High-end renovation spending continues to climb

Home renovation activity remained steady in 2025, with spending on larger projects continuing to increase, according to the latest findings from Houzz. The study found that 54% of homeowners undertook renovation projects during the year, demonstrating continued interest in updating and improving existing homes despite ongoing economic uncertainty and rising construction costs. While overall renovation activity remained relatively consistent, spending among homeowners undertaking the most expensive projects continued to grow.

Among the top 10% of renovation projects, spending increased to $150,000 in 2025, compared with $140,000 the previous year. The increase reflects continued investment in major home improvements, particularly among homeowners willing to commit substantial budgets to their properties. These larger projects represent an important segment of the renovation market, where spending has continued to rise even as homeowners face higher material prices, labor costs and other financial considerations.

The report also found that professional involvement remained a central part of home renovation activity. More than nine in 10 homeowners who renovated in 2025 hired professionals to assist with their projects, highlighting the continued reliance on outside expertise for residential improvements. From smaller updates to extensive renovations, professional services remain a significant component of how homeowners approach improvements to their properties.

Looking ahead, Houzz reported a slight decline in the share of homeowners planning renovation projects in 2026, suggesting some moderation in future activity. Nevertheless, the continued growth in spending on high-end projects indicates that substantial investments in existing homes remain a notable part of the market. Together, the findings present a picture of a renovation industry characterized by steady participation, strong professional involvement and rising expenditures among homeowners undertaking the largest projects.

 

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