Homeowners Survey: 48% Plan To Renovate in 2025
Homeownership is still a goal for many Americans, but higher prices and mortgage rates are making it harder to move. According to our recent survey, 91% of homeowners don’t plan to sell in 2025, with many choosing to stay put because buying a new home is too expensive. As home prices continue to rise—reaching a median of $435,000 in October 2024—and mortgage rates stay high, housing affordability could become even harder to achieve.
Homeowners staying put may be interested in repairing or replacing current systems and appliances, or they may be planning large-scale renovations to spruce up their homes. Some repairs and replacements may be covered by a home warranty if systems or appliances break down due to normal wear and tear, which can help homeowners navigate some of the financial challenges of homeownership. However, bigger renovation projects often require homeowners to save up.
To better understand homeowners’ plans and the economic factors at play, the research team at This Old House surveyed 2,000 homeowners about their renovation and selling plans for 2025. This report looks at how inflation, high home prices, and mortgage rates are affecting renovation plans and the housing market.
Key Findings
- Nearly half of homeowners plan to remodel in 2025, but one in three say they need to save up longer due to inflation.
- To afford renovations, 61% of homeowners plan to borrow money, including 30% who plan to use their credit cards.
- Fifty percent of homeowners who plan to remodel say they want to improve the appearance of their living space, while 49% are renovating to make repairs.
- Seventeen percent of homeowners don’t plan to sell because they don’t want to give up their current mortgage rates.
- Of the 91% of homeowners who don’t plan to sell in 2025, 24% say they can’t afford a new home.
Nearly Half of Homeowners Plan To Renovate in 2025
About 48% of homeowners plan to make renovations in 2025, with younger Americans much more likely than baby boomers to plan home improvements. Leading the pack are millennial homeowners (60%), followed by Gen Z (56%) and Gen X (50%). Baby boomers are less likely to have remodeling plans, with only 32% planning renovations.
When it comes to renovation goals, 50% of those remodeling in 2025 say they’re doing it to make their living space look better, while 49% are making repairs. Additionally, 41% plan to renovate to make their living space more comfortable, and another 41% plan to remodel to increase their home’s value.
Despite these plans, 91% of homeowners aren’t looking to sell their homes in 2025. More than half of those staying put (56%) say their homes suit their current needs, which could indicate a preference for investing in renovations for personal lifestyle reasons rather than for future sales.
The most common spaces that respondents plan to improve are bathrooms (53%) and kitchens (51%), which are two high-traffic areas of the home. These spaces often see the most use and can significantly impact both your daily comfort and your home’s value.
How much homeowners spend on renovations depends on the extent of each makeover. A smaller bathroom renovation that involves updating plumbing, fixtures, and paint would likely cost less than $5,000, while a major remodel could cost as much as $40,000.
To cover these costs, most homeowners plan to rely on their checking or savings accounts, and 61% plan to borrow money to help pay for renovations. The most common borrowing methods are credit cards (30%), personal loans (17%), home equity loans (15%), and home equity lines of credit (15%).
1 in 3 Homeowners Have Had To Save Longer To Afford Renovations
A third of homeowners say inflation has forced them to save more before they can afford the home improvements they want. Additionally, 27% have had to scale back their renovation plans due to rising costs. To save on labor, one in five homeowners (20%) are taking projects on themselves instead of hiring professionals.
Another factor that could affect renovation costs is tariffs. However, the homeowners we surveyed are divided on the impact tariffs might have: 33% believe tariffs would make their projects more expensive, while only 14% think tariffs could lower their costs.
Meanwhile, 19% of homeowners expect tariffs to have no effect on their renovation costs. The largest share (34%) is unsure how tariffs will influence these expenses.
Home Prices, Mortgage Rates Keep Homeowners in Place
Of the 2,000 homeowners we surveyed, most (91%) don’t plan to sell in 2025. Financial concerns are a common reason, with 24% saying they can’t afford new homes and 17% unwilling to give up their current mortgage rates.
Why Some Homeowners Are Selling
For the one in 10 homeowners who’ve already listed their homes or who have plans to sell in 2025, these are their common reasons for selling:
- I want to move to a more desirable area. (51%)
- I want a smaller or bigger home. (43%)
- I need the money from selling my home. (22%)
- I want to buy a new home while interest rates are low. (21%)
- I believe there will be increased demand among homebuyers. (16%)
- I can no longer afford homeowner costs (mortgage, insurance, repairs, etc.). (13%)
Rising home prices and higher mortgage rates have made moving less appealing. In 2024, the median home sale price hit $435,000 in October, while the average rate for a 30-year fixed-rate mortgage climbed to 6.84% in November. Homeowners who secured historically low rates—as low as 2.65% on average in 2021—are hesitant to trade them for today’s higher rates.
Meanwhile, 19% of homeowners are waiting to see how the economy shifts under the new presidential administration before deciding whether to sell.
How To Manage Home Renovation Costs
If you’re among the homeowners planning to renovate in 2025, follow the steps below to get the most bang for your buck on your project.
- Set a clear budget: Write down all expected costs, including materials and labor, and leave room for unexpected expenses. A detailed budget can help keep your project on track. No one likes surprise bills.
- Know when and when not to DIY: Taking on projects yourself can save money, but only do it if you have the skills and time to do it well. Mistakes can result in costlier fixes than hiring a professional in the first place.
- Choose the right contractor: Read reviews, compare quotes, and ask for references from past clients. Hiring someone reliable can save you stress and money in the long run.
- Stay in touch: Check in with your contractor regularly to discuss progress, address any issues, and make sure the project stays on schedule and within budget.
- Focus on what matters most: Prioritize projects that improve your home’s functionality or add value, such as upgrading the kitchen or fixing structural issues, before tackling cosmetic changes.
Methodology
The research team at This Old House surveyed 2,000 U.S. homeowners using Pollfish, a third-party market research and survey platform, to gain insights regarding Americans’ plans to sell or remodel their homes in the near future. We collected survey data for this report on Nov. 12, 2024.
Median home prices are from Redfin, a national real estate brokerage. Average mortgage rates are from the Federal Reserve Bank of St. Louis.
We weighted responses to align with population demographics across age and gender to be representative of all U.S. adults (aged 18+). The margin of error is +/- 2% with 95% confidence.
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