Amid higher interest rates and a tight housing market, U.S. homeowners are increasingly choosing to renovate rather than relocate — and many are doing so under financial and emotional strain, according to a newly released nationwide survey.
A report released by Block Renovation, based on responses from more than 1,000 homeowners, paints a detailed picture of the home renovation experience in 2025.
Findings show that the majority of homeowners are digging into their savings to fund home upgrades while battling budget overruns, delays and emotional stress.
Roughly 73% of respondents said they used personal savings to cover renovation costs, significantly outpacing those who relied on credit cards (17%) and home equity loans (15%).
Only about half of homeowners funded their projects exclusively with savings, suggesting that many are combining multiple financial tools to complete their renovations.
Even with careful budgeting, 37% reported exceeding their initial spending plans. Cost overruns were most often linked to the rising price of materials (58%) and labor (40%).
Renovating to avoid moving
Renovation has become a financial necessity for many.
Sixty-four percent of respondents said they chose to renovate because they love their current home, while 12% said they were priced out of buying elsewhere — a number that jumped to 17% among millennials.
In the western U.S., where housing markets remain highly competitive, 16% said high costs were the main reason they chose to stay and remodel rather than move.
“Homeowners invest deeply in their renovations — not just financially but also emotionally,” said Julie Kheyfets, CEO of Block Renovation. “People are making deeply personal decisions to adapt their homes to their evolving needs, and renovating is one of the most expensive and stressful journeys someone might undertake.”
Mental fatigue
The emotional toll of renovation is clear. More than 85% of homeowners said the process caused stress, while 57% reported experiencing what the report termed “renovation fatigue” — a form of burnout brought on by delays, disruptions and the sheer number of decisions involved.
Millennials reported the highest levels of stress, with 67% describing it as moderate to high, and 40% said their renovation projects strained personal relationships. In comparison, only 15% of baby boomers reported relationship strain.
Living through construction was the top stressor (55%), followed by project delays (35%) and the pressure of making design choices (29%).
Building trust, new technology
Finding a trustworthy contractor is also proving to be a challenge for homeowners.
More than half of all survey respondents relied on personal referrals, a number that rose to 70% among baby boomers and 68% among Gen X.
Millennials, however, were more likely to use search engines or digital platforms, with 45% turning to online tools to find their contractor.
While new technology tools are beginning to enter the renovation space, they remain underused. Only 9% of all homeowners said they had used artificial intelligence tools during their projects. That figure rose to 16% among millennials.
Among those who relied on AI, the most common applications were for design and layout planning (73%), cost estimations (52%), and virtual consultations or mockups (43%).
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