A recent survey discovered that more than half of American homeowners (54%) are currently renovating, while a slightly smaller share (52%) reports they’re decorating.
Spending patterns remain relatively stable, with the median renovation cost at $20,000, down from a peak of $24,000 in 2023.
However, higher-end spending has increased, with the 90th percentile rising to $150,000 in 2025, compared to $140,000 in 2024.
Half of homeowners (50%) plan to undertake some sort of projects in 2026, down slightly from 52% last year.
41% are planning just to redecorate, while 35% are eyeing only repairs, both declining (from 44% and 37% in 2025, respectively).
The rising cost of living is reflected in people’s latest budgets, too, with the median planned renovation at $15,000 in 2026, down from $20,000 in 2025.
Interestingly, Gen Z homeowners account for just 0.5% of renovators; however, that share has gone up from 0.2% the previous year.
They are significantly more likely to renovate following a recent home purchase (61%) than millennials (31%), Gen X (19%), and baby boomers (18%).
One-third (33%) of Gen Z undertaking renovations do so to adapt to lifestyle shifts, while 22% address home damage.
Most homeowners (84%) still pay for renovations using their savings. However, more than one-third (34%) now use credit cards, up 5 percentage points from last year. Homeowners with renovation budgets over $50,000 are also more likely to use a mix of funding options. For example, 23% use home equity loans and 20% use cash from selling a home, compared with homeowners who have smaller renovation budgets.
When Harper's BAZAAR asked five interior designers what they believe to be the biggest mistakes in the field, Jake Arnold, whose clients include Aaron Paul, Chrissy Teigen and John Legend, as well as Rashida Jones and Dan Levy, said the worst one he sees is, “Designing for someone else’s house, not your own. Just because you’ve seen something online doesn’t mean it’s a good fit for your home.”
Katie Hodges, whose work has been featured in Architectural Digest, ELLE Décor, Vogue, and Luxe Magazine, added that people should stop scaling down their furniture to fit a room. “There seems to be a misconception that small spaces require small and leggy furnishings, but it actually has the opposite effect,” she explained.
“One mistake that people tend to make is forgetting to measure their space when shopping for furniture,” said Erick Garcia, founder of Maison Trouvaille.
“I’ve seen it time and time again where pieces are either too large or too small, which causes the atmosphere to feel imbalanced. This removes the opportunity to truly create and design a beautiful interior to its full potential.”