Home Renovation In 2025: 15 Facts & Stats To Consider Before Renovating

Table of contents

• Timely Home Renovation Stats & Facts For 2024 
• Evergreen Home Renovation Stats & Facts
• Next Steps To Home Renovations In NYC

Home renovation is fun. There’s art, design, sledgehammers. Bathroom renovations transform everyday spaces into mini-spas, and a well-implemented kitchen remodel can make every snack an event. But even the most mercurial clients aren’t commissioning renovation services every week. Home renovation is a large, sometimes-in-a-lifetime undertaking. And because of this, the topic can be mired in mystery.

To help anyone considering a remodel find transparency on key, high-level home renovation topics in 2025 and beyond, we’ve compiled 15 priority facts and home remodeling statistics offering valuable insights to point renovations in the right direction.

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[#Timely]Timely Home Renovation Stats & Facts For 2025[#Timely] 

1) The Price Gap Between Renovated And Unrenovated Homes Is Widening 

Current trends show a significant increase in homes reaching prime renovation age, creating substantial opportunities for investors and homeowners interested in fixer-uppers. As of 2022, approximately 60% of owner-occupied homes in the U.S. were built before 1980, with around 35% constructed before 1970. This aging housing market is ripe for renovation, particularly in high-demand areas like New York City, where the need for renovations is growing, while the availability of properties remains limited.

For those interested in exploring the potential of fixer-upper properties in NYC, consider reading: Are Fixer Uppers In NYC Worth The Work?

2) Americans Renovate Their Homes Roughly Every 3-5 Years

According to sources, Americans renovate their homes every 3 to 5 years, undertaking these projects roughly 2 to 3 times per decade, with larger renovations being slightly less frequent. This reflects a continual desire among homeowners to refresh their living spaces, driven by evolving needs and design trends (READ: Interior Design Trends For 2025).

3) Increased Spend On Home Renovations Despite Challenges

Despite challenges such as stagnant home sales, increasing labor expenses, and persistent supply chain disruptions, the home renovation sector is projected to hit $477 billion by Q3 2025.  That would be a 1.2% increase from last year, indicating growth after a slight overall downturn in 2024. In a recent article via WSJ entitled America Is Primed For A Home Renovation Resurgence, Abbe Will from the Remodeling Futures Program at the Joint Center for Housing Studies at Harvard University says this rebound suggests residential renovations and remodels are expected to inch past peak levels in the near future.

• Further Reading: How Tariffs Are Raising NYC Renovation Costs—And the Smartest Way to Manage Them

4) Larger Renovations On The Rise 

Despite rising costs and various uncertainties, the NKBA predicts larger professional-led renovations will be increasing 2.9% in 2025, opposed to DIY renovations - which are only projected to increase 0.6%. If you’re interested in large-scale renovation, learn more about our Full Home Renovations In NYC. 

5) Demand for Professional Assistance Remains High

According to Houzz’s 2025 U.S. Houzz State of the Industry report, the home renovation industry is expected to be in high demand in 2025, as specialty contractors and general contractors are expecting average revenue growth of 12.4% and 11.3%, respectively.  If you’re planning a renovation in NYC, starting sooner rather than later is wise—as contractors are booking up quickly, and waiting too long could mean delays in securing the right team for your project.

• Further Reading: What Is The Right Approach For Your NYC Apartment Renovation?
• ‍Further Reading: How To Start The Apartment Renovation Process In NYC

6) The Majority Of Americans Would Rather Renovate Than Move

Per sources, 61% of Americans would rather renovate than move, citing their desire to avoid uprooting family and routine as the main deterrent of moving. HIgh interest rates haven’t helped, although they did decrease around 4.5% by the end of 2024 - a trend that should maintain in 2025.

7) Kitchen Renovations Yield Biggest Returns 

Per Houzz & Home Study, during renovation projects, 92% of homeowners face challenges, with one-third struggling to find suitable service providers and 28% encountering difficulties in selecting the right products. These hurdles can lead to delays, budget overruns, and compromises in the quality of the final result. Therefore, it's crucial for homeowners to carefully research service providers and products to mitigate these risks and ensure a successful renovation. For an idea of the proper vetting process, read our blog about the 5 Most Asked Questions When Considering A Design-Build Firm In NYC.

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[#Evergreen]Evergreen Home Renovation Stats & Facts[#Evergreen] 

8) Kitchen Renovations Yield Significant Returns

According to updated 2024 national averages, minor kitchen renovations warrant 96% ROI, opposed to 49% for a major remodel - still significant relative to other home renovations. These statistics highlight the importance of investing in tangible renovations and reassures homeowners that upgrading their kitchen not only improves their living space but also provides a financial return in the long term.

9) Not All Contractors Are Created Equal

With various styles and options to select from, choosing a contractor in New York City is not easy. When looking to hire a contractor for a NYC renovation, consider the following 3 Biggest Mistakes People Make When Choosing General Contractors, along with the differences between design-build vs design-bid-build contractors. Also make sure to do research up front and get quotes from multiple contractors. 

10) Timelines Are Not Concrete

When renovating, the initial timeline should be considered a best case scenario. Even the most thorough contractors, who plan extensively ahead of time, can run into an unexpected hiccup that extends project length. For instance, see these Common Surprises When Renovating An NYC Apartment to understand certain unforeseen derailments simply cannot be planned for. Furthermore, the NKBA suggests timeline issues will only continue to escalate from highs seen in recent years, with product and labor shortages being the key factor. Quality contractors will always be transparent as possible about timeline issues, keeping everyone privy to all updates in a timely manner.

11) NYC Homes Are 90-years-Old, On Average

Renovations are on the rise for a reason. According to MHN, the median age of a residential building in NYC is about 90 years, with many of the properties deriving from the construction boom between 1900 and 1920 which catered to the city’s 63% rise in population.

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12) Gut Renovations And Home Renovations Are Not The Same

A remodel or renovation can include updating specific aspects of the home, without completely tearing down the current version of the room looking to be updated. A gut renovation requires tearing down the entire property, down to the studs. More often than not, full gut renovations are not needed. For more information, read our full breakdown on Gut Renovations In NYC 101.

13) Choose Appliances Early In Renovation Process

Appliances often end up being a focal point in their space, which is why they should be chosen up front in the renovation process and incorporated into the design early. A full-service design-build firm will actually guide clients through the selection of appliances, making sure these key pieces offer both form and function upon installation at the outset of construction.

• Further Reading: Best Appliances For A Luxury Kitchen Renovation In NYC

14) Consider Resale Value 

While people often renovate for personal reasons, with no intent to sell, considerations beyond personal taste should still be weighed. While there are various renovation strategies to consider that will maximize resale value, make sure decisions aren’t drastic and too unique to sell down the line.

15) Check For Code & Building Requirements  

Before renovating, research code and permit requirements for your home or building. Otherwise your grandiose ideas may get squashed at a very inopportune time. A reputable design-build firm will help guide this entire process on behalf of their clients.

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[#Next]Next Steps To Home Renovations In NYC[#Next]

Looking to learn more about New York City home renovations before diving into your own? Find priority content in our Learning & Design Center, timely insights on our NYC Renovation & Design Blog and before + after breakdowns of Our Work. Or, if you’re ready to renovate, contact us today and start the process with one of our design consultants.