More than half of all homeowners found the time and financial means to renovate their homes in 2025, with a higher share of millennials and Gen Z diving into the renovation world, according to Houzz's 2026 House & Home Study.

The annual report surveyed more than 20,000 Houzz users across the nation to figure out how Americans are budgeting for their projects, their reasons for renovating, the scope and spend of projects, and more.

According to Marine Sargsyan, the head of economic research at Houzz, home renovation is still continuing "at historic levels" while homeowners simultaneously "take a more cautious approach" to their projects.

"What’s driving this resilience is pent-up demand from homeowners who are finally able to act on long-planned renovations," Sargsyan said. "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."

Baby boomers still lead for renovation projects, but millennials and Gen Zers are starting to gain ground
Houzz's 2025 report put an emphasis on older homeowners prioritizing renovations to "age in place," but this year, younger homeowners are entering the spotlight for interior remodels and system upgrades.

While 50 percent of homowners plan to renovate this year, the report said the growing share of younger homeowners is creating a "generational shift" in renovation demographics. The percentage of millennials taking on renovation projects rose from 8 to 10 percent year-over year, and Gen Z now represents 0.5 percent of all renovating homeowners, compared to 0.2 percent in 2024.

A majority of Gen Z homeowners (63 percent) are renovating because they intend to customize their recently purchased homes, while the remaining share is renovating because they finally have the time (44 percent) or they're adapting to recent changes in their lifestyle (33 percent).

Baby boomers still account for more than half of all homeowners undertaking renovation projects, but Gen Xers are also gaining ground at 34 percent.

"For both Millennials and Gen Xers, having the financial means is the leading trigger (40 percent each), closely followed by or equal to having the time to take on projects (39 percent and 40 percent, respectively)," the report said. "Among older homeowners, timing is the primary driver. Baby Boomers most frequently cite finally having the time (40 percent) as the top reason for renovating, followed by financial readiness (34 percent)."

Budgeting needs and project scope
Homeowners are tackling renovations because they finally have the time or the financial means, the survey found. And nearly a third of homeowners are taking on extensive — and expensive — projects that cost $50,000 or more. Only 17 percent of all homeowners are spending more than $100,000 on their renovations.

The most common spend range is still between $10,000-$24,999, with 23 percent of homeowners picking renovation budgets within that bracket. However, 27 percent of homeowners are aiming to spend under $10,000.

When considering large-scale projects, one may want to account for any surprise costly repairs, upgrades, and other remodeling services. The report said many homeowners went over their intended spending in 2025.

"More than a third of renovating homeowners (37 percent) exceeded their planned project spend in 2025, compared with 35 percent who came in at budget and just 3 percent who completed projects under budget," Houzz said.

The five most common reasons a project went overbudget are "higher than expected costs," choosing more expensive materials than originally planned, unexpected complexity with project planning, project or design scope changes, and unexpected construction issues.

For interior projects, kitchens and bathrooms are the most popular projects homeowners (across all generations) are remodeling, and they have the biggest budgets.

It's time to upgrade your outdated kitchen.Photo by Joshua Nolden/Design by CROSS

"Kitchens commanded the highest median spend ($24,000, up from $22,000 in 2024), while the median spend on primary bathroom increased to $15,000 from $13,000 year over year," Houzz said. "Guest bathrooms also commanded a higher median spend in 2025 ($7,000, compared with $6,000 in 2024)."

As previously revealed in Houzz's 2026 Kitchen Trends study, renovators are focusing on functionality over looks for their kitchen upgrades. That means more built-in cabinet storage for specific needs, new sinks or countertops, and expanded kitchen areas with new features like beverage stations or walk-in pantries.

Top exterior and outdoor projects, plus enhanced security features
Roofing tops the list for most homeowners' exterior renovation projects, followed by windows and skylights, exterior painting, gutter upgrades, and exterior doors. Meanwhile, decks, sheds or workshops, upgraded lighting, and new furniture are the most common outdoor projects, the report found.

In today's modern age, smart security features are also a highlight for homeowners, such as wireless doorbell and indoor security cameras, smart garage door openers, and wireless door locks.

"Many homeowners also purchased alarms and detectors (28 percent) and TVs (27 percent), with a more even mix of
standard and smart options," Houzz said. "Among outdoor technology items purchased in 2025, homeowners
preferred smart security cameras over standard (25 percent versus 3 percent, respectively) but favored standard lighting fixtures over smart ones (21 percent versus 8 percent, respectively)."

Photo by Norton Aerial Media, LLC/Design by Boyce Design + Build

Upgrading for functionality doesn't always mean de-prioritizing style.