By early 2027, annual spending growth on home improvements is projected to plummet to just 0.5%, a stark contrast to recent boom years. The projected plummet of annual spending growth on home improvements to just 0.5% signals a significant shift from the robust growth seen previously, impacting market expectations for home remodeling in 2026 and beyond, according to Realtor and Qualified Remodeler.

Overall home remodeling growth is projected to slow sharply, but high-end projects and long-term homeowner commitment are maintaining a substantial, albeit more selective, market. This creates a complex environment for firms navigating the slowdown in home improvement spending.

The home remodeling industry appears poised for a significant market segmentation, where broad-based growth gives way to a more specialized, value-driven landscape, potentially leaving less adaptable firms vulnerable.

What We Know About Home Remodeling Trends

  • Year-over-year growth in home renovation and repair spending is projected to be 0.5% by the first quarter of 2027, according to Realtor and Qualified Remodeler.
  • Homeowners are hesitant to undertake large expenses like home remodels due to concerns about the economy, reports Realtor.
  • The intended median spending on home renovations is declining in 2026, notes Kitchen & Bath Design News.
  • High-end remodeling activity gained momentum in 2025, with the top 10% of projects reaching $150,000 or more, up from $140,000 in the prior year, according to Kitchenbathdesign.

Economic Headwinds Create a Bifurcated Market

Homeowners are hesitant to undertake large expenses like home remodels due to concerns about the economy, according to remodeling spending expected to slow sharply as homeowners remain wary of economy. This economic caution directly impacts discretionary spending, leading to a projected decline in the intended median spending on home renovations in 2026, as noted by ‘more measured approach’ seen to remodeling in 2026.

Conversely, high-end remodeling activity gained momentum in 2025. The top 10% of projects reached $150,000 or more, an increase from $140,000 in the prior year, according to Kitchenbathdesign. This suggests a widening gap between budget-conscious homeowners pulling back and affluent homeowners continuing to invest in high-value projects, driven by differing economic sensitivities.