High-end home renovations are soaring to $150,000 in 2025, a 7% jump, even as the average homeowner plans to cut their future spending by 25%. The soaring of high-end home renovations to $150,000 in 2025 (a 7% jump) and the average homeowner's plan to cut their future spending by 25% signals a profound shift in homeowner renovation spending habits as 2026 approaches.

Current median renovation spending remains stable at $20,000. However, high-end projects are increasing, while average homeowners anticipate spending less and relying more on credit cards for necessary upgrades.

Therefore, the home renovation market is bifurcating, with luxury projects thriving while the broader market faces increased financial caution and potential debt reliance among average consumers.

Understanding the Current Climate

Median spending for home renovations holds steady at $20,000, according to Family Handyman. Median spending for home renovations holding steady at $20,000, however, masks deeper financial shifts occurring across different income brackets.

Nearly a third (34%) of homeowners finance their renovations with credit cards. The immediate reliance on high-interest debt by nearly a third (34%) of homeowners suggests a financial vulnerability for many, even as overall median spending appears consistent.

The Widening Gap: Luxury Soars, Average Spending Dips

High-end renovation spending increased significantly, with the 90th percentile rising to $150,000 in 2025, up by 7% from $140,000 in 2024, according to Family Handyman. High-end renovation spending increasing significantly, with the 90th percentile rising to $150,000 in 2025, up by 7% from $140,000 in 2024, according to Family Handyman, confirms a strong upward trajectory for affluent homeowners' investments.

Conversely, the median planned renovation spend stands at $15,000 in 2026, a notable decrease from $20,000 in 2025, according to Family Handyman. The 25% reduction in median planned renovation spend for average homeowners (from $20,000 in 2025 to $15,000 in 2026) starkly contrasts with luxury market growth.