Homeowners are on track to spend an estimated $518–522 billion on home improvements in 2026, though growth is cooling as the year goes on.¹,² Rather than pulling back entirely, most homeowners are shifting toward smaller, necessary projects and being more deliberate about budgets—a notable change in home improvement spending trends.
Home improvement remains a steady priority for American households, even as broader economic conditions create more caution around larger renovations.
How Much Are Homeowners Spending on Home Improvement?
Total homeowner spending on improvements and maintenance is projected to reach roughly $518–522 billion by the end of 2026.¹,² Year-over-year growth is expected to ease from nearly 3% early in the year to about 1.6% by year’s end, reflecting a housing market that’s stabilizing but still constrained.²
On an individual level:
- Homeowners planning a project over the next 12 months expect to spend an average of $3,100.³
- Major renovations carry a much higher average price tag—nearly $24,000.³
- Among homeowners with a planned renovation budget, 59% expect to spend $10,000 or more, and nearly 40% anticipate budgets of $20,000 or more.⁴
For planning large financial projects like these, see Financial Advice for Retirement Planning for Florida Retirees.
What Home Improvement Projects Are Homeowners Prioritizing?
Interior work remains the most common focus, with nearly four out of five homeowners planning an interior project in the next 12 months.³ Outdoor spaces aren’t far behind:
- About two-thirds of homeowners plan exterior envelope or yard, garden, and outdoor projects.³
- Backyard upgrades—including pools and outdoor living areas—remain especially popular, particularly in warmer climates like Florida, where outdoor space often gets year-round use.
- Roughly half of homeowners are planning a maintenance project in the near term, with another 30% planning a repair.³
This mirrors a broader shift: homeowners are increasingly staying in their current homes and reinvesting in them rather than moving, treating renovation as a long-term investment in comfort rather than a short-term resale strategy.⁵
Home Renovation Costs and Budgeting Trends
Rising home renovation costs are shaping how—and whether—homeowners take on bigger projects:
- About 40% of homeowners feel it’s currently a bad time to start a large project in the $25,000-plus range.³
- By contrast, roughly one-third feel it’s a good time to start a smaller project under $5,000.³
- Budgeting habits remain a mixed bag—many homeowners still begin projects without a clear budget in place, a trend that has persisted for years despite rising costs.
Material and labor costs continue to be a key factor. Renovation costs have risen enough that even modest projects now require more careful planning than in past years, and homeowners are increasingly weighing project scope against available cash versus financing options.
Should You Start a Home Improvement Project Right Now?
Whether it makes sense to move forward depends heavily on the scope of the project:
- Small, necessary projects (under $5,000) remain broadly attractive, even in a cautious spending environment.
- Mid-sized projects ($10,000–$20,000) are still common, especially for homeowners with dedicated renovation budgets.
- Large-scale renovations ($25,000+) warrant more careful financial planning given current cost and rate conditions.
Thinking About a Home Improvement Project?
If you’ve recently upgraded your home or you’re considering financing a renovation, please give us a call. We’re always happy to help you explore your options and plan with confidence.
Frequently Asked Questions
How much are homeowners spending on home improvement in 2026?
Total U.S. homeowner spending on improvements is projected to reach approximately $518–522 billion in 2026, with individual homeowners planning an average of $3,100 for near-term projects and nearly $24,000 for major renovations.
What home improvement projects are most popular right now?
Interior projects remain the most common, with nearly 80% of homeowners planning one in the next 12 months. Exterior and outdoor projects—including yard, garden, and backyard upgrades—follow closely, at around two-thirds of homeowners.
Is now a good time to start a home renovation?
It depends on project size. Many homeowners feel it’s a good time for smaller projects under $5,000, while about 40% consider it a less favorable time for large-scale renovations of $25,000 or more due to rising costs.
Why are home improvement costs rising?
Home renovation costs continue to be affected by material prices, labor costs, and broader economic conditions, all of which factor into how homeowners plan and budget for projects in 2026.
Do most homeowners budget before starting a project?
Many homeowners still begin home improvement projects without a formal budget in place, a pattern that has continued for years even as renovation costs have risen.
- Joint Center for Housing Studies (JCHS), Leading Indicator of Remodeling Activity (LIRA), 2026
- The Farnsworth Group, Construction and Remodeling: Industry Drivers and Forecast Report, 2026
- Home Improvement Research Institute (HIRI), 2026
- Great Day Improvements, 2026 State of American Home Renovation & Improvement
- Housecall Pro, 2026 Home Services Report
