U.S. Homeowners Choose Remodeling Over Moving
Redfin, a technology-powered real estate brokerage backed by Rocket Companies, has released new survey findings that highlight a growing shift in homeowner behavior across the United States. Rather than relocating, a significant number of Americans are choosing to invest in upgrading their existing homes. The data reveals that 43% of Americans completed a home renovation within the past year, while an additional 33% say they plan to undertake renovation projects in the coming year.
The trend reflects a broader change in how homeowners approach housing decisions. For many, renovating is no longer just about improving aesthetics—it has become a practical alternative to moving. According to the survey, approximately 65% of homeowners who recently renovated their properties did so instead of purchasing a new home. Looking ahead, this preference is even more pronounced, with 71% of those planning renovations indicating that they are choosing remodeling over relocation.
The findings are based on a survey commissioned by Redfin and conducted by Ipsos in November 2025. The survey gathered responses from 4,000 U.S. residents, providing a comprehensive snapshot of current homeowner sentiment and behavior in a challenging housing market.
One of the primary drivers behind this trend is affordability—or the lack of it. Moving has become increasingly expensive due to a combination of high home prices and elevated mortgage rates. Many homeowners are effectively “locked in” to their current properties because they secured mortgages at significantly lower interest rates in previous years. In fact, around 80% of homeowners with mortgages currently benefit from rates that are below today’s market levels. For these homeowners, selling their property and purchasing a new one would likely mean taking on a higher monthly payment, making relocation financially unattractive.
Beyond financing concerns, supply constraints are also influencing homeowner decisions. Although housing inventory has seen a slight increase compared to the previous year, there remains a shortage of desirable, move-in-ready homes. This is particularly true for properties that offer sufficient space for families. As a result, many homeowners find that upgrading their existing property is a more practical solution than searching for a new home that meets their needs.
Demographic factors also play a role in this shift toward renovation. Younger homeowners, particularly those from Generation Z and Millennials, are more likely than older generations to invest in home improvements rather than move. Among these groups, 77% reported choosing to renovate instead of relocating within the past year. This tendency may reflect their position earlier in the homeownership lifecycle, where investing in upgrades can increase property value and build long-term equity.
Households with children are another group driving the renovation trend. Families are often motivated to remain in their current homes to maintain stability, particularly when it comes to school districts and community ties. Renovating allows them to adapt their homes to evolving needs—such as adding bedrooms, creating home offices, or redesigning living spaces—without the disruption of moving.
Chen Zhao, head of economics research at Redfin, emphasized this evolving mindset among homeowners. She noted that many Americans are choosing to make their current homes better suited to their lifestyles rather than seeking new properties. This can involve modernizing outdated interiors, expanding living areas to accommodate growing families, or reconfiguring layouts to improve functionality. Younger homeowners, in particular, appear more willing to invest in their properties as a long-term strategy, while families often prioritize staying rooted in familiar communities.
Despite the increasing interest in renovations, most homeowners are approaching these projects with a clear focus on budget management. The survey indicates that the majority of renovation spending remains relatively moderate. About 23% of homeowners who completed renovations in the past year reported spending between $10,000 and $20,000, making this the most common investment range. Smaller-scale projects are also popular, with 21% spending between $1,000 and $5,000, and another 20% investing between $5,000 and $10,000.
At the higher end of the spectrum, 16% of homeowners reported spending between $20,000 and $50,000 on renovations. While these larger investments are less common, they often involve more extensive upgrades such as kitchen remodels, bathroom renovations, or structural changes. Overall, the data suggests that many homeowners are opting for targeted improvements that deliver meaningful results without requiring a full-scale overhaul of their property.
This balanced approach to renovation reflects a broader strategy among homeowners: maximizing the value and functionality of their existing spaces while avoiding the financial and logistical challenges associated with moving. By focusing on incremental upgrades, homeowners can enhance comfort, improve efficiency, and potentially increase the resale value of their homes over time.
The growing preference for renovation over relocation underscores the impact of current market conditions on consumer behavior. As long as affordability challenges persist and housing supply remains constrained, this trend is likely to continue. For the real estate and construction industries, it signals sustained demand for home improvement services, materials, and skilled labor.
In conclusion, the latest findings from Redfin illustrate a clear shift in the U.S. housing landscape. Faced with high costs and limited options, homeowners are increasingly choosing to stay put and invest in their existing properties. Whether driven by financial considerations, lifestyle needs, or long-term planning, this trend highlights the evolving priorities of modern homeowners and the enduring importance of adaptability in a changing market.
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