What $522 Billion in Home Renovations Reveals About Today’s Homeowners

Homeowners are expected to spend $522 billion on home renovations in 2026, according to the latest Leading Indicator of Remodeling Activity. 

That means that homeowners are investing in their homes in a big way. 

But a new survey from Clever Offers shows those projects aren’t always happening easily. Many homeowners are navigating rising costs, unexpected repairs, and tight budgets while trying to improve the homes they already have.

For agents, this matters because renovation decisions are happening long before a listing conversation ever starts. And those decisions shape what you walk into when you sit down at the kitchen table.

Homeowners Are Investing in Their Homes, Even With Rising Costs

According to the survey, homeowners are continuing to spend on renovations and repairs:

• Nearly 2 in 3 homeowners say they would rather renovate than move to a remodeled home
• 46% plan to spend more on renovations this year than they did last year
• Almost half expect to spend at least $5,000
• 28% expect to spend $10,000 or more

Most renovation projects aren’t driven by resale value alone. Homeowners say they’re renovating primarily to repair damage (46%), increase comfort (38%), enhance the aesthetic appeal of the home (35%), improve livability (33%), and personalize the home (31%). 

In other words, renovation decisions are often about everyday life first and financial return second.

Renovation Regret Is More Common Than You Think

While homeowners are spending, many aren’t fully confident about where that money is going.

The report found:

• 70% of homeowners went over budget on their most recent renovation
• 58% say they regret at least one aspect of a project
• 30% went into debt to complete a renovation
• 19% had to stop a project midway due to unexpected costs

Regret isn’t always about the result. It’s often about the cost, timeline, and disruption to daily life.

Many homeowners say they wish they had spent less, planned better, or chosen different projects. Others underestimated how long work would take or how disruptive renovations would be to their routine.

For agents, this reinforces a simple principle: not every improvement is worth the cost, especially without a clear goal.

Budget Constraints Are Real 

One of the most notable findings in the report is how many homeowners are operating with limited financial flexibility.

• Half say there are necessary repairs they need right now but can’t afford
• 58% have no savings set aside for emergency home repairs
• 85% had an unexpected repair cost last year

The report also highlights rising costs, with 60% of those surveyed saying tariffs are negatively impacting their renovation plans. 

That creates a complicated environment for decision-making. Homeowners may want to update, repair, or improve their homes, but the financial path isn’t always straightforward.

DIY Is Increasing, and It Comes With Risk

To manage costs, more homeowners are turning to DIY projects.

The survey found that nearly all homeowners (96%) would attempt a DIY project under the right circumstances, with many taking on the work specifically to save money. 

However, about 1 in 4 have caused damage during their DIY projects, which ends up costing them more. 

DIY can be a practical solution for some projects. But it can also lead to additional repairs or unexpected costs, especially when homeowners take on work that requires specialized skills.

What This Means for Agents

This report isn’t about telling homeowners whether to renovate or whether to sell. It’s about understanding the environment homeowners are operating in.

They’re investing in their homes and navigating rising costs while trying to balance comfort, function, and finances at the same time.

For agents, the opportunity is to provide clarity.

That might mean:

• Talking through ROI before projects begin
• Helping prioritize updates
• Setting realistic expectations
• Offering perspective on what matters most

As Andrew Undem tells homeowners at listing appointments:

“I would never recommend a seller spend a dollar unless they’re getting three back.”

Whether a homeowner is planning to sell soon or simply thinking ahead, that kind of guidance builds trust.