by Although many homeowners plan to forge ahead, many are concerned about rising materials, labor costs
PALO ALTO, Calif. — Nearly 90% of homeowners planning renovation projects this year plan to move ahead with those projects, although the same percentage say they expect challenges ranging from higher materials and labor costs to difficulty finding available professionals to do the work.
These are among the key findings of the 2026 Houzz Renovation Plans report released last month.
And while 64% of households earning $150,000 to $200,000 say they are very confident about moving forward with their projects, this drops to 57% for those making from $100,000 to $150,000, 32% for those making from $50,000 to $100,000 and to 45% for those making under $50,000.
On average, only 9% overall said they were not confident in their plans moving forward. For those planning to delay the work, the top reasons cited included projects are not urgent (37%); the weather and timing are not ideal (30%); budget constraints and high prices (both 17%); and economic uncertainty (16%).
However, more than half (54%) said they have no changes in store for their plans, while 13% said they plan to expand their initial renovation project. Another 33% said they were not sure, and none said they planned to reduce the size of their project.
“Homeowners are committed to their planned projects in 2026, fully aware of the challenges ahead,” said Marine Sargsyan, head of economic research at Houzz. “Since 2012, home equity has grown faster than mortgage debt, giving homeowners financial flexibility to invest in their spaces. At the same time, a shortage of U.S. housing supply persists and the housing stock is aging, with half of the homes being 40 years old or older. These long-term structural trends, paired with homeowners’ desire to stay put and personalize their living spaces, continue to support renovation activity, even as they navigate inflation and a shifting economic landscape.”
Fielded Oct. 10-22, the survey included responses from 1,034 homeowners with an average income of $175,000. Some 70% identified themselves as baby boomers (ages 61-79), and 87% said they live in single-family homes, including 34% who moved into their home more than 20 years ago and 32% who said they have lived there less than five years.
Some 93% said they plan to hire a professional for the work, which can include anything from larger projects such as new cabinet installation and additions such as sunrooms or screened-in porches to smaller projects such as new countertops or the installation of new doors or windows.
While many of the projects will involve general contractors, custom builders, architects, painters, electricians and plumbers, 13% of those surveyed said they plan to hire an interior designer and 19% said they plan to hire a kitchen or bath designer.
The percentage of those planning to use an interior designer and kitchen and bath designer rises to 20% and 30% respectively for projects of $50,000 or higher.
Regardless of the type of project, renovations and other home improvements in general can encourage homeowners to spend on other enhancements such as the replacement or updating of old or worn-out furniture.
Thus, the implication is that new furniture could very well become part of the equation in these projects in the year ahead. This affords opportunity both to interior design firms and retailers offering in-house design services.
With such data in hand, retailers thus have another angle for their marketing toolbox that equates new furniture with home improvement. After all, the walls, cabinets, windows, doors and rooms in general will look significantly vacant without the right furniture. It’s what we would suggest completes not only the room, but the entire home.
