This week Houzz released the results of their annual 2025 U.S. Houzz & Home Study, which found that more than half of homeowners renovated their homes in 2024 (54%) at a median spend of $20,000.
The overall median spend dipped from its peak in 2023 ($24,000) though it remains above 2021 levels ($18,000). Similarly, higher-budget updates (with the top 10% of spend) reached $140,000 or more, down from $150,000 in 2023.
More than half of homeowners planning projects in 2025 (52%), at an anticipated median spend of $15,000 and $85,000 for higher-budget projects, up from $80,000 in 2024. Kitchen projects have historically been the most popular type of renovation project but it does not leave out homeowners’ desires to upgrade both the bathroom and kitchen. Other popular homeowner project ideas that top the list for home renovation projects are smart home tech and indoor and outdoor decor.
Outdoor projects offer aesthetic and functional improvements with the most frequently tackled projects including: work on beds and borders (29%), lighting systems (23%) and security systems (18%).
Additionally, homeowners are investing in hardscape and structural features, with decks being the most common outdoor structure project (14%), followed by sheds/workshops (8%) and gazebos/pergolas (7%). Although built-in outdoor kitchens remain a niche feature (3%), their popularity has shown a slight uptick from 2% in 2023.
Home renovation activity remains strong amid softening spend. People are willing to spend on major kitchen and bathroom renovations.
The 2025 Houzz & Home Report is the largest survey published of residential remodeling activity, with nearly 22,000 U.S. respondents. For more information, read the full report here. You can find products associated with the findings from the Houzz Shop.
Fun facts about Kitchen Renovations
- Median spend on major renovations of large kitchens (200+ square feet) and large bathrooms (100+ square feet) held steady at $55,000 and $25,000, respectively.
- The median spend for major remodels of small kitchens (less than 200 square feet) rose by 9% to $35,000, while major remodels of small primary bathrooms (less than 100 square feet) increased by 13% to $17,000.
- Large, upscale kitchens start at $150,000, while small luxury kitchens begin at $90,000.
- Major kitchen remodel refers to a remodel in which at least all the cabinets and appliances are replaced.
Facts About Bathroom Renovations
- Similarly, homeowners are investing at least $70,000 when renovating large luxury bathrooms and $45,000 or more in smaller high-end bathrooms.
- Major primary bathroom remodel refers to a remodel in which at least the cabinetry/vanity, countertops and toilet are replaced.
Renovating Homeowners want to hire the Pros
Professional hiring remains widespread across project type and size, with 9 in 10 homeowners choosing to work with a pro (90%). Nearly half of renovating homeowners hire specialty service providers (49%), up from 46% in 2022. 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 for a standout experience.
“What stands out, however, is homeowners’ ongoing demand and consistent investment in sizable kitchen and bathroom upgrades. Perhaps even more telling, notable growth in spend on smaller spaces signals that even amid economic pressures, homeowners are prioritizing meaningful improvements no matter the size of the home.” said Marine Sargsyan, Houzz staff economist.
Renovation Homeowners Financing
Homeowners most frequently tap into their savings for renovation projects (84%). Credit cards remain the second most common financing method, though their popularity has declined by 8 percentage points from last year, now at 29%. Secured home loans funded 1 in 8 projects (12%), with Home Equity Lines of Credit (HELOCs) being the most common (6%), followed by cash-out refinancing and general home equity loans (3% each).
Secured home loans are more common among homeowners with higher-end renovations ranging from $50,000 and $200,000 (18%). Meanwhile, those undertaking luxury renovations are nearly twice as likely to use cash from recent home sales (19%) compared with homeowners across all project levels (10%).
About Millennial Renovation Homeowners
Meanwhile, renovating Millennials are gaining tenure in homeownership, with a 5 percentage point increase in those who have lived in their homes for six or more years (36%). While median spend among this group is $15,000, investment in kitchen renovations has grown year-over-year (from $15,000 in 2023 to $20,000 in 2024), compared to older generations who have cut back on kitchen renovation spend.
About Houzz
Houzz is the leading platform for home remodeling and design, providing an all-in-one software solution for industry professionals and tools for homeowners to update their homes from start to finish. Using Houzz, people can find ideas and inspiration, hire professionals and shop for products. Houzz Pro provides home industry professionals with a business management and marketing SaaS solution that helps them win projects, collaborate with clients and teams, and run their businesses efficiently and profitably. The Houzz community is made up of millions of homeowners, home design enthusiasts and home improvement professionals around the world. Houzz is available on the web and as a top-rated mobile app. For more information, visit houzz.com. Houzz is a registered trademark of Houzz Inc. worldwide.
Show Comments