Home Renovation Activity Stays Strong in 2025 as High-End Projects Gain Momentum

Why It Matters

The sustained renovation pace signals robust consumer confidence and fuels demand for professional services, while the shift toward higher‑budget projects reshapes market dynamics for suppliers and contractors.

Key Takeaways

• 54% of U.S. homeowners renovated in 2025
• Median renovation spend held at $20,000 in 2025
• Top 10% projects exceed $150,000, driving high‑end growth
• Half of homeowners plan lower $15,000 spend for 2026
• 91% hire professionals; general contractors most used at 29%

Pulse Analysis

The 2026 Houzz & Home Study shows that home renovation remains a cornerstone of U.S. consumer spending, even as the broader economy faces uncertainty. More than half of homeowners tackled projects in 2025, keeping the sector at historic levels. Analysts point to pent‑up demand—homeowners finally have the time and financial bandwidth to act on long‑deferred upgrades—as the primary catalyst. This resilience underscores the importance of the housing market as a driver of discretionary spending, with implications for related industries ranging from building materials to interior design.

A notable trend is the surge in high‑end renovations. While the median spend stayed at $20,000, the top decile of projects surpassed $150,000, reflecting a willingness among affluent homeowners to invest heavily in "forever homes." This shift aligns with survey findings that 61% of owners expect to stay in their homes for 11 years or more, prompting them to prioritize quality and longevity over short‑term fixes. Consequently, demand for premium fixtures, custom cabinetry, and high‑performance materials is rising, prompting suppliers to adjust inventory and pricing strategies to capture this lucrative segment.

For contractors and professional service providers, the data presents both opportunity and challenge. With 91% of renovators hiring professionals—general contractors leading at 29%—the sector can expect continued work pipelines, especially in kitchens, which still command the longest planning and construction timelines. However, budget overruns are common; 37% of homeowners exceeded their budgets, often due to costlier materials or scope expansions. Professionals who offer transparent cost estimates and flexible project management will be better positioned to retain clients and mitigate financial risk, while suppliers must balance inventory levels to avoid shortages that could further inflate project costs.