2025 Houzz Home Study: Kitchen, Bathroom, and Spending Trends

The 2025 Houzz Home Study reveals valuable insights into how homeowners across the United States approached renovation projects in 2024 and what they plan for 2025. Drawing on survey responses from more than 20,000 U.S. homeowners, the report highlights spending trends, project priorities, and the factors influencing decision-making in today’s home improvement market.

In 2024, 54% of homeowners undertook renovations, with a median spend of $20,000. While this figure represents a decline from 2023’s $24,000 peak, renovation activity remains historically strong. Both kitchen and bathroom remodels were the most popular project types, each undertaken by 24% of renovating homeowners. Smaller spaces saw the most significant jump in investment, with small kitchen remodels rising 9% to $35,000 and small primary bathrooms increasing 13% to $17,000.

The study also found that homeowners are shifting their financing habits. Savings funded 84% of projects, while credit card use dropped by eight percentage points to 29%. High-end renovations continue to make a significant impact, with large luxury kitchens starting at $150,000 and upscale bathrooms beginning at $70,000.

For homeowners planning their next renovation, these findings provide a clear picture of market trends, helping guide decisions on where to invest, how to budget, and which projects may deliver the greatest long-term value.

Kitchen and Bathroom Remodeling Trends Driving Home Investments

Kitchens and bathrooms remain the primary focus for homeowners looking to enhance both functionality and aesthetics. Major kitchen remodels, which typically involve replacing all cabinets and appliances, continue to hold firm. Large kitchen remodels maintained a median spend of $55,000 in 2024, while smaller kitchens saw a 9% increase to $35,000. At the high end, large kitchens start at $150,000, with upscale small kitchens beginning at $90,000.

Bathrooms matched kitchens in popularity for the first time, highlighting a shift in homeowner priorities. Large primary bathroom remodels held steady at $25,000, while small primary bathrooms saw the largest percentage increase, rising 13% to $17,000. In the luxury category, large bathrooms reached $70,000, and smaller ones reached $45,000.

Meanwhile, other areas of the home saw reduced spending. Living rooms, bedrooms, dining rooms, and home offices all experienced double-digit declines in median renovation spend. This suggests that homeowners are choosing to focus their resources on the spaces that offer the most daily utility and potential resale value.

For homeowners weighing their options, the data reinforces the benefit of prioritizing key rooms. Upgrading kitchen finishes, improving storage solutions, or enhancing bathroom layouts can deliver both immediate enjoyment and long-term return on investment.

Funding Strategies and Generational Renovation Patterns

The 2025 Houzz Home Study shows a noticeable shift in how homeowners are paying for renovations. Personal savings remain the leading funding source, used by 84% of respondents. Credit card use dropped to 29%, a significant decrease from the prior year. Secured home loans, including home equity lines of credit, funded 12% of projects, while cash from home sales supported 10%. Fewer homeowners relied on gifts, inheritances, or insurance payouts to cover costs.

Generational differences also play a major role in renovation trends. Baby Boomers lead the market, making up 59% of renovating homeowners. Gen Xers account for 29%, Millennials account for 8%, and Seniors account for 4%. Millennials are increasing their kitchen budgets, rising from a $15,000 median in 2023 to $20,000 in 2024. Seniors made the largest gains in bathroom spending, nearly doubling their median budget to $15,300. Gen Xers are most likely to take on luxury-level projects, with top-tier spending reaching $150,000.

The most common motivations for renovation include finally having the time (40%) and the financial means (35%). A strong commitment to long-term homeownership also influences decisions, with 61% of renovating homeowners planning to stay in their homes for at least 11 more years.

For anyone considering a renovation, understanding both the financial strategies and generational approaches to upgrades can help in setting realistic goals, choosing the proper funding method, and timing the project effectively.

What the 2025 Houzz Home Study Findings Mean for Your Next Project

The 2025 Houzz Home Study makes it clear that kitchens and bathrooms remain the cornerstone of home improvement investments, while overall renovation spending has softened slightly from last year’s peak. Smaller spaces are seeing a surge in upgrades, showing that homeowners are focusing on maximizing function and style regardless of square footage.

The movement toward using savings over credit cards points to a more deliberate approach to financing, particularly in light of higher borrowing costs. At the same time, strong demand for high-end projects shows that many homeowners still value premium materials, finishes, and custom solutions when it comes to enhancing their homes.

Generational insights add further context, with Baby Boomers driving the majority of renovations, Millennials increasing their investment in kitchens, and Seniors committing more resources to bathrooms. Across all age groups, the goal is clear: create living spaces that are both functional and beautiful, tailored to the needs of the household now and in the years to come.

For homeowners preparing to renovate in 2025, the takeaway is to focus on high-value areas, develop a realistic budget, and select the most appropriate funding sources for the scope of work. For expert advice and personalized recommendations, contact Scharm Floor Covering to schedule your in-home flooring consultation.