There’s almost no such thing as a cheap home project anymore. But that hasn’t stopped homeowners from investing—they’re just doing it differently, and more deliberately.
After analyzing Angi’s 2024 State of Home Spending report, digging into the 2025 Houzz & Home Study, and speaking with Angie Hicks herself, I saw a trend emerge: today’s homeowners are embracing the real costs of homeownership—not just financially, but emotionally and strategically.
Whether you’re a first-time buyer or decades into your mortgage, here’s what 2025 is teaching us about where and why homeowners are spending—and how they’re making it all work.
Spending Is Down, But Mean Homeowners Aren’t Backing Off
In 2024, home project spending dropped 12% overall. But that dip doesn’t reflect disinterest. According to Angi, 93% of homeowners still planned to take on projects in 2025. The Houzz report echoed that sentiment: while large-scale remodels slowed, project volume remained strong.
What changed? Mindset.
Rather than pouring money into massive renovations, homeowners are being intentional:
- Prioritizing essential maintenance
- Refreshing spaces (think cabinet paint over full gut jobs)
- Adding practical, comfort-forward upgrades like better lighting, air filtration, or soundproofing
This new approach isn’t just frugal. It’s responsive. Homeowners are adapting to inflation, interest rate pressure, and rising labor costs by getting more creative—and more strategic.
They’re also responding to the emotional weight of homeownership. After years of uncertainty, people are building spaces they can count on—not just showcase.
Designed by Robin Bryant; built by Factor Design Build. Photography by Kimberly Gavin.
One growing strategy is phasing out projects across quarters or seasons. Instead of blowing their budget on a top-to-bottom kitchen overhaul, many homeowners are swapping countertops one month and refinishing cabinets the next. It’s a slower route, but one that prioritizes cash flow and flexibility.
Others are leaning into the power of cost forecasting apps and home maintenance trackers like Thumbtack, HomeZada, and Centriq to keep repair costs from blindsiding them.
The Drop in Emergency Repairs Isn’t Just a Victory Lap
Angi reported that emergency spending dropped to $978 in 2024—a major decrease from $1,667 in 2023. At face value, this suggests preventive maintenance is working.
But there’s nuance. The Houzz study revealed that:
- 22% of homeowners used credit cards to finance renovations
- 11% dipped into emergency savings
This suggests that for some households, it’s not that emergencies aren’t happening—it’s that people can’t afford to fix them right now.
We should celebrate the move toward proactive home care, yes. But we also need to acknowledge the quiet cost of deferred maintenance. When homeowners skip urgent repairs to avoid debt, the long-term financial and safety risks compound.
Emergency spending isn’t always a direct proxy for “fewer emergencies.” Sometimes it reflects exhaustion. Tight cash flow. The mental load of choosing between patching a leak and making rent.
Some homeowners are getting ahead by building emergency maintenance budgets into high-yield savings accounts. Others are exploring insurance riders or service contracts to help absorb the shock of large mechanical failures. These aren’t glamorous tools—but they buy breathing room when it matters most.
Homeownership isn’t just about pride—it’s about responsibility. And sometimes, that means budgeting for the boring stuff before the pretty stuff.
Renovating Isn’t Just for the Privileged Few
Homeownership has never been more expensive—but that hasn’t stopped first-time buyers. They’re just showing up differently. Today’s first-time homeowners are:
- Older than previous generations
- Better at budgeting
- More likely to research, compare, and delay projects until they’re financially ready
Millennials led in maintenance spending in 2024, and Gen Z outpaced all other groups in project volume. This shows a shift in how newer homeowners are treating their properties—not as passive investments, but as active, adaptive spaces.
They’re also redefining what success looks like. It’s no longer about granite countertops or open-concept living. For many, success is:
- Creating a safe, quiet place to work remotely
- Making space for intergenerational living
- Designing low-maintenance interiors that reduce household labor
- Choosing homes that support sustainability, resilience, or self-sufficiency
This is a generation that values adaptability over aesthetics. They’re investing in composting systems, air purifiers, and modular furniture. They care less about what will photograph well—and more about what will function for their lives.
They’re also big fans of secondhand sourcing, energy rebates, and DIY mini-projects. There’s pride in stretching a dollar, but also power in knowing where to spend it: HVAC, insulation, and air sealing have all risen as top investment priorities.
Owning a home used to mean “you made it.”
Now, it’s more like, “you better make a plan.”
The Real ROI: Comfort, Function, and Staying Put
The return-on-investment conversation is shifting. More homeowners are investing in:
- Aging-in-place upgrades
- Energy-efficient systems
- Outdoor living spaces that support year-round use
- Accessibility-focused layouts
Why? Because many no longer view their homes as transitional assets. A combination of high interest rates, limited inventory, and rising costs have locked many people into their current homes—whether or not they originally intended to stay long-term.
That shift changes everything. When you expect to stay, you invest differently. You care more about:
- Daily comfort than resale appeal
- Functionality over flash
- Smart design over square footage
For families with kids, it might mean redoing a bathroom so everyone can get ready faster. For aging couples, it might mean replacing stairs with ramps and rethinking lighting. These aren’t glamorous upgrades, but they are the ones that let people age in dignity and stay safe in their homes.
The Houzz study found that 61% of homeowners renovated simply because they “couldn’t stand” their outdated spaces anymore—not to increase home value.
And honestly? That’s more than valid. A functional kitchen or a mold-free bathroom is ROI in peace of mind.
Budgeting Smarter Is the New Remodeling Power Move
Angi found that over half of homeowners are actively budgeting for their 2025 projects. But even those with limited cash flow are finding ways to move forward:
- 37% paid in cash (Houzz)
- 23% used credit cards
- 14% leaned on home equity loans
Some are planning projects in phases. Others are choosing one high-impact upgrade per year. And younger homeowners are particularly savvy when it comes to trade-offs—knowing when to splurge (think HVAC) and when to wait (new tile).
Budgeting isn’t just a spreadsheet game anymore. It’s emotional triage. What can I afford to fix now? What can wait? And what happens if I’m wrong?
To manage this, homeowners are leaning on tools like:
- Cost calculators from Angi, Houzz, and NerdWallet
- Visual timelines from apps like Houzz Pro
- Community forums and contractor review platforms
- Subscription maintenance services like Setter or Hippo Home
Planning doesn’t just prevent debt. It creates breathing room. That margin makes it possible to enjoy your home instead of resenting it.
Good design doesn’t mean excess. It means balance. And good homeownership means knowing when to dream big—and when to call the plumber first.
A Home You Can Afford to Live In
Racing Green. Photography by Chris Gonzales, Chaos Media Realty.
Renovation doesn’t just cost money. It costs energy, time, decision-making bandwidth, and often, emotional resilience.
But what I’m seeing—in the data, in my interviews, and in the stories homeowners share with me—is resilience in return.
The smartest project in 2025 might not be a kitchen redo or a bathroom expansion. It might be fixing the subfloor that creaks every time your toddler walks across it. It might be saving up for a furnace before the old one quits in February. It might be patching the roof and patching your confidence at the same time.
Because when your home works for you, it frees you to live more fully in it.
And that’s the real upgrade.
So if you’re tired of feeling like you have to choose between fixing your home and affording it, know this: you’re not alone. And your decision to invest wisely—not just ambitiously—is a radical, grounded, and very 2025 kind of success.
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