While 50% of U.S. homeowners are planning home renovations in 2026, this marks a decrease from the previous year, according to Kitchen & Bath Design News. This reduction in activity occurs even as high-end projects continue to surge past $150,000.
Many homeowners are pulling back on renovation plans and median spending. Yet, the overall market is still projected to grow. High-end projects thrive despite general economic concerns. Homeowners hesitate to undertake large expenses like remodels due to economic worries, states Realtor.
The residential remodeling market is likely entering a period of slower, more selective growth. This favors substantial, long-term investments in current properties over broad-based activity. Homeowners consider renovations instead of selling in 2026.
The 'Forever Home' Imperative
Nearly two-thirds of homeowners, 61%, plan to stay in their homes for 11 years or more, according to Kitchen & Bath Design News. This commitment to long-term residency means homeowners are less likely to invest in superficial updates. Instead, they seek foundational changes that enhance livability and property value for decades.
Affluent Homeowners Drive Market Growth
High-end projects, those in the top 10%, reached $150,000 or more in 2025. This signifies a focus on substantial, high-value renovations. The 'forever home' phenomenon acts as a catalyst for these investments, not just a reason to stay put.
The residential remodeling market is not contracting. Instead, it concentrates wealth. A shrinking pool of affluent homeowners, committed to their 'forever homes,' are now the primary drivers of market growth through high-value projects. This leaves mid-tier contractors to scramble for fewer, less profitable jobs, according to Kitchen & Bath Design News and Realtor. The market's growth now hinges on a select few, rather than broad participation.
