Home renovation demand stays steady as homeowners trim 2026 budgets
Homeowners are still spending, but many are walking into stores with $15,000 budgets and a tighter plan. Expect more repair, refresh and selective-upgrade traffic than big-bang remodels.
Budget-conscious homeowners are still coming through the doors, but they are arriving with tighter project lists and more questions about total cost, not just the first cart they pull together. That should shape what associates and managers see over the next few months: steady traffic, more comparisons at the shelf, and a heavier mix of repair, refresh and targeted replacement work than full-scale remodels.
The Home Improvement Research Institute says the market is being shaped by housing constraints, inflation concerns, tariffs and trade-policy questions, housing mobility, shifting homeowner demographics and contractor confidence. It describes the home improvement products market as “fairly sensitive” to the health of housing and consumer demand, which fits what store teams are likely to feel on the floor. When shoppers are cautious, they usually do not stop spending altogether. They slow down, spread projects out and lean harder on associates to help them decide where to save and where to spend.
Houzz’s 2026 U.S. Houzz & Home Study, based on responses from 20,358 users including 10,176 renovating U.S. homeowners, showed that 54 percent renovated in 2025 and 50 percent plan to take on projects in 2026. The median actual renovation spend held at $20,000, but the median planned spend for 2026 dropped to $15,000. Houzz also said 37 percent of homeowners went over budget last year, while the top 10 percent of projects reached $150,000 or more, up from $140,000 the year before.
For Home Depot associates, that mix suggests more customers asking for price checks, product substitutions and advice on how to stage work instead of doing everything at once. Paint, flooring, bath, kitchen and repair aisles are likely to feel it first, especially when shoppers come in trying to keep a project alive after the first round of estimates. Houzz said more than 9 in 10 homeowners planning 2026 projects intend to move forward, and more than 9 in 10 expect to work with professionals, which should keep contractor relationships and pro desks active even if budgets are tighter.
The broader housing backdrop is still mixed. Freddie Mac said on April 23 that the 30-year fixed-rate mortgage averaged 6.23 percent, the lowest level in the last three spring homebuying seasons. But the National Association of REALTORS® reported existing-home sales fell 3.6 percent in March, with limited inventory still pushing prices higher and lower consumer confidence and softer job growth weighing on buyers. Home Depot said fourth-quarter fiscal 2025 sales reached $38.2 billion and comparable sales rose 0.4 percent, including a 0.3 percent increase in the U.S., and the company outlined fiscal 2026 guidance after saying it was taking share. For store leaders, the signal is clear: customers are still remodeling, but they are doing it with discipline.
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