Renovation Trends Send a Message
Spending on home upgrades remains strong, but growth is slowing. For agents, the shift could influence seller prep, buyer expectations and pricing conversations.
NEW YORK – U.S. homeowners are still investing in renovations, but remodeling growth is expected to slow in 2026 as higher costs and shifting priorities reshape demand, even as some markets show greater resilience.
Total spending on home improvements and maintenance is projected to reach $522 billion by year-end. However, year-over-year growth will average just 1.6% by year-end, down from an average of 2.9% in early 2026, according to the latest Leading Indicator of Remodeling Activity, released by the Harvard University Joint Center for Housing Studies.
Hannah Jones, senior economic research analyst at Realtor.com, said, "A downshift in remodeling growth, even as total spending reaches a high level, points to a slow-growth, normalization phase rather than a downturn in the housing market."
With higher mortgage interest rates, averaging 6.3%, and rates for lines of credit and home equity loans remaining higher than 7%, large projects will likely be less appealing for many homeowners. Rising labor and material costs are adding further pressure.
"The pace of growth is easing as pandemic-era drivers, including extra savings and emergency upgrades, continue to fade," Jones said. Even so, areas with improving home sales and permitting activity may see remodeling demand hold up better than the national average.
Source: Realtor (01/26) Conte, Allaire
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