Home renovation activity remained strong in 2024 with 54% of U.S. homeowners completing projects, though median spending dipped to $20,000 from the 2023 peak of $24,000, according to the 2025 Houzz & Home Study. While overall spending softened, investments in major remodels of smaller kitchens and bathrooms showed notable growth, with small kitchen renovations increasing 9% to $35,000 and small bathroom remodels rising 13% to $17,000.

"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. Despite economic pressures, 90% of renovating homeowners hired professionals for their projects.

Baby Boomers and Gen X led renovation activity (59% and 29% respectively), while Millennials increased spending on kitchen renovations. More than half of homeowners also enhanced outdoor spaces, with landscaping beds, lighting systems, and security improvements being the most common projects.

Most homeowners funded renovations through savings (84%), though credit card usage declined. Those undertaking luxury renovations were nearly twice as likely to use cash from recent home sales compared to the average renovator.

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