by cash-out refinancing and general home equity loans, both at 3%.
Cash from a home sale helped 10% of homeowners fund their projects last year, while 5% of homeowners used gifts or inheritances and another 5% relied on insurance payouts. Smaller shares turned to tax refunds, unsecured loans and retirement plan loans (4%, 3% and 3%, respectively).
10 Ways to Finance a Home Remodeling Project
Looking more closely at how budgets break down among financing groups, the share of homeowners who used cash from savings for lower-budget projects ($1,000 to $5,000) rose 3 percentage points year over year, to 85%.
Among those with bigger-budget projects ($50,000 to $200,000), 81% used cash. Credit card use notably declined at both ends of the budget spectrum: by 9 percentage points, to 31%, among homeowners with smaller projects, and by 6 percentage points, to 26%, among homeowners with bigger projects.
Secured home loans, including home equity lines of credit, were three times more common among homeowners with larger projects (18%) than with smaller projects (6%), despite a decline of 5 percentage points in the share for larger projects.
Homeowners funding larger renovations also frequently tapped into cash from home sales (19%), while 9% used gifts or inheritances and 7% used insurance payouts. Tax refunds, unsecured loans and retirement plan loans were less common funding choices regardless of project size.
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Among those with bigger-budget projects ($50,000 to $200,000), 81% used cash. Credit card use notably declined at both ends of the budget spectrum: by 9 percentage points, to 31%, among homeowners with smaller projects, and by 6 percentage points, to 26%, among homeowners with bigger projects.
Secured home loans, including home equity lines of credit, were three times more common among homeowners with larger projects (18%) than with smaller projects (6%), despite a decline of 5 percentage points in the share for larger projects.
Homeowners funding larger renovations also frequently tapped into cash from home sales (19%), while 9% used gifts or inheritances and 7% used insurance payouts. Tax refunds, unsecured loans and retirement plan loans were less common funding choices regardless of project size.
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Despite some decline in spending, home remodeling activity remains strong and within historically high levels. A majority of people who took on home projects tackled renovations (54%) in 2024, down slightly from 56% in 2023. An equal share of homeowners (54%) took on decorating projects last year. For the past two years, ground-up home construction has remained steady at 4%, down from its peak of 5% in 2022.
Meanwhile, after median renovation spend increased steadily from $13,000 in 2019 to $24,000 in 2023, it dropped in 2024 to $20,000. For the 90th percentile of spend, the amount declined from $150,000 in 2023 to $140,000 in 2024.
Keep in mind that the median spend figures throughout the study have not been adjusted for inflation. Also note that “median” means that half of the respondents spent more and half spent less; it’s not the average. Economists like to reference the median, or midpoint, figure rather than the average because the average can be skewed, can be volatile year over year and can be misleadingly high or low because of a single project that costs far more or less than others.
“The softening in renovation spend reflects the impact of elevated borrowing costs and the rising prices for everyday goods and services, which limit how much homeowners can allocate toward home improvements,” says Marine Sargsyan, Houzz staff economist. “What stands out, however, is homeowners’ ongoing demand and consistent investment in sizable kitchen and bathroom upgrades. Perhaps even more telling, notable growth in spend on smaller spaces signals that even amid economic pressures, homeowners are prioritizing meaningful improvements no matter the size of the home.”
The study gathered these median spending figures and other details from more than 22,000 U.S. homeowners who responded to survey questions. The projects reported were handled with the help of pros, were DIY or combined the two approaches.
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