8 Home Remodeling Trends to Watch in 2026
Renovation activity remains stable as budgets, financing and plans shift, the 2026 U.S. Houzz & Home Study shows
Home renovation activity held steady in 2025 as more than half of U.S. homeowners undertook projects and median spend held at $20,000, according to the just-released 2026 U.S. Houzz & Home Study. High-end renovations gained ground, underscoring ongoing demand even as some homeowners grow more cautious about what’s ahead. For 2026, a slightly smaller share of homeowners plan to renovate, and those who do expect to spend less.
“Home renovation continues at historic levels even as homeowners take a more cautious approach to future projects,” says Marine Sargsyan, head of economic research at Houzz. “What’s driving this resilience is pent-up demand from homeowners who are finally able to act on long-planned renovations. At the same time, we’re seeing a clear shift toward investing in forever homes rather than moving, with many adapting their spaces to meet changing needs.”
Beyond those broad trends, the study highlights a growing share of Gen Z renovators, evolving financing habits — including increased reliance on credit cards alongside savings — and frequent budget overruns tied to upgraded choices or expanded scope. Demand for professionals also remains strong, with the vast majority of homeowners hiring help for their projects.
Here’s more from the new study.
“Home renovation continues at historic levels even as homeowners take a more cautious approach to future projects,” says Marine Sargsyan, head of economic research at Houzz. “What’s driving this resilience is pent-up demand from homeowners who are finally able to act on long-planned renovations. At the same time, we’re seeing a clear shift toward investing in forever homes rather than moving, with many adapting their spaces to meet changing needs.”
Beyond those broad trends, the study highlights a growing share of Gen Z renovators, evolving financing habits — including increased reliance on credit cards alongside savings — and frequent budget overruns tied to upgraded choices or expanded scope. Demand for professionals also remains strong, with the vast majority of homeowners hiring help for their projects.
Here’s more from the new study.
2. Homeowners Continue Planning Renovations as Activity Softens
Half of homeowners (50%) plan to undertake renovation projects in 2026, down slightly from 52% in 2025. Planned activity has also eased in other categories, with decorating at 41% (down from 44%) and repairs at 35% (down from 37%). Homebuilding remains a small share of planned activity at 3%, unchanged from 2025.
Budget expectations are also trending lower. The median planned renovation spend is $15,000 for 2026, compared with $20,000 in 2025. At the high end, the top 90th percentile comes in at $80,000, down from $85,000 the prior year.
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Half of homeowners (50%) plan to undertake renovation projects in 2026, down slightly from 52% in 2025. Planned activity has also eased in other categories, with decorating at 41% (down from 44%) and repairs at 35% (down from 37%). Homebuilding remains a small share of planned activity at 3%, unchanged from 2025.
Budget expectations are also trending lower. The median planned renovation spend is $15,000 for 2026, compared with $20,000 in 2025. At the high end, the top 90th percentile comes in at $80,000, down from $85,000 the prior year.
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3. Time and Financial Readiness Remain Top Renovation Drivers
Time and financial readiness remain the top triggers for renovation activity. The share of renovating homeowners citing finally having the time to renovate is unchanged year over year at 40%, while those citing financial readiness ticks up slightly to 36% from 35%.
Other motivations are largely stable. Customizing a recently purchased home accounts for 20% of renovations, while adapting to lifestyle changes stands at 16%, both slightly lower than in 2024. Addressing damage tied to home age or other factors rises to 19% from 17%. Planning to sell edges up to 8%, and natural-disaster-related repairs remain unchanged at 7%.
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Time and financial readiness remain the top triggers for renovation activity. The share of renovating homeowners citing finally having the time to renovate is unchanged year over year at 40%, while those citing financial readiness ticks up slightly to 36% from 35%.
Other motivations are largely stable. Customizing a recently purchased home accounts for 20% of renovations, while adapting to lifestyle changes stands at 16%, both slightly lower than in 2024. Addressing damage tied to home age or other factors rises to 19% from 17%. Planning to sell edges up to 8%, and natural-disaster-related repairs remain unchanged at 7%.
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4. Gen Zers Gain Ground in Renovation Activity
Baby Boomers account for the largest share of homeowners undertaking renovation projects in 2025 (54%), though this is down 5 percentage points from the previous year. Gen Xers follow at 34%, up 5 points year over year, while Millennials edge up from 8% to 10%. Seniors account for 2% of renovating homeowners.
Gen Z homeowners now represent 0.5% of renovators, up from 0.2% in 2024. They are significantly more likely to renovate following a recent home purchase (63%) compared with Millennials (31%), Gen Xers (19%) and Baby Boomers (18%). Among Gen Z renovators, 33% cite lifestyle changes as a trigger for renovation, while 22% point to home damage.
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Baby Boomers account for the largest share of homeowners undertaking renovation projects in 2025 (54%), though this is down 5 percentage points from the previous year. Gen Xers follow at 34%, up 5 points year over year, while Millennials edge up from 8% to 10%. Seniors account for 2% of renovating homeowners.
Gen Z homeowners now represent 0.5% of renovators, up from 0.2% in 2024. They are significantly more likely to renovate following a recent home purchase (63%) compared with Millennials (31%), Gen Xers (19%) and Baby Boomers (18%). Among Gen Z renovators, 33% cite lifestyle changes as a trigger for renovation, while 22% point to home damage.
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5. Homeowners Turn More to Credit Cards as Financing Mix Evolves
Savings remain the primary funding source for renovation projects, used by 84% of renovating homeowners. More than a third (34%) also rely on credit cards, up 5 percentage points year over year.
Financing becomes more varied among higher-budget projects. Homeowners spending more than $50,000 are more likely to use home equity loans (23%) and proceeds from a home sale (20%) compared with those with lower budgets.
Other funding sources are used less frequently overall. Thirteen percent of homeowners report using a secured home loan, including home equity lines of credit (7%), cash-out refinancing (3%) and home equity loans (3%). Ten percent tap home sale proceeds, while gifts or inheritances, insurance payouts and tax refunds are each cited by 5%. Smaller shares use unsecured loans (3%) or retirement plan loans (2%).
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Savings remain the primary funding source for renovation projects, used by 84% of renovating homeowners. More than a third (34%) also rely on credit cards, up 5 percentage points year over year.
Financing becomes more varied among higher-budget projects. Homeowners spending more than $50,000 are more likely to use home equity loans (23%) and proceeds from a home sale (20%) compared with those with lower budgets.
Other funding sources are used less frequently overall. Thirteen percent of homeowners report using a secured home loan, including home equity lines of credit (7%), cash-out refinancing (3%) and home equity loans (3%). Ten percent tap home sale proceeds, while gifts or inheritances, insurance payouts and tax refunds are each cited by 5%. Smaller shares use unsecured loans (3%) or retirement plan loans (2%).
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6. Budgets Are Frequently Exceeded
In 2025, 37% of renovating homeowners exceeded their budgets, compared with 35% who stayed on target and 3% who came in under. Three-quarters (75%) set an initial budget, while one-quarter (25%) did not establish one before starting their projects.
Budget-setting has remained relatively steady over time, at 75% in 2025 compared with 76% in 2023 and 73% in 2021.
Among those who go over budget, higher-than-expected costs for products or services is the most common factor (52%). Other drivers include selecting higher-end materials than originally planned (35%), unanticipated project complexity (32%), changes in project scope or design (31%) and construction-related issues (22%).
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In 2025, 37% of renovating homeowners exceeded their budgets, compared with 35% who stayed on target and 3% who came in under. Three-quarters (75%) set an initial budget, while one-quarter (25%) did not establish one before starting their projects.
Budget-setting has remained relatively steady over time, at 75% in 2025 compared with 76% in 2023 and 73% in 2021.
Among those who go over budget, higher-than-expected costs for products or services is the most common factor (52%). Other drivers include selecting higher-end materials than originally planned (35%), unanticipated project complexity (32%), changes in project scope or design (31%) and construction-related issues (22%).
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7. Nearly a Third of Homeowners Take on $50K+ Renovation Projects
Nearly a third of homeowners (31%) undertake renovation projects costing $50,000 or more, including 14% in the $50,000 to $99,999 range (down from 15% in 2024 and 16% in 2023) and 17% exceeding $100,000 (up from 16% in 2024 and back in line with 17% in 2023).
At the lower end, 14% of homeowners spend between $1,000 and $4,999, up slightly from 13% in prior years. Projects in the $5,000 to $9,999 range remain steady at 13%.
Midrange activity shows modest shifts. The $10,000 to $24,999 segment accounts for 23% of renovations, down from 25% in 2024 and in line with 2023, while the $25,000 to $49,999 range edges up to 19% from 18% in previous years.
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Nearly a third of homeowners (31%) undertake renovation projects costing $50,000 or more, including 14% in the $50,000 to $99,999 range (down from 15% in 2024 and 16% in 2023) and 17% exceeding $100,000 (up from 16% in 2024 and back in line with 17% in 2023).
At the lower end, 14% of homeowners spend between $1,000 and $4,999, up slightly from 13% in prior years. Projects in the $5,000 to $9,999 range remain steady at 13%.
Midrange activity shows modest shifts. The $10,000 to $24,999 segment accounts for 23% of renovations, down from 25% in 2024 and in line with 2023, while the $25,000 to $49,999 range edges up to 19% from 18% in previous years.
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8. Nearly All Homeowners Hire Professionals for Renovations
Nine in 10 renovating homeowners (91%) hire at least one professional for their projects, a share consistent with recent years and slightly above 2024 (90%).
Specialty service providers — including electricians, A/C and heating specialists, plumbers, painters and carpenters — hired directly by renovating homeowners are the most commonly hired professionals, used by 48% of homeowners, down slightly from 49% in 2024. Homeowners who use these providers hired an average of 1.6 per project in 2025.
Hiring across other professional categories remains steady. Construction professionals — including general contractors, builders, design-build firms and kitchen or bath remodelers — are engaged by 41% of homeowners, up slightly from 40%. Design-related professionals, such as architects, interior designers and landscape or lighting designers, hold steady at 22%.
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Nine in 10 renovating homeowners (91%) hire at least one professional for their projects, a share consistent with recent years and slightly above 2024 (90%).
Specialty service providers — including electricians, A/C and heating specialists, plumbers, painters and carpenters — hired directly by renovating homeowners are the most commonly hired professionals, used by 48% of homeowners, down slightly from 49% in 2024. Homeowners who use these providers hired an average of 1.6 per project in 2025.
Hiring across other professional categories remains steady. Construction professionals — including general contractors, builders, design-build firms and kitchen or bath remodelers — are engaged by 41% of homeowners, up slightly from 40%. Design-related professionals, such as architects, interior designers and landscape or lighting designers, hold steady at 22%.
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General contractors remain the most commonly hired construction professionals, engaged by 29% of renovating homeowners in 2025 — more than builders (13%) and well above kitchen and bath remodelers (8%). Design-build firms account for a smaller share of hiring at 5%, though this is up 2 percentage points year over year.
Hiring among design-related professionals is more evenly distributed. Interior designers and architects are each engaged by 8% of homeowners, followed by kitchen and bath designers (7%) and landscape architects or designers (6%). Lighting designers are hired by 2% of homeowners.
See more results and download the full study
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Hiring among design-related professionals is more evenly distributed. Interior designers and architects are each engaged by 8% of homeowners, followed by kitchen and bath designers (7%) and landscape architects or designers (6%). Lighting designers are hired by 2% of homeowners.
See more results and download the full study
More on Houzz
Read more stories
Browse photos for ideas
Find home professionals
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Home renovation activity continues at levels seen in recent years, with more than half of homeowners (54%) reporting they renovated in 2025. Decorating activity is slightly lower at 52%, down from 54% in 2024, while repairs remain steady year over year at 47%.
New construction remains a niche activity, with just 3% of homeowners building from the ground up, down from 4% in each of the previous two years.
Spending trends point to overall stability. Median renovation spend held at $20,000 year over year, following a peak of $24,000 in 2023. At the high end, activity ticked up: The 90th percentile reached $150,000 in 2025, up 7% from $140,000 in 2024 and in line with the prior peak in 2023.
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 study gathered these median spending figures and other details from more than 20,000 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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