The 2023 Houzz & Home Survey, based on responses from more than 46,000 U.S. homeowners, offers a detailed look at renovation activity, spending, and homeowner priorities. For builders and contractors, the results are a practical reference for adjusting your sales approaches in any market. The sections below break down the most relevant findings and connect them to actions you can take on the job site and in your sales process.
Renovation Demand Shows Staying Power
More than 3 in 5 homeowners who completed a renovation in 2022 said they plan to remain in that home for 11 years or more (61%). In contrast, the share of owners renovating with a plan to sell in the near term has dropped by half since 2018, from 12% to 6%. These figures point to a sustained demand for upgrades that support long-term living, not quick resale. Builders should expect requests for functional layouts, accessibility features, and durable materials that hold up over decades.
Nearly 3 in 5 homeowners remodeled or redecorated last year, with 58% completing remodels and 57% redecorating. Another 48% made repairs. More than half of all homeowners (55%) have projects planned for 2023, indicating that renovation activity will likely remain strong. For contractors, this means a stable pipeline of work if you can match your services to the most common project types.
Why homeowners are staying put
The decision to stay often reflects lifestyle factors: remote work, aging in place, and multigenerational households. Renovations in this context tend to be larger and more carefully planned. Use performance data from your previous projects to set realistic budgets and timelines for clients who are making a long-term commitment.
What this means for your project calendar
Because long-term homeowners may be willing to invest more, they often schedule work in phases. Offer clear checklists and milestones so they understand the relationship between foundational systems and finish work. This approach builds trust and helps you manage cash flow across several months.
- Prioritize a thorough structural review before quoting.
- Plan for dust and noise control in occupied homes.
- Schedule inspection points to avoid costly changes.
Financing Options Shift as Costs Rise
How homeowners pay for renovations affects how they compare contractors and make decisions. In the 2023 Houzz survey, 82% of homeowners used savings to fund their projects. Credit cards were used by 28% of respondents, but that share fell by 10 percentage points from the previous year. Secured home loans, such as home equity loans, became more common, with 16% of owners using one, up from 14% in 2020. Among projects with a median spend over $50,000, more than a quarter of homeowners (26%) financed with a secured loan.
These patterns align with broader construction market reports. The shed business climate survey also found that financing conditions and cost pressures influence project volume in smaller construction businesses. Recognizing these conditions helps you prepare accurate quotes and flexible payment schedules. Homeowners who use secured loans typically receive their funds in a lump sum, so they expect a clear project schedule and invoice before payments are released.
Pricing transparency is expected
Clients using loans need formal estimates, schedule of values, and clear invoices. Building these documents before starting work prevents disputes and keeps financing approvals on track. You can also offer breakdowns by trade, so homeowners understand where their money goes. Provide digital payment options and secure documentation systems to keep the process transparent.
Loan considerations for larger projects
When a project exceeds $50,000, clients are more likely to use secured financing. That means your contract should specify draw schedules and inspection milestones. Provide documentation that matches lender requirements, including a detailed scope of work and lien waivers where needed.
| Financing method | Percentage of renovating homeowners |
|---|---|
| Savings | 82% |
| Credit cards | 28% |
| Secured home loans | 16% |
Kitchens, Bathrooms, and Additions Lead the Project Mix
Interior renovations dominate the market. 72% of homeowners focused on interior spaces, and the average homeowner undertook three interior projects during 2022. Kitchens and bathrooms were the most popular rooms, with 28% reporting kitchen remodels and 25% upgrading bathrooms. Both figures increased slightly from 2021. Additions also grew: 1 in 10 homeowners (10%) completed an addition in 2022, up from 8% in each of the previous four years. Kitchens, bathrooms, and living rooms were the most common spaces added.
For builders, this means demand for trade coordination and design-build services. A robust performance management system helps you track labor, material deliveries, and subcontractor work across multiple projects. Create a structured schedule for additions, where framing, mechanical rough-ins, and finishes must align closely. Set weekly progress meetings when multiple trades are active, and document any change orders in writing.
Planning an addition in four steps
- Assess the existing foundation and structural capacity before design.
- Check local zoning, setback, and permit requirements.
- Order framing and long-lead materials early to avoid delays.
- Coordinate plumbing, electrical, and HVAC rough-ins before closing walls.
Additions require careful sequencing because they disturb existing occupied areas. Clearly communicate the noise and dust timeline to homeowners, and plan temporary utility access when needed. The rise in additions also means structural engineers are becoming a more common part of the workflow, especially for second-story additions or roof changes. Homeowners often request a minimum of two quotes for additions, so your proposal should clearly outline the scope of existing structural work, permit fees, and finish allowances. This approach reduces rework and keeps the addition on budget.
Systems Upgrades Are a Growing Opportunity
The median age of U.S. homes continues to rise, driving homeowners to repair or replace outdated systems. In 2022, 29% upgraded plumbing, 28% upgraded electrical, and 25% added or upgraded home automation. Cooling and heating systems had the highest median spend, at $5,500 and $5,000 respectively. More than 1 in 5 renovating homeowners focused on heating or cooling systems. Older homes often have undersized panels and outdated pipe materials, which can turn a simple upgrade into a larger systems replacement.
Systems upgrades are often triggered by failures, but many homeowners use a renovation as an opportunity to improve efficiency. Offering bundled packages that pair mechanical work with interior refresh tasks can boost revenue. For example, after upgrading plumbing, a client may decide to update the bathroom finish. A cost comparison of paint or wallpaper gives them realistic options for the final look.
The connection between systems and finishes
When walls and floors are opened for plumbing or electrical, it is often cost-effective to do finish work in the same area. Coordinate with painters, flooring installers, and trim carpenters to minimize disruption and avoid rework. This consolidation also makes your estimate more competitive because labor is used efficiently.
How to price systems upgrades
Base your quote on the age of the home and the condition of existing lines, wiring, and ductwork. Test water pressure, circuit capacity, and HVAC performance before bidding. A clear inspection report helps homeowners understand why investing in systems now prevents larger costs later. Heating and cooling replacements typically require load calculations and permit approvals, so factor those costs into your estimate. Many utility companies also offer rebates for high-efficiency equipment, which can reduce the net price for homeowners.
Generational Differences Shape Spending and Priorities
Baby boomers remained the most active renovation segment, with 59% completing a project in 2022. Gen Xers followed at 27%, and Millennials at 9%. Gen Xers, however, outspent baby boomers for the first time on a median basis, at $25,000 versus $24,000. This suggests that Gen X homeowners are taking on slightly larger remodel projects, even though fewer of them are renovating overall. This generational divide matters for marketing and sales. Baby boomers are more likely to respond to print mailers or referrals, while Gen X and Millennials prefer digital portfolios, online scheduling, and transparent pricing.
Understanding these generational patterns helps you tailor communication and design options. Boomers may prioritize accessibility and low-maintenance materials, while Gen X clients often focus on smart home features and open layouts. Millennials, though a smaller share, are likely to enter the market as first-time homeowners and may start with repairs and smaller upgrades.
Before any major renovation, especially in an older home, complete a thorough field condition survey to identify existing defects and code violations. This step is particularly valuable when working with homes built before 1980, where lead paint, asbestos, or outdated wiring may be present.
Matching your services to the customer
Offer different project tiers based on budget and scope. A base tier could cover essential repairs and safety updates, while a premium tier includes design, structural changes, and smart home integration. For precise measurements of existing structures, use a scan-line survey to capture accurate as-built data that reduces guesswork in the field. It also helps you identify structural modifications not visible in original drawings.