Latest from Bath/Kitchen
Sponsored
More than half of homeowners renovated their homes in 2024 (54%) at a median spend* of $20,000, according to Houzz Inc., a leading platform for home remodeling and design. The 2025 U.S. Houzz & Home Study of nearly 22,000 U.S. respondents found that overall median spend dipped from its peak in 2023 ($24,000) though it remains above 2021 levels ($18,000). Homeowners in the top 90th percentile spent $140,000 or more on renovations, down from $150,000 in 2023.
While kitchens and primary bathrooms follow a similar trend with softening median spend (kitchens down 8% year over year and bathrooms down 13%), major remodels** of kitchens and bathrooms continue to drive the market.
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. Meanwhile, investment in major renovations of smaller spaces saw notable growth. 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.
For high-end renovations (the top 10% of spending), budgets expand considerably. Large, upscale kitchens start at $150,000, while small luxury kitchens begin at $90,000. Similarly, homeowners are investing at least $70,000 when renovating large luxury bathrooms and $45,000 or more in smaller high-end bathrooms.
Ongoing Demand
“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. “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.”
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.
Funding Sources Shift for Higher-end Projects
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%).
Long-term Commitment
More than half of renovating homeowners hold full equity in their homes (56%) and they’re committed to living there long-term with 3 in 5 planning to stay put for at least 11 years following their project (61%). Pent-up demand continues to be the strongest motivator for home upgrades, with homeowners reporting they finally have the time and means to pursue a renovation (40% and 35%, respectively).
Generational Renovation Insights***
Baby Boomers and Gen X homeowners continue to lead in renovation activity (59% and 29%, respectively), with a similar spend to the national median of $20,000 each. Though representing a smaller share of renovators, Seniors outpaced both generations in median spend at $22,000. Gen X renovators are the most likely to undergo luxury projects with the top 10% of homeowners exceeding national levels and spending $150,000 or more, followed by Baby Boomers and Millennials at $125,000 or more each.
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.
Outdoor Projects
More than half of renovating homeowners (53%) enhanced their outdoor spaces in 2024, completing nearly two outdoor projects on average. While aesthetic improvements are common, many homeowners are also making functional upgrades. The most frequently tackled projects include 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.
* Median spend is the midpoint level, meaning half of renovating homeowners on Houzz spent more and half spent less.
** Major kitchen remodel refers to a remodel in which at least all the cabinets and appliances are replaced. Major primary bathroom remodel refers to a remodel in which at least the cabinetry/vanity, countertops and toilet are replaced.
*** Generational categories follow Pew Research Center’s age ranges: Gen Zers (18-26), Millennials (27-42), Gen Xers (43-58), Baby Boomers (59-77) and Seniors (78+).
The Houzz & Home Study
The annual US Houzz & Home Study is the largest survey of residential remodeling, building and decorating activity published. The survey covers a wide range of renovation projects in 2024, from interior remodels and additions to home systems, exterior upgrades and outdoor projects.
Data gathered includes historical and planned spends, professional involvement, motivations and challenges behind building, renovation and decorating projects, as well as planned activities for 2025. The 2025 study includes nearly 22,000 respondents in the US alone, providing insights into the home improvement activity of the millions of users of the Houzz site and mobile apps.
The 2025 U.S. Houzz & Home survey was sent to registered users of Houzz and fielded between January and February 2025.
The full report is available at www.houzz.com/ideabooks/181188659/.