Why Are We Spending So Much Money on Home Renovations?

“Millennials are outspending everyone on home projects, and the reasons are both practical and emotional.

 

Americans are on track to spend a record $522 billion on home renovations in 2026, according to the Harvard Joint Center for Housing Studies.

 

Why so much? The reasons are varied, said Marine Sargsyan, the head of economic research for the online remodeling platform Houzz: High mortgage rates are forcing homeowners to stay put or modify their homes to squeeze in with other generations, while aging housing stock requires maintenance and systems updates.

 

For others — particularly generations that came of age with the internet, IKEA and HGTV — personal expression may be reason enough to renovate.

 

 In a recent Houzz survey on renovation trends for kitchens and bathrooms (the rooms its users are most keen to redo), 41 percent of homeowners cited “dissatisfaction with the old kitchen style” as a motivation.

 

Indeed, according to a new report from the home improvement site Angi, millennial homeowners are leading the way on renovations, spending about $14,199 per household on home improvements last year. That’s more than any other generation, according to the report, even though millennials don’t own the majority of homes.

 

Andy Bell, the chief executive of Ace Handyman Services, said he has noticed more remodeling projects by increasingly younger homeowners, many spurred by ideas on social media or A.I.-powered visualization tools that “put a plan in your hand,” he said.

 

Even with a plan, renovating a kitchen this year will likely cost anywhere from $20,000 to $75,000, while updated bathrooms could run between $5,000 and $25,000, according to Ms. Sargsyan’s research at Houzz.

 

Ace Handyman Services recently ranked the 25 home improvement projects with the highest return on investment based on cost and home resale prices. All were what Mr. Bell terms “functional” projects, like fixing exteriors or replacing heating and cooling systems. Topping the list: the decidedly unglamorous replacement of a garage door.

 

But that doesn’t mean you shouldn’t renovate for less practical, more personal reasons. In Mr. Bell’s view, remodeling a room just for pleasure makes financial sense if you plan on enjoying that room for a decade or more before you move.” [1]

 

 

1. Why Are We Spending So Much Money on Home Renovations?: Calculator. Wharton, Rachel.  New York Times (Online) New York Times Company. Mar 5, 2026.