2025 American Houzz & Home Remodeling Trends Forecast
Revamped Article:
Hey there! Let's dive into the latest home renovation trends, as revealed by a new report by Houzz. Here's what Marine Sargsyan, Houzz staff economist, had to say about it.
A Variety of Home Modifications
The report reveals that homeowners engaged in equal parts renovating and decorating in 2024, with 54% participating in each activity. According to Sargsyan, 47% of respondents were into home repairs, while a smaller 4% were building new homes.
Looking ahead to 2025, there's a shift in focus towards maintenance, with 52% planning renovation projects and only 44% planning to decorate. Interestingly, only 2% are building a new home next year.
The Motivation Behind Renovation
Sargsyan shared that 40% of Houzz respondents were driven by finally having the time to embark on a renovation project. In second place, 35% noted that they had the necessary financial resources. Other reasons included customizing a recently-purchased home (21%), addressing damage due to age or other factors (17%), and adjusting to lifestyle changes (17%).
In unexpected news, 7% of respondents are planning to sell their homes soon, while another 7% are renovating to address disaster-related damage. When asked about damage experienced in the last 5 years, 14% reported water damage from plumbing or other issues, and 12% mentioned damage from natural disasters.
Bathrooms Gaining Popularity
Kitchens have traditionally been the hotspot for renovation, but guest bathrooms are catching up, with 24% of respondents renovating their bathrooms, equaling the 24% renovating kitchen areas. In addition, 22% are remodeling the primary bathroom, 18% are choosing to renovate the living room, and 14% are renovating the guest bedroom. Notable mentions include closets, laundry rooms, and primary bedrooms, all tied at 13%.
Midrange Projects in the Spotlight
Sargsyan mentioned that midrange projects ($10,000 to $49,000) made up the largest share (43%) of renovation spending in 2024. Breaking it down, 25% of homeowners fell in the $10,000 to $24,999 range, compared to 18% in the $25,000 to $49,000 range. At the high end, 16% of respondents spent more than $100,000 on renovations.
Financing Renovation Projects
According to Sargsyan, 84% of homeowners dip into their savings to fund renovation projects. Credit cards are utilized by 29% of survey respondents, while 12% use secured home loans, with HELOCs (home equity loans or credit) being the most popular choice for 6% of homeowners. Cash-out refinancing and general home equity loans were both selected by 3%, and other methods included using cash from the sale of a home, gifts and inheritances, insurance payoffs, tax refunds, unsecured loans, and retirement plans.
As you plan your home renovation project next year, keep these trends and insights in mind. Happy renovating!
In 2025, homeowners are expected to focus more on maintenance-oriented renovation projects, with 52% planning renovations compared to 44% focusing on home decorating, as per the Houzz report. As for the housing market, renovation trends for 2025 include a rise in customizing newly purchased homes (21%), addressing aging or damage-related issues (17%), and adjusting to lifestyle changes (17%).
When pondering house renovation ideas for 2025, beverly, bathrooms are gaining popularity, as shown by the report — 24% of homeowners are planning to renovate their guest bathrooms, matching the 24% who prefer to revamp kitchen areas. Looking at home remodeling costs in 2024, midrange projects ($10,000 to $49,000) made up the largest share (43%) of renovation spending.
For home-and-garden enthusiasts and home-improvement aficionados seeking housing options with ongoing renovation trends, Houzz provides valuable insights into home design trends, interior design trends, and renovation trends for 2025. When it comes to financing these renovation projects, 84% of homeowners often rely on their savings, while 6% prefer HELOCs (home equity loans or credit), as per the report.
