The State of Home Renovations in 2025
The 2025 U.S. Houzz & Home Study reveals that more than half of homeowners renovated their homes in 2024, with a median spend of $20,000. Key statistics and trends in home renovations highlight the ongoing demand for kitchen and bathroom upgrades, despite the softening of renovation spend.
 

  • 54% of homeowners renovated their homes in 2024
  • Median spend on renovations was $20,000
  • Homeowners in the top 90th percentile spent $140,000 or more on renovations

Homeowners in the United States are continuing to invest in their homes, with more than half of renovating homeowners completing a major renovation of their kitchens or primary bathrooms. Median spend on major renovations of large kitchens and bathrooms remained steady at $55,000 and $25,000, respectively. However, median spend on major renovations of smaller spaces has seen notable growth. The median spend for major remodels of small kitchens rose by 9% to $35,000, while major remodels of small primary bathrooms increased by 13% to $17,000.
For high-end renovations, budgets expand considerably, with large, upscale kitchens starting at $150,000 and small luxury kitchens beginning at $90,000. Similarly, homeowners are investing at least $70,000 when renovating large luxury bathrooms and $45,000 or more in smaller high-end bathrooms. “The softening in renovation spend reflects the impact of elevated borrowing costs and the rising prices for everyday goods and services, which limit how much homeowners can allocate toward home improvements,” said Marine Sargsyan, Houzz staff economist. A study by Houzz Inc. found that 9 in 10 homeowners (90%) choose to work with a professional, with nearly half (49%) hiring specialty service providers. Homeowners also turn to general contractors, builders, and interior designers for their guidance and execution. When planning a renovation, homeowners can find and hire building, remodeling, and design pros using Houzz Pro. When it comes to funding, homeowners most frequently tap into their savings for renovation projects (84%), followed by credit cards (29%), secured home loans (12%), and Home Equity Lines of Credit (HELOCs) (6%). Secured home loans are more common among homeowners with higher-end renovations, ranging from $50,000 and $200,000. Homeowners are also using cash from recent home sales for luxury renovations. A long-term commitment to their homes is evident, with more than half of renovating homeowners (56%) holding full equity in their homes. Homeowners are planning to stay in their homes for at least 11 years following their project, with 61% planning to stay put. Pent-up demand continues to be the strongest motivator for home upgrades, with homeowners reporting they finally have the time and means to pursue a renovation. The Houzz & Home Study also provides insights into the renovation habits of different generations. For example, Baby Boomers and Gen X homeowners continue to lead in renovation activity, with a similar spend to the national median of $20,000 each. Seniors outpaced both generations in median spend at $22,000.
Outdoor projects are also gaining popularity, with more than half of renovating homeowners (53%) enhancing their outdoor spaces. Homeowners are also making functional upgrades, with work on beds and borders, lighting systems, and security systems being the most frequently tackled projects. Decks are the most common outdoor structure project, followed by sheds and gazebos. Built-in outdoor kitchens are a niche feature but have shown a slight uptick in popularity. The 2025 U.S. Houzz & Home Study provides valuable insights into the home renovation market, with a focus on the ongoing demand for kitchen and bathroom upgrades, despite the softening of renovation spend. Homeowners are continuing to invest in their homes, with a long-term commitment to their properties and a focus on aesthetic and functional improvements. The study highlights the ongoing importance of professionals in the home renovation industry, with 9 in 10 homeowners choosing to work with a pro.