In 2026, the number of remodeling firms in the U.S. surged to 128,000, nearly doubling since 2000, as homeowners poured money into existing properties. Over half of American households show a profound commitment to invest significantly in their current residences, enhancing both functionality and long-term value.
Homeowners are investing record amounts into renovating existing homes, but this trend is simultaneously driving up project costs and potentially making homeownership less accessible for others. The very act of improving existing homes, while beneficial for current owners and the renovation industry, creates a higher barrier to entry for prospective buyers due to escalating expenses.
Therefore, the housing market is likely to see continued appreciation in existing, well-maintained properties, while the demand for specialized renovation services will remain high, potentially at the expense of new, affordable housing stock.
A Nation of Renovators: The Scale of the Boom
- 54% — More than half of U.S. homeowners undertook renovation projects in 2026, according to Forbes.
- 128,000 — The number of remodeling firms operating at the start of 2026, up from 69,000 in 2000, according to BuilderOnline.
These statistics confirm a robust, professionalized industry driven by homeowners' sustained commitment to upgrading their current residences. This trend suggests a fundamental shift in the housing market, where optimizing existing structures now often takes precedence over new construction.
Where the Money Goes: Popular Projects and Rising Costs
| Renovation Type | % of Homeowners | Median Spend (2026) | Previous Year Median Spend |
|---|---|---|---|
| Kitchen Renovation | 26% | $24,000 | $22,000 |
| Guest Bathroom Renovation | 25% | $7,000 | $6,000 |
| Roofing | 22% | $13,000 | Not provided |
