Even as the new build market continues to lag, a new study shows that fixing up existing homes remains a strong business.
More than half of US homeowners — 54 percent — are undertaking renovation projects, according to Houzz Inc. in its new 2026 Houzz & Home Study. The median spend was $20,000, the online newsletter reported, but the high end continues to gain momentum, with the top 10 percent of projects reaching $150,000 or more. That’s up from $140,000 in 2023, but it wasn’t all good news: Houzz reported that only half of current homeowners expect to undertake renovation projects this year, with median spending declining to $15,000 for 2026.
“Home renovation continues at historic levels, even as homeowners take a more cautious approach to future projects,” said 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.”
Houzz said that pent-up demand remains the strongest motivator for home upgrades, with 40 percent of homeowners saying they finally have the time to renovate and 36 percent reporting they now have the financial means to do so.
Renovation projects take several months from idea to completion, Houzz reported, with planning often exceeding the time spent on construction. Kitchen projects have the longest timeline overall, with an average of 9.5 months spent on planning and 5.8 months spent on construction.
While millennials, Gen X and Boomers get a lot of attention in the home renovation business, Houzz found Gen Z homeowners (aged 18-29) now account for 0.5 percent of renovators, up from 0.2 percent the year prior, representing a growing share of the overall market. They are significantly more likely to renovate following a recent home purchase compared with previous generations.
The majority of Gen Z homeowners, or 76 percent, do interior room remodels, and that’s the highest share of any generation. Kitchens are a leading priority, 35 percent, though Gen Z homeowners are more likely than older generations to take on smaller spaces, particularly laundry rooms.
“Gen Z is carving out a growing share of the renovation market, driven in large part by their foray into homeownership and the immediate need to address functional upgrades,” said Sargsyan.
The 2026 study includes more than 20,000 respondents in the US and was fielded between January and March 2026.
