The renovation market is expected to have a better year in 2026. “Annual expenditures for improvements and maintenance to owner-occupied homes are projected to remain steady through the end of this year and into the middle of 2026, according to our latest Leading Indicator of Remodeling Activity (LIRA). The LIRA projects that year-over-year spending on home renovation and repair will rise by 2.4 percent in early 2026 before easing to 1.9 percent in the third quarter of next year,” said Rachel Bogardus Drew, director, remodeling futures program, Harvard University’s Joint Center for Housing Studies (JCHS).

This leads to some market movement. Todd Tomalak, leader of Zonda Building Product Research and Advisory Practice told Builder Magazine he sees 2026 as “the beginning of a thaw in home investment but led by ‘top income’ households who have been postponing projects but are now moving forward.” Additionally, shifting needs in an aging population unwilling or unable to move due to the housing market will lead to increased renovation. “Remodeling demand remains strong, due in part to healthy homeowner spending and an aging housing stock,” said Jim Parello, executive vice president of Emser Tile.