New Data: Half of Homeowners Can't Afford Necessary Renovations

Popular Home Renovations | Renovation Regrets | Renovation Costs | Unplanned Repair Costs | Tariffs' Impact on Renovations | How Budgets Shape Renovation Choices | Delaying Maintenance | Renovation Timeline | Hiring a Contractor | The DIY Approach

Turning a house into a home sometimes means tearing it apart first. Homeowners are expected to spend $522 billion on renovations in 2026 as the expensive housing market makes moving an unrealistic option for many Americans. 

In fact, nearly 2 in 3 homeowners (64%) would rather renovate their home than move to one that's already been remodeled, according to a new survey of 1,000 American property owners from Clever Offers. 

But what starts as a dream to make their homes more comfortable and functional often devolves into weeks of dust, delays, and disorder — with 49% of homeowners saying their renovation was more stressful than they anticipated and 58% reporting at least one regret. 

Many homeowners find the financial burden of remodeling — fueled by rising material costs and unexpected expenses — adds significant stress to an already demanding process. Budget constraints top the list of challenges homeowners experienced during their latest renovation, and 50% say there are necessary renovations they need right now that they can't afford.

Homeowners aren't just postponing necessary renovations, they're also delaying regular maintenance needed to keep their home in good condition. About two-thirds of homeowners (65%) have ignored a maintenance task in the past five years, but more than one-fourth (29%) say they've had a "preventable" repair because of delayed maintenance.

Unfortunately, more than half of homeowners (58%) say they have nothing saved to cover such emergency repairs.

Keep reading to learn more about how homeowners are forging ahead with renovations and repairs in 2026 while navigating rising costs and tightening budgets.

Nearly 2 in 3 Homeowners Would Rather Renovate Than Move

With high home prices and interest rates making homeowners reluctant or unable to move, many are choosing to revamp their current spaces instead. Nearly 2 in 3 homeowners (64%) would rather renovate their home than move to one that's already been remodeled. 

It's no surprise, then, that 98% of homeowners have completed a major renovation in the past five years. The most common major renovations include:

• Interior painting (42%)
• Heating and air conditioning upgrades (36%)
• Bathroom renovation (35%)
• Flooring upgrades (28%)
• Roof or gutter replacement (28%)
• Deck or patio upgrades (28%)

Updating a home, however, doesn't have to be a big sacrifice of time and money — even small projects can deliver noticeable results. In the same time period, an identical 98% of homeowners have also completed minor renovations, such as: 

• Installing new faucets or other fixtures (42%)
• Landscaping (41%)
• Installing new light fixtures (39%)
• Minor kitchen updates (38%)
• Minor bathroom updates (37%)
• Repainting individual rooms (35%)

Renovations allow homeowners to personalize their home and show off their creativity. But with inflation and tariffs making remodeling supplies more expensive, many homeowners are prioritizing essential repairs over those that are purely aesthetic. 

Homeowners are most likely to renovate:

• To repair damage (46%)
• To increase comfort (38%)
• To enhance the aesthetic appeal of their home (35%)
• To improve livability in their home (33%) 
• To personalize their home (31%)

A Majority of Homeowners Have Regrets About Their Renovations

Homeowners are eager to transform their spaces, but many find that their ideal vision needs to be reimagined in the face of real-world constraints. In fact, a third of homeowners (33%) have had to compromise on their renovation plans. 

Compromises often lead to remorse, with 58% saying they feel regret about at least one aspect of their renovation. Homeowners are most likely to wish they hadn't spent so much money (22%), but they also regret that:

• The renovation took too long (16%)
• They underestimated the disruption to daily life (13%)
• They went into debt (10%)
• They chose the wrong contractor (10%)

All generations feel remorseful about some aspects of their renovation, but it is most common among the youngest homeowners, whose inexperience can lead to unrealistic expectations. Three-fourths of Gen Z (77%) and two-thirds of millennials (68%) have regrets, compared to just 48% of boomers.

Nearly Half of Homeowners Plan to Spend More on Renovations in 2026

Home renovation shows often portray remodeling as a fast, affordable, and even entertaining process, but for most homeowners, that's far from their experience. About 83% of homeowners faced challenges during their renovation, with budget constraints topping the list at 28%.

In the face of budget limitations, homeowners were forced to make difficult decisions about where to cut back. Before sacrificing quality materials (29%) and contractors (28%), homeowners were most likely to reduce the scope of the project (43%).

Even after these reductions, 70% of homeowners went over budget on their latest project. About 44% exceeded their budget by at least $1,000, and 24% exceeded their budget by at least $5,000. 

Overspending reflects the reality that many renovation costs can’t be fully accounted for in initial budgets. Costs are unpredictable, and 51% of homeowners say they've ended up spending more on renovations than they planned since purchasing their home.

In 2025, more than 1 in 3 homeowners (38%) spent at least $5,000 on renovations, and nearly 1 in 4 (23%) spent at least $10,000.

As tariffs and inflation increase the cost of remodeling, many homeowners think they'll need to allocate more to their renovation budgets in the coming year. Nearly half of homeowners (46%) plan to spend more on their remodeling projects in 2026 than they did in 2025. 

Nearly half of homeowners (46%) plan to spend $5,000 or more on renovations in 2026, while one-fourth (28%) plan to spend $10,000 or more.

Bigger Repairs, Bigger Budgets: One-Third of Gen Z, Millennial Homeowners Spent $10,000 on Renovations in 2025

Young homeowners, in particular, are investing substantially in home renovations. In today's expensive market, these homeowners are likely priced out of newer, move-in ready properties, leaving them to purchase older properties in need of repair. 

More than half of millennial (51%) and Gen Z (53%) homeowners spent $5,000 or more on renovations last year, while one-third of millennials (32%) and Gen Z (33%) spent $10,000 or more. Just 30% and 19% of boomers spent the same, respectively. 

Younger generations incurred higher remodeling costs because their projects often involved some of the most expensive renovations. In the past five years:

• Gen Z (32%) and millennials (25%) were far more likely than boomers (9%) to remodel their living room. 
• Gen Z (21%) and millennials (10%) were far more likely than boomers (3%) to need mold remediation.
• Gen Z (18%) and millennials (11%) were far more likely than boomers (2%) to add a home extension.
• Gen Z (15%) and millennials (15%) were far more likely than boomers (8%) to replace siding.

Even after spending thousands on renovations, young homeowners aren't finished and are budgeting even more for home updates in 2026. 

Approximately 54% of millennial and 53% of Gen Z homeowners intend to spend $5,000 or more on renovations in 2026, while 37% of millennials and 39% of Gen Z intend to spend $10,000 or more. 

In contrast, boomers' homes are less likely to be in need of a major redesign. Consequently, only 38% and 23% of boomer homeowners plan to spend that much, respectively.

85% of Homeowners Had Unplanned Repair Costs in 2025

For most Americans, surprise repairs costs are an unavoidable part of homeownership. Approximately 85% of homeowners spent money on an unplanned repair in 2025, with 1 in 4 (26%) spending $5,000 or more and 1 in 6 (16%) spending $10,000 or more.

Homeownership requires constant investment, and many homeowners underestimate what it takes to keep their home in good condition. Half (50%) say they've spent more on unplanned repairs than they expected since purchasing their home. 

These costs are becoming even harder to manage as maintenance needs pile up and prices continue to rise. Surprise repair expenses cost 44% of homeowners more in 2025 than they did in 2024 as tariffs and inflation have pushed up the price of materials and labor.

Although 42% of homeowners have a dedicated savings account for home repairs and renovations, nearly 1 in 3 (32%) have less than $5,000. What's more, 58% of homeowners have nothing saved for emergency repairs.

With little reserves to fall back on, it's perhaps no surprise that almost 1 in 3 homeowners (30%) have gone into debt completing a home renovation project. More than 1 in 4 (27%) racked up at least $5,000 in debt, while 1 in 5 (20%) racked up at least least $10,000 of debt.

What's more, 1 in 4 homeowners (24%) struggled to pay off their bills after their renovation was complete — turning what should be an investment into a financial burden.

60% of Homeowners Say Tariffs Negatively Impact Their Ability to Make Repairs, Renovations

In 2025, the Trump administration raised tariffs on materials, such as steel, aluminum, and wood products, that are essential to home renovations. These tariffs led to widespread price increases, making everything from new appliances to kitchen cabinets, vanities, and upholstered furniture more expensive. 

With Americans already feeling pessimistic about housing affordability, it's no surprise 60% of homeowners feel tariffs negatively impact their renovation efforts. 

An identical 60% are concerned tariffs will continue to raise the price of home repairs in 2026. Specifically, homeowners expect tariffs to make the following unaffordable:

• Appliances (36%)
• Furniture (31%)
• Roofing materials (31%)
• HVAC (30%)
• Flooring (29%)
• Windows (28%)
• Cabinets (28%)

As tariffs inflate the price of home projects across the board, nearly 3 in 4 homeowners (73%) say they're having to adjust their renovation plans:

• 33% are doing more DIY work
• 27% are delaying their project until they have more saved
• 20% are reducing the scope of the project
• 20% are increasing their budget
• 14% are choosing more affordable materials

Elevated costs are squeezing all homeowners financially, but they are disproportionately affecting younger generations, whose starter homes are the ones most likely in need of repairs. Roughly 88% of Gen Z and 80% of millennial homeowners are adjusting their renovation plans in response to rising material costs.

With limited savings to fall back on, millennials (18%) and Gen Z (17%) are 4x more likely than boomer homeowners (4%) to finance more of the project than they originally planned. The younger generations (6%) are also 2x more likely than boomers (3%) to cancel the project entirely because of a lack of funds.

Half of Homeowners Have a Necessary Repair They Can't Afford

With rising costs cutting into homeowners' budgets, many are being more selective about how they spend their discretionary income. About 55% of homeowners say they are more likely to renovate because they need to, compared to 45% who say they want to.

This practical mindset shapes how homeowners prioritize projects, with a majority putting necessities over personal preferences. When determining which renovations to tackle, Americans are most likely to prioritize:

• Necessary repairs (59%)
• The cost and/or budget constraints (47%)
• The impact on daily living (40%)
• Personal preference or desire (33%)
• The potential home value increase (21%)

Even when homeowners focus solely on essential renovations, there's still a gap between what they need and what they can afford. Half of respondents (50%) say there are necessary home renovations they need right now that they can't afford.

It's no surprise, then, that 81% of homeowners have put off a home renovation at some point, with nearly half (47%) saying they delayed because of financial constraints. Homeowners also chose to wait because of: 

• The disruption to daily life (31%)
• Lack of time (29%)
• Difficulty finding reliable contractors (23%)

1 in 4 Homeowners Have Had to Pay for a 'Preventable' Repair Because of Delayed Maintenance

Homeowners struggle not only to afford one-time renovations and repairs, they also find it difficult to keep up with the ongoing maintenance required to keep their home in good condition. Nearly 2 in 3 homeowners (65%) have delayed or ignored a maintenance task in the past five years.

Regular maintenance typically isn't as expensive as a major renovation or repair, but the costs associated with these routine tasks can pile up into a significant financial burden for homeowners. Of those who have delayed a maintenance task, 38% say it was because they couldn't afford it. 

Although prohibitive costs keep some homeowners from completing home maintenance, others fall behind because they lack the knowledge or experience to know what's required. About 31% ignored a maintenance task because they didn't think it was urgent, and 16% didn't know it was needed. 

Other homeowners know the importance of home maintenance but don't make it a priority. About 1 in 5 homeowners (19%) say they simply forgot to make the repair.

Maintaining a home can be expensive, but failing to do so poses an even greater financial risk. More than 1 in 4 homeowners (29%) say they've needed a "preventable" repair because of delayed maintenance. 

Of those, 72% say their preventable repair cost them at least $1,000, while 44% say it cost them at least $5,000.

The Average Homeowner Spends 200+ Hours a Year on Renovation Projects

Maintaining a home demands more than just dollars. It costs homeowners their time, too.

Since purchasing their home, nearly half of homeowners have spent more time on renovations (49%) and unplanned repairs (47%) than they planned. 

Although the time commitment varies depending on individual properties, respondents report spending an average of 17 hours a month on home maintenance and renovation projects — or about 204 hours a year. 

Younger generations put even more sweat equity into their homes. In the average month, millennials and Gen Z homeowners spend 22 and 25 hours on home maintenance and repairs, respectively. That's nearly double the 12 hours baby boomers spend over the same time period.

It doesn't take long for homeowners to learn that renovations can be incredibly time consuming and stretch far beyond the projected timeline as bad weather, material shortages, and hidden damage cause delays.

In fact, nearly half of homeowners (48%) say their last renovation took longer than expected, and 29% experienced significant setbacks.

1 in 5 Homeowners Would Hire a Questionable Contractor to Save Money  — Including Nearly Half of Gen Z

When it comes to tackling major home projects, many Americans turn to professionals for support. About two-thirds of homeowners (62%) have hired a contractor for home renovations or repairs in the past five years. 

Homeowners save hours of planning and labor when they hire a contractor who can order materials, provide skilled labor, and manage the project timeline. But that convenience comes at a cost. About 46% of homeowners who hired a contractor spent $5,000 or more on their renovation — nearly double the 26% of DIYers who spent the same. 

Despite the cost, homeowners are usually satisfied with their decision to work with a professional. About 89% of those who hired a contractor were satisfied with the overall quality of the renovation, with just 30% saying their contractor cut corners.

However, the price of hiring a quality contractor pushes some homeowners to consider less reputable options. 

To save money, 1 in 5 homeowners (20%) would consider hiring a contractor with a questionable reputation, with the percentage jumping to 44% among Gen Z and 30% among millennials. Meanwhile, just 6% of boomer homeowners would do the same.

It's no wonder younger generations are more likely to have problems with their contractors.

About 33% of Gen Z and millennial homeowners each hired a contractor who failed to show up, compared to just 25% of overall respondents and 19% of boomers.

Additionally, 30% of Gen Z and 27% of millennials had to fire a contractor in the middle of a project, while only 18% of overall respondents and 10% of boomers did the same.

1 in 4 Homeowners Have Caused Damage Attempting a DIY Project

Hiring a contractor isn't the only option for homeowners needing renovations. About 69% of homeowners have completed a DIY home project in the past five years, with a near unanimous 96% saying they would attempt one under the right circumstances. 

The primary reason homeowners would DIY a home project is to save money — a concern that's grown in recent years as inflation and tariffs have raised prices and tightened budgets. About 66% of respondents cited cost savings as a reason to DIY — up from 52% in 2024. 

However, a DIY renovation isn't a surefire way to save money. The need for costly tools and materials may erode any savings, and inexperience may cause costly mistakes that require professional skills to fix. In fact, 45% of homeowners say they've spent more money on DIY projects than they planned since purchasing their home.

Although saving money primarily motivates homeowners to DIY, they would also attempt a project themselves because:

• They could handle it on their own (53%)
• They want to work at their own pace (37%)
• They want more control over the project (30%)
• They enjoy being crafty (28%)

Homeowners feel most comfortable attempting DIY projects that don't require special skills, such as assembling furniture (82%), landscaping (70%), painting (66%), and replacing fixtures (65%). 

However, some are bold enough to tackle more ambitious projects, such as a major kitchen renovation (27%), a roof replacement (22%), a home extension (21%), or an HVAC repair (19%).  

Rising repair costs, combined with constant exposure to YouTube and social media tutorials, give young homeowners, especially, the impression that they can manage complex renovations themselves. 

For example, 48% of Gen Z and 30% of millennials would attempt to build a home extension, compared to just 7% of boomers. Meanwhile, 44% of Gen Z and 27% of millennials would attempt an HVAC repair, compared to just 8% of boomers.

The prospect of saving hundreds of dollars may make DIY renovations seem like a smart financial move, but doing so without the proper skills is a risk. Approximately 1 in 4 homeowners (25%) — including a third of millennials (33%) and Gen Z (39%) — have caused damage by attempting a DIY project. 

In many cases, that damage leads to additional work and expenses. About 35% of DIYers had to make unplanned repairs after their renovation was complete, compared to just 29% of overall respondents.

Methodology

Clever Real Estate surveyed 1,000 American property owners about their views and experiences on home renovations and repairs. The survey was conducted Dec. 17 to 22, 2025.

About Clever Offers

Clever Offers is a platform that empowers sellers who need to sell quickly or for cash to compare their options and make informed decisions. Clever Offers' free service connects sellers with vetted cash buyers and top local realtors, allowing them to evaluate traditional cash offers alongside options such as cash offers with a second payment upon resale, listing on the MLS for as little as seven days, and standard open-market listings.

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