Houzz: Renovation plans surge for 2026 despite economic challenges
PALO ALTO, Calif. — Renovation demand remains resilient despite ongoing economic uncertainty, according to the 2026 U.S. Houzz Renovation Plans Report. The recently published report shows more than nine in 10 U.S. homeowners (91%) plan to move ahead with their renovation projects next year.
Meanwhile, 67% of homeowners expect to expand the scope of their projects, while 33% said they were either unsure about making changes or keeping their plans as originally designed.
Marine Sargsyan, head of economic research at Houzz, said since 2012 home equity has grown faster than mortgage debt, giving homeowners financial flexibility to invest in their spaces. At the same time, a shortage of U.S. housing supply persists, and the housing stock is aging, with half of the homes being 40 years old or older.
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“These long-term structural trends, paired with homeowners’ desire to stay put and personalize their living spaces, continue to support renovation activity, even as they navigate inflation and a shifting economic landscape,” she said. “Homeowners are committed to their planned projects in 2026, fully aware of the challenges ahead.”
Looking back, the 2025 survey showed 44% of respondents had completed their renovation projects, while 42% were in the midst of or about to start work. 14% of respondents delayed or canceled their projects.
Among those who held off or canceled their projects, the most common reason cited was that the projects were not urgent (37%). Other concerns included soaring prices (17%), budget constraints (17%) and economic uncertainty (16%).
Commitment to properties driving renovation into 2026
Two-thirds or 62% of homeowners expect to remain in their homes for 11 years or more after renovating, and 45% consider their current home their “forever” home. Only 4% anticipate moving within the next year. Return on investment were reasons cited for renovation.
The data revealed that nearly four in five homeowners said they want to stay in their current home and same neighborhood, noting that personalization plays a major role with many homeowners tailoring their space and incorporating custom features to meet their changing needs.
Among households earning $150,000 to $200,000, 64% describe themselves as very confident about moving ahead with renovations heading into 2026. By contrast, among households earning between $50,000 and $100,000, only 32% reported being very confident.
Other highlights from the report include:
- More than half (54%) say they plan to maintain the same project scope heading into 2026, and 13% plan to expand it. High-budget households are more bullish, with 28% of homeowners planning projects over $50,000 intending to increase their scope.
- Majority of homeowners expect some challenges during their project (93%), with rising product and material costs topping the list (63%), followed by higher labor costs (31%) and finding available professionals (25%).
- Nine in 10 homeowners plan to work with professionals in 2026 (93%), and that number is even more widespread among projects of more than $50,000.
The online survey was fielded to U.S. Houzz users from October 10-22.
Houzz is a platform for construction and design that empowers industry professionals and homeowners with the tools they need to make their project a success. The company offers a cloud-based, AI-powered tool, Houzz Pro.
