Home renovation spending keeps climbing. Median spending on renovation projects increased 60% from 2020 to 2023, moving from $15,000 to $24,000, according to the Houzz & Home Study of more than 30,000 homeowners. Over half of the owners who renovated in 2023 spent $25,000 or more, up from 37% in 2020. The same upward drift shows up in contractor pipelines; the 2023 renovation survey key trends and what they mean for builders lay out how these spending shifts change bidding and scheduling.
Spending is rising even though renovation activity eased. The share of owners renovating slipped two percentage points to 56% in 2023, which means fewer projects carrying bigger budgets. Renovations are becoming larger, better planned, and more expensive per job, and that pattern affects everything from material orders to trade capacity.
This article breaks the survey down into practical pieces: what the spending data means for your budget, how generations differ, where overruns come from, and how much time planning really takes. The numbers come from the Houzz & Home Study, and they line up with what contractors report about average job sizes across the country.
What the Latest Renovation Spending Data Shows
The survey tracks both how many homeowners renovate and how much they spend. Beyond the headline 60% jump in median spending, the share of projects crossing the $25,000 threshold grew from 37% in 2020 to more than half of all renovating households in 2023. Kitchens remain the most renovated interior room at 29%, with guest bathrooms at 27% and primary bathrooms at 25%.
Spending by Room and Project Size
Money is concentrating in the rooms people use daily. Kitchen median spending reached $24,000, up 20%, while primary bathroom median spending hit $15,000, up 11%. The table below compares the 2020 and 2023 figures for the key measures in the study.
Guest bathrooms and primary bathrooms trail kitchens by only a few points, 27% and 25%, which makes bathroom work nearly as common as kitchen work. The two rooms also share a habit: owners renovate them with resale in mind, so finishes get chosen for broad appeal rather than personal taste.
| Measure | 2020 | 2023 | Change |
|---|---|---|---|
| Median project spend | $15,000 | $24,000 | +60% |
| Share spending $25,000 or more | 37% | Over half | +13 points |
| Renovation activity | 58% | 56% | –2 points |
| Kitchen median spend | About $20,000 | $24,000 | +20% |
| Primary bathroom median | About $13,500 | $15,000 | +11% |
Where the Money Goes
Specialty trades claim a growing share of renovation budgets. More than 9 in 10 homeowners hire at least one professional, and the share bringing in specialty help for electrical, plumbing, or painting rose one percentage point to 47% in 2023. Electrical work rewards early planning; hiring an electrician for home renovation projects goes more smoothly when the scope, permits, and inspection points are defined before demolition starts.
At the same time, fewer owners are handing the whole project to a general contractor. Hiring a construction professional to run the job fell to 42% in 2023, down two points, as more owners acted as their own general contractor. That shift puts more planning responsibility on the homeowner, from sequencing trades to keeping the schedule.
Which Generations Spend the Most on Renovations
Gen X spent more than any other age group for the second year in a row, with a median of $25,000 compared with $24,000 for Baby Boomers. Boomers still drive the majority of renovation traffic, accounting for 56% of survey respondents.
What Shapes a Generation’s Renovation Budget
Age, housing stock, and stage of life all shape how much households commit. Gen X owners often renovate larger family homes bought years earlier, while Boomers tend to fund targeted upgrades that keep aging housing stock functional. The pattern is not confined to one sector; renovation spending is up according to survey coverage in the log and timber home market as well, with the same mix of larger budgets and deliberate planning.
Project size tracks home age. Older housing stock needs more than cosmetic updates, and the need to update limited and aging housing stock continues to fuel demand for home improvements. Owners of newer homes renovate less often and spend less per project, while owners of older homes plan bigger, deeper work.
Budgeting, Cost Overruns, and Contingency Planning
Budget discipline improved, but overruns remain common. More homeowners set budgets in 2023 than in 2021, 76% versus 73%, yet nearly 2 in 5 still exceeded them. The 39% who went over cited unforeseen costs, expensive products or materials, and increased project complexity.
Why Renovations Run Over Budget
- Unforeseen conditions uncovered after demolition, from rot to outdated wiring
- Material price increases between quote and purchase
- Scope creep as open walls invite bigger decisions
- Trade quotes that climb when schedules slip
- Structural or mechanical complexity that shows up late
Building a Realistic Renovation Budget
A realistic budget starts before the first quote. A field condition survey of a building documents the actual state of framing, systems, and finishes, so the scope reflects what exists rather than what drawings assume.
- Define the scope room by room and write it down
- Collect three quotes per trade and compare line items
- Add a contingency of 10–20% before you approve anything
- Price materials at current market rates, not catalog prices
- Sequence work so nothing gets built twice
Allowances are the other common trap. A budget line for lighting, tile, or hardware that reads ‘as selected’ has no ceiling, so set the allowance at a realistic mid-range price and put the model numbers in the contract. If the owner picks something above the allowance, the difference becomes a documented change order instead of a surprise.
Contingency Fund Guidelines
A contingency is not a slush fund; it is the line item that absorbs the overrun risk. Hold it at 10% for cosmetic refreshes and 15–20% for projects touching structure, electrical, or plumbing, and spend it only through a written change order.
Planning Time: Preparation Takes Twice as Long as Construction
Owners dedicated almost twice as much time to planning as to building. Kitchen planning averaged 9.6 months in 2023 while construction took 5.1 months; living rooms followed at 8.1 months of planning and 4.1 months of building.
Why the Planning Phase Is So Long
Design decisions, permits, trade scheduling, and product lead times stack up before the first wall comes down. The planning phase is also where budgets get locked and where mistakes cost the least to fix. Owners who compress it usually pay for it later in change orders.
Product lead times drive a big share of the planning period. Custom cabinets, windows, and appliances routinely take eight to twelve weeks after ordering, and any item that arrives late stalls the trades waiting on it. The owners who finish inside the 5.1-month building window order those items the day the contract is signed, not the day the walls are open.
Protecting Finished Work During the Build
Long schedules mean finished areas sit unprotected while other rooms are worked on. Simple precautions prevent expensive rework; recessed light debris shields protect can lights during construction and renovation, keeping drywall dust and paint spray out of fixtures installed weeks earlier.
Managing Scope, Materials, and Construction Quality
The three most-cited reasons for overruns, unforeseen costs, expensive materials, and complexity, all trace back to decisions made before and during construction. Owners who control these three variables control the budget.
Measuring What Exists Before You Change It
Accurate as-built data reduces surprises. A scan line survey of the structure captures geometry that old drawings miss, giving designers and estimators a precise starting point for everything from wall moves to mechanical routing.
Material management is the quiet third leg of cost control. Delivered materials that sit outside in weather, get stored in the wrong room, or arrive short on quantity turn into reorders and delays. Verify deliveries against the order, store materials where the schedule says they belong, and protect them until installation.
Controlling Complexity
Complexity shows up where structure, mechanical systems, and finishes interact. Load-bearing walls, duct runs, and trim details should be resolved in drawings before they become change orders on the job site. Each unresolved interaction is a future cost overrun.
Keeping a Renovation on Schedule and on Budget
Projects that finish on time share a few habits: a written scope, a realistic budget with contingency, a single decision-maker, and trades who know the schedule before they start.
Checklists That Keep Projects Moving
- Set a decision deadline for every finish and fixture
- Order long-lead items at contract signing
- Hold a short weekly site meeting with the same agenda
- Write every change order down before work begins
- Inspect each trade’s work before the next one starts
Homeowners who run their own projects can borrow one habit from professional construction managers: keep a running log. Dates, decisions, costs, and change orders written down at the moment they happen settle disputes and keep the schedule honest.
Accuracy Depends on Working Tools
On long projects, the measuring and layout tools used at the start get used at every phase. Survey equipment that is cleaned, stored, and calibrated on schedule produces the same reliable numbers in week twenty as in week one; a guide on how to maintain survey equipment used in construction spells out the routine.
Plan long, budget honestly, and protect finished work as it goes in. A renovation that starts with a clear scope and ends with the house matching the drawings is the one that hits both schedule and budget.