Renovation activity has remained strong in 2026, with homeowners completing smaller, more necessary projects over luxury renovations. Recent data from the Home Improvement Research Institute (HIRI) reveals insights into what retailers can expect for homeowner spending patterns throughout the rest of 2026 and how to cater to shifting behaviors and preferences.
Outlook on home improvement varies by orientation
HIRI has broken up renovating homeowners into four segments: Content Homeowners (passive orientation), Repair First Homeowners (problem-solving orientation), Maintenance First homeowners (stewardship orientation) and Renovation Ready Homeowners (proactive orientation). Each segment behaves in different ways when it comes to home improvement spending.
- Percentage of homeowners who believe their home improvement spending will increase in the next 12 months compared to the past 12 months:
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- 15% of Content Homeowners
- 35% of Repair First Homeowners
- 26% of Maintain First Homeowners
- 57% of Renovation Ready Homeowners
Renovation activity was led by maintenance and repair in 2025
Top reasons for home improvement activity in 2025:
- Maintain or repair: 76%
- Improve comfort (41%, same as 2024)
- Improve aesthetics (36%, compared to 38% in 2024)
- Safety and security (27%, compared to 25% in 2024)
- Increase functionality (26%, same as 2024)
- Increase home value (25%, compared to 29% in 2024)
- Energy efficiency (21%, compared to 23%)
Affordability factors continue to impact home improvement decisions
The top factors that would motivate homeowners to start a project in 2026 include:
- Increased household income (47%, compared to 44% in 2024)
- Improved economic conditions (47%, compared to 38% in 2024)
- Financial incentives (38%, compared to 34% in 2024)
Channel behaviors are changing among homeowners
The channels that homeowners used to purchase products and materials in 2025 were:
- Big-box retailers (72%, same as 2024)
- Local hardware stores (27%, compared to 23% in 2024)
- Online-only retailers (21%, compared to 19% in 2024)
- Mass retailers (21%, compared to 20% in 2024)
- Lumber yard/building material dealers (17%, compared to 13% in 2024)
- Specialty suppliers (14%, compared to 17% in 2024)
- Warehouse clubs (9%, compared to 8% in 2024)
- Direct from manufacturer (8%, compared to 7% in 2024)
Hybrid approach is preferred to pure DIY methods
More homeowners are choosing to use a mix of DIY methods and contractors to complete renovations:
- Home improvement completion methods in 2025:
- DIY (52%, compared to 57% in 2024)
- Both DIY and contractor (24%, compared to 20% in 2024)
- Hired a contractor (24%, compared to 23% in 2024)
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