Home Factors 
If you’ve been keeping tabs on the home improvement space lately, you know it’s not just about paint colors and trendy backsplashes anymore—you really need to have a strategy.
Homeowners in 2025 and 2026 are approaching projects with a mix of optimism and caution, and that’s been a huge change of pace for the entire market.
Impulsive remodels are a thing of the past. Decisions made today are grounded in economic realities, lifestyle priorities, and a desire for smart investments. People are asking “What’s worth my time and money?”
It means brands, contractors, and even DIY influencers need to think differently about how they connect with homeowners.
So, what’s driving this change? Let’s dive into the top 10 trends shaping homeowner spending behavior and see what they mean for the future of home improvement.
1. Steady Market Growth Despite Caution
The home improvement market isn’t slowing down, it’s just getting smarter.
According to HIRI, the industry is projected to grow by 2.5% in 2025 and then accelerate to 4% annually through 2029, ultimately hitting a staggering $688 billion. Homeowners still see value in investing in their spaces, even while feeling the strain of the economy.
And what’s most interesting is how this growth is playing out. DIY product volumes are expected to rise by 1.3% in 2025, and this trend looks to be even stronger heading into 2026. Which means, people are simply realigning.
They’re leaning into smaller, manageable upgrades that deliver impact (without draining the budget). Today’s Homeowners want control, flexibility, and the confidence that every dollar spent will add real value to their space.
2. Trade Policy & Tariffs Remain a Concern
Tariffs and trade policy are still effecting the home improvement landscape in subtle ways. They’re influencing things like raw material costs and finished product pricing.
Right now, many companies have managed to handle those cost increases by becoming more efficient or finding new suppliers—but that won’t last. HIRI expects a gradual pass-through of costs to consumers as we move into 2026. That means homeowners could start noticing price adjustments. It won’t be a sudden spike, but rather a slow creep that will make budgeting even more critical.
If you’re a brand or contractor, transparency is key. You’ll want to offer alternative materials, phased project plans, and bundled savings.
3. Economic Indicators Are Mixed
The economic picture for homeowners right now is a bit of a paradox.
Unemployment has crept above 4% and consumer confidence is hovering near its lowest point since mid-2022. It’s no surprise that people are feeling cautious.
On the other hand, real disposable income has grown by about 2% YOY. This means households technically have more money to work with, even if they’re hesitant to spend it.
Homeowners are being more strategic with their spending, prioritizing projects that feel essential or deliver tangible returns. Such as energy efficiency upgrades, preventative maintenance, and small-scale improvements.
This is the moment for you to lean into messaging that emphasizes value, longevity, and peace of mind. Show them how modest investment today can prevent costly repairs tomorrow, and emphasize how you can help them boost resale value down the road.
4. Housing Inventory Is Increasing
On the surface, the housing market looks like it’s letting up. Inventory is up more than 20% YOY, which should mean more choices for buyers. But, the reality is more complicated.
According to HIRI, Homeownership dropped by 0.6%, and new home starts are projected to hover around 1.32 million in 2026— reflecting a market effected by affordability and interest rates.
Those who “locked-in” are reluctant to trade their low rates. That means fewer moves, fewer listings, and more people deciding to stay put and improve what they already have.
For the home improvement industry, this is a huge win. When moving feels expensive, upgrading feels smart. Offering space optimization, energy efficiency, and lifestyle upgrades can help them turn their current home into a forever home.
5. Prioritization of Maintenance over Remodels
Priorities shift when budgets tighten—and right now it’s maintenance first, remodels second.
According to HIRI, maintenance projects are outpacing renovations by nearly 2:1, and we don’t anticipate that trend to slow down.
It’s all about safeguarding your investment: fix leaks before they become floods, replace an aging system before it fails, and tackle those small issues before they snowball into an expensive emergency.
This is the perfect opportunity to spotlight maintenance bundles, seasonal checklists, and DIY-friendly kits that make upkeep easy and affordable. Highlight “home health” services, annual inspections, preventative care plans, and priority scheduling for loyal customers.
6. Professional Engagement Becomes More Selective
The number of available construction jobs has dropped by roughly 34% month-over-month (HIRI), Homeowners are getting more selective about when to call in the pros.
Demand for labor isn’t disappearing, homeowners are simply reserving professional help for more complex tasks (like electrical, plumbing, and structural changes). They can tackle simpler upgrades on their own.
It’s a direct reflection of tighter budgets and growing DIY confidence (fueled by online tutorials and easy-to-use products).
Try positioning yourself as a specialist. Create DIY kits paired with optional pro services for the trickier tasks.
Homeowners want control, but they also want assurance.
7. DIY Spending Is Tightly Scoped
Homeowners are keeping their DIY ambitions realistic, with realistic budgets to match.
According to HIRI, most plan to spend under $5,000 on projects in 2026. Their comfort zone includes manageable, low-risk upgrades that feel achievable without financial stress. Only a small number believe it’s a good time to tackle mid-range projects in the $5,000–$25,000 range, and even fewer are ready to green-light anything above $25,000.
These homeowners want improvements, but they’re prioritizing flexibility and affordability.
For your brand, it’s the moment to lean into a variety of options to match these varying budgets. Consider offering phases to your project plans—help homeowners start small now and expand later.
8. Project Focus Shifting
In Q3 of 2025, homeowners finally pivoted away from big exterior jobs and leaned into interior upgrades.
The two big reasons behind the shift are seasonality and practicality. For example, better lighting, improved layouts, and spaces that feel cozy and functional for everyday living.
Major yard projects slowed, but smaller exterior improvements (like landscaping and curb appeal) are still happening.
This is the time for you to showcase “weekend-ready” interior solutions; paint kits, lighting upgrades, smart storage systems, and energy-efficient appliances. Emphasize easy and quick installs and fast turnaround times.
Homeowners are investing where they spend the most time, and they want upgrades that make life easier and more comfortable.
9. Practical Aesthetic Upgrades in Demand
Today’s homeowners are looking for upgrades that look good, feel good, and make sense.
According to HIRI, practical aesthetic improvements are leading the pack: furniture that refreshes a worn out space, appliances that add convenience and efficiency, a fresh coat of paint that transforms a room, and affordable landscaping that boosts curb appeal.
These projects are easy to complete, visually impactful, and budget friendly.
And it’s related to psychology as much as it is economics. Big remodels can feel overwhelming, so homeowners crave quick wins that deliver an immediate sense of progress… and pride.
Create curated style bundles, appliance packages with energy savings, and paint kits that make DIY feel easy-breezy. Offer one-day installs or seasonal landscaping refreshes.
Homeowners want practical aesthetics: upgrades that make their homes feel better now, without the stress of major construction.
10. Budget Discipline & Lifestyle Trade-offs
Homeowners are forced to make tough choices when the budget is tight.
According to HIRI, most households plan to trim spending on non-essential categories like dining out, vacations, and entertainment so they can maintain (or increase) their home improvement investments. Because our homes are our sanctuary, and often a financial asset. In uncertain times, upgrading where you live feels like a pretty good bet.
Priorities are shifting toward projects with long-term value- like safety enhancements, accessibility features, and even upgrades that enable rental income.
Position your offerings as investments, not as expenses. Show homeowners how a modest upgrade can improve comfort today and pay off for them tomorrow—through energy savings, resale value, or functionality.
Implications for 2026
By understanding these ten homeowner trends, you can tailor your marketing strategies and messaging to align with the practical, cautious, and value-driven mindset that’s shaping home improvement in 2025 and 2026.
