A new study found that two in five Americans renovated their home in the past year.
The home renovation market is continuing to be an alternative for builders and contractors stymied by the lackluster new home building market. Nearly two-thirds, or 65 percent, of current homeowners said they were turning to renovations rather than moving. And an additional third of homeowners said they plan to renovate in the next year.
The new study from the real estate company Redfin, fielded in November 2025 to 4,000 U.S. residents, said moving costs, high mortgage rates and the rising prices of homes are all factors driving the home renovation business. It found that 80 percent of respondents have mortgages below current rates.
Breaking out the data by demographic group, the survey results showed that Gen Zers and millennial homeowners are more likely than other groups to remodel instead of move, with 77 percent of each generation saying they made improvements rather than moving in the last year. Also, homeowners with kids living at home are more likely than others to choose renovations.
“Many Americans are choosing to stay put and make the home they already have work for them,” said Chen Zhao, Redfin’s head of economic research. “That could mean improving outdated spaces, adding space for a growing family or reconfiguring the existing space so it works for everyone. Younger homeowners are especially likely to renovate instead of jumping to a different house; they’re earlier in their homeownership journey and more willing to invest in improvements to build equity. Those with kids living at home are often motivated to plant deeper roots where they are so they can stay in the same school district and community.”
