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From March 2026 through April 2026, the Pearl research team analyzed homeowner renovation behavior data from more than a dozen industry reports, cost surveys, and consumer studies, including Harvard's Joint Center for Housing Studies (JCHS) Leading Indicator of Remodeling Activity,1 Angi's State of Home Spending,2 Zonda's Cost vs. Value Report,3 the National Association of Realtors Remodeling Impact Report,4 and U.S. Department of Energy performance data.6 The figures draw from expenditure reports and historical trend data spanning 2022 to 2026. The market this analysis describes is adjusting to elevated interest rates and prioritizing long-term performance value over short-term cosmetic upgrades.
The total U.S. home improvement market is projected to reach $524 billion in 2026.1 While large-scale kitchen remodels remain a staple, participation rates show that replacement-level maintenance, specifically focused on the home envelope, now reflects an increasing portion of the average homeowner's activity. The table below ranks projects by the share of homeowners completing them, not by cost or resale value.
Most Popular Home Renovation Projects in 2026, Ranked by Homeowner Participation Rate
| Renovation project | Participation rate | Primary motivation | Pearl SCORE™ performance category |
|---|---|---|---|
| Interior painting | 34% | Cosmetic refresh | None |
| Smart home tech (security/thermostats) | 28% | Convenience and efficiency | Operations, Energy (partial) |
| Kitchen remodel | 26% | Lifestyle and resale | Low |
| Bathroom remodel (minor) | 24% | Lifestyle and function | None |
| Landscaping and outdoor living | 19% | Recreation | Resilience (fire-resistant native plants and hardscaping) |
| Window and door replacement | 15% | Efficiency and comfort | Operations, Comfort, Resilience |
| Insulation and air sealing | 12% | Comfort and energy savings | Operations, Comfort |
| Solar and battery installation | 8% | Energy independence | Energy, Resilience |
| HVAC system replacement | 21% | System failure and efficiency | Operations, Comfort |
| EV charging installation | 5% | Necessity and future-proofing | Energy |
Note. Participation rate = share of homeowners completing this project type in the prior 12 months. Sources: Angi (2025)2; JCHS Harvard LIRA (2026)1; NAR Remodeling Impact Report (2025)4; NAHB Remodeling Market Index (2025).5
Interior painting is the most completed renovation at 34% of homeowners and the project with zero Pearl SCORE™ pillar impact. Participation rate is not a proxy for performance value.2
HVAC replacement has climbed from eighth to fourth over four years and is the highest-performance renovation in the top five, affecting Operations and Comfort pillars. Its rise reflects aging housing stock and IRA incentive demand, not a trend cycle.2
Smart home technology at 28% participation is the fastest-rising category by homeowner count.2 Its Pearl SCORE impact depends on integration with higher-performance systems. Standalone, it delivers convenience more than performance.10
Kitchen remodels are declining in rank despite 26% participation. A 72% resale ROI3 and zero pillar impact make them the clearest example of aesthetic spending that does not translate into home performance value.10
The shift since 2022 is marked by the rise of invisible performance projects. In 2022, homeowners focused on home offices and outdoor patios following pandemic-era lifestyle changes. By 2026, the focus has shifted to lowering the cost of homeownership. Performance-driven projects, including HVAC, solar, and insulation, have climbed an average of five positions in priority rankings over the last four years.
Renovation Priority Ranking Shifts, 2022 vs. 2026
| Project category | 2022 rank | 2026 rank | Trend driver |
|---|---|---|---|
| HVAC and heat pumps | 8 | 4 | IRA rebates and rising energy costs; aging housing stock accelerating replacement cycle |
| Smart home tech | 9 | 2 | Low friction and low cost; fastest-rising category by participation rate |
| Kitchen remodels | 1 | 3 | High material costs and interest rates compressing discretionary spending |
| Home office | 2 | 10 | Hybrid work stabilization; pandemic-era demand fully unwound |
| Outdoor and deck | 3 | 5 | Pandemic-era surge fully unwound; normalizing to pre-2020 levels |
| Insulation and air sealing | 15 | 8 | Climate adaptation; comfort complaints driving demand independent of energy savings framing |
| Solar and battery storage | 12 | 7 | Energy independence narrative; battery cost reductions; net metering policy stability |
| EV charging | NR | 9 | Went from untracked to top 10 in four years; fastest category emergence in the dataset |
Note. Rankings based on share of homeowners completing each project type in the prior 12 months. NR = not ranked in top 15. Sources: JCHS Harvard LIRA annual reports (2022 to 2026)1; Angi State of Home Spending annual editions2; NAHB Remodeling Market Index.5
HVAC and heat pumps climbed from eighth to fourth, the single largest consistent rise of any infrastructure category. No other performance project has moved upward every year since 2022.1
Home office dropped from second to tenth, completing the full unwind of pandemic-era spending. Renovation trend data from 2021 to 2022 overstates lifestyle and discretionary categories relative to what homeowners are actually doing in 2026.1
Smart home technology rose from ninth to second, the largest single jump in the dataset. Its ascent is participation-led, not performance-led, reflecting a shift in how homeowners define an upgrade toward low-cost, immediate utility.2
Insulation and air sealing moved from fifteenth to eighth, the fastest-rising performance category by ranking positions gained. The rise is demand-driven rather than marketing-driven, making it a structurally durable trend.1
Spending intensity has increased as homeowners opt for quality over quantity. The average household is completing fewer projects than during the peak pandemic years but spending more per project to ensure durability and efficiency. Over half of U.S. homeowners are actively renovating in 2026 despite elevated interest rates and economic uncertainty.
Per-Household Renovation Statistics, 2026 National Averages
| Metric | 2026 national average |
|---|---|
| Annual spending per household | $14,200 |
| Average projects completed per year | 2.8 |
| Share of households completing 1+ projects | 56% |
| Primary funding source | Savings and cash (48%) |
| Total U.S. homeowner renovation market | $524 billion |
Sources: Angi (2025)2; JCHS Harvard LIRA (January 2026).1
At $14,200 average annual spend, homeowners are investing more per household than any prior year while completing only 2.8 projects on average. Larger per-project budgets are displacing volume, reflecting a shift toward durability and efficiency over quantity.2
Cash and savings fund 48% of renovation activity, meaning the market is less rate-sensitive than in prior cycles. Renovation demand in 2026 is more stable but more exposed to savings rate fluctuations than to mortgage rate movements.2
The $524 billion total market reflects 11% growth from $472 billion in 2022. That growth is disproportionately concentrated in performance and infrastructure categories relative to their participation rates.1
There is a persistent tension between what a project costs and what it returns at resale. In 2026, envelope projects, including attic insulation, roofing, and windows, continue to offer the highest ROI, while major cosmetic remodels offer the worst. The table below presents cost ranges, national averages, and resale ROI side by side.
Average Renovation Costs and Resale ROI by Project Type
| Project type | Average cost | Resale ROI | Context |
|---|---|---|---|
| Attic insulation | $2,500 | 105% | Highest ROI in the dataset; low cost, immediate comfort impact, strong resale signal |
| HVAC heat pump conversion | $12,000 to $18,000 | 95 to 102% | IRA credits reduce net cost by $2,000 to $3,200; strong ROI that improves meaningfully with incentives applied |
| Garage door replacement | $4,500 | 100%+ | Persistent top-ROI cosmetic project; zero Pearl SCORE pillar impact |
| Solar PV system | $20,000+ | 85%* | Resale ROI understates true value; operating savings of $1,400 to $2,000 per year captured over ownership, not at sale |
| Bathroom remodel | $12,000 to $25,000 | 74% | Stable demand; no Pearl SCORE pillar impact |
| Minor kitchen remodel | $28,000 | 72% | Declining ROI as material costs rise; no Pearl SCORE pillar impact on cosmetic scope |
| Window and door replacement | $8,000 to $20,000 | 68% | Envelope improvement (Operations, Comfort, Resilience); resale ROI modest; lived value high |
| Major kitchen remodel | $80,000+ | 38% | Worst resale ROI in the dataset; aspirational demand exceeds financial logic |
Note. * Solar ROI excludes federal tax credits, which reduce net cost by 30%. Resale ROI = national average cost recouped at point of sale. Sources: Zonda Cost vs. Value Report (2025)3; EnergySage (2026)7; U.S. Department of Energy6; EPA ENERGY STAR.8
Attic insulation has the highest ROI in the dataset at 105% on a $2,500 average project cost.3 The combination of low cost, immediate comfort impact, and strong resale signal makes it the most financially defensible performance upgrade available.
The $2,000 to $3,200 federal credit reduces effective cost to $9,000 to $15,000 for most 2025 to 2026 installations.6
Major kitchen remodels return 38 cents on every dollar at resale on an average $80,000-plus project.3 The data suggests kitchen remodel spending is driven more by aspiration than by resale return.
Solar PV resale ROI of 85% understates its true financial value.3 Homeowners who install solar and stay ten years recover full cost through $1,400 to $2,000 per year in operating savings, independent of any sale premium.7
Gen Z and millennials are leading the charge in values-based renovating, prioritizing sustainability and smart technology, while boomers focus on aging in place and maintenance. Gen X occupies the middle ground: the highest spenders in the dataset, focused on lifestyle and luxury upgrades, and primarily funded through home equity. These differences reflect distinct financial positions, ownership timelines, and relationships with sustainability.
Generational Differences in Renovation Spending, Priorities, and Behavior
| Metric | Gen Z and Millennials | Gen X | Boomers |
|---|---|---|---|
| Avg annual renovation spend | $12,500 | $18,200 | $11,000 |
| DIY participation rate | 42% (highest of any generation) | 22% | 15% (minimal) |
| Sustainability as primary driver | 68% | 41% (secondary) | 28% (cost savings only) |
| Top project priority | Smart tech and solar | Kitchen and luxury upgrades | Windows and maintenance |
| Primary renovation motivation | Sustainability and resale value | Lifestyle and comfort | Aging in place |
| Primary funding source | Savings and BNPL | Home equity | Savings and retirement funds |
Sources: Angi (2025)2; Houzz Renovation Trends Study (2025)11; NAR Profile of Home Buyers and Sellers (2024)4; Bureau of Labor Statistics time use data.12
Homeowners are increasingly pairing solar panels with battery storage and smart load controls, creating home energy systems that can shift consumption, store excess generation, and reduce dependence on the grid. Adoption is no longer just about being green; it is about managing Time-of-Use rates and grid volatility.7 The motivation data tells a more nuanced story: approximately 60% of homeowners completing energy-efficient upgrades are primarily motivated by cost savings, not environmental values. The environmental narrative resonates with 25% of the market; the financial narrative reaches all of it.9
Energy Efficiency and Sustainability: Adoption Rates, Savings, and Motivation, 2026
| Metric | 2026 figure | Context |
|---|---|---|
| Heat pumps (share of HVAC replacements) | 21% | IRA rebates and rising energy costs; adoption not primarily driven by environmental values |
| High-R insulation (share of retrofits) | 26% | Comfort-first motivation; drafts and temperature variance cited more often than energy savings |
| EV charging, Level 2 (share of households) | 14% | Need-driven; EV owners installing home charging as public network access remains inconsistent |
| Smart load control and energy management | 12% | Time-of-use rate management driving adoption; amplifies savings from HVAC and solar |
| Solar PV (share of new installations) | 8% | Energy independence narrative; battery pairing now standard in most new residential installs |
| Annual savings: heat pump vs. gas furnace | $300 to $950 | DOE; range reflects climate zone and prior system type |
| Annual savings: solar, national average | $1,400 to $2,000 | NREL and EnergySage 2026; high-rate states reach $2,700 to $3,200 |
| Annual savings: insulation and air sealing | $200 to $600 | EPA ENERGY STAR; 15% average reduction in heating and cooling costs |
| Annual savings: smart energy management | $100 to $640 | ENERGY STAR and Green Builder Media |
| Motivated primarily by cost savings | ~60% | Bipartisan Policy Center, 2024 |
| Motivated by environmental values | ~25% | Bipartisan Policy Center, 2024 |
| Aware of IRA incentive programs | ~42% | Bipartisan Policy Center, 2024; majority of eligible homeowners unaware of available credits |
| Used a rebate or incentive on qualifying upgrade | ~18% | Bipartisan Policy Center, 2024; significant utilization gap relative to awareness rate |
Sources: U.S. Department of Energy6; NREL and EnergySage (2026)7; EPA ENERGY STAR8; ENERGY STAR and Green Builder Media13; Bipartisan Policy Center IRA consumer survey (2024).9
Heat pumps now account for 21% of HVAC replacements.⁵ The IRA did not change what homeowners want; it changed what they can afford. Incentive availability and system failure, not environmental values, are the primary adoption drivers.⁹
Approximately 60% of homeowners completing energy-efficient upgrades are primarily motivated by cost savings; only 25% cite environmental values as their primary driver. The financial case reaches the full market; the environmental narrative reaches a quarter of it.⁹
Only 42% of homeowners are aware of IRA incentive programs for heat pumps, insulation, and solar. Among those who completed a qualifying upgrade, only 18% used a rebate or incentive. The gap between available incentives and actual utilization is the largest untapped lever in the residential energy efficiency market.⁹
Insulation and air sealing leads all energy efficiency categories by retrofit share at 26%, higher than heat pumps at 21% and solar at 8%.⁸ Comfort is cited as the primary adoption driver more often than energy savings, which has direct implications for how the category should be marketed.⁹
A homeowner who completes heat pump, solar, insulation, and smart energy management upgrades can expect combined annual operating savings of $2,100 to $4,190.6,7,8,13 At average project costs, that stack pays back in 10 to 14 years against a 25 to 30-year useful system life.
The renovation decisions documented in the preceding sections show up in homes currently listed for sale, but not uniformly. Some 2026 homes carry heat pumps, solar panels, and smart energy management installed over years of performance-focused investment. Others have fresh interior paint, a renovated bathroom, and a new garage door. Both can list at similar prices. Neither renovation profile is visible in a listing photo.
Interior painting is the most popular renovation in 2026 at 34% of homeowners. It affects zero Pearl SCORE™ pillars. HVAC replacement sits at 21% and affects two pillars, reducing annual operating costs by $300 to $950.6 These two renovations look identical in a listing photo. Pearl SCORE translates what is invisible on a home tour into a standardized, comparable rating across five performance pillars.
2026 Renovation Projects Mapped to Pearl SCORE Pillars
| Renovation project | 2026 participation | Pearl SCORE pillar(s) and rationale |
|---|---|---|
| Interior painting and cosmetic work | 34% | None - Zero pillar impact; the most commonly completed renovation in 2026 |
| Smart home energy management | 28% | Operations, Energy - Appliance and HVAC load optimization (Operations); grid, solar, and battery coordination (Energy) |
| Kitchen remodel | 26% | None (cosmetic scope) - Induction appliance upgrade adds minor Safety and Operations benefit; all other kitchen scope adds none |
| Bathroom remodel | 24% | None - No measurable impact on any Pearl SCORE performance pillar |
| HVAC and heat pump replacement | 21% | Operations, Comfort - System efficiency (Operations); consistent temperature delivery across all rooms (Comfort) |
| Landscaping and outdoor living | 19% | None - No Pearl SCORE pillar impact |
| Window and door replacement | 15% | Operations, Comfort, Resilience - Thermal envelope (Operations); noise and temperature stability (Comfort); storm resistance (Resilience) |
| Insulation and air sealing | 12% | Operations, Comfort - Building envelope performance (Operations); elimination of drafts and temperature variance (Comfort) |
| Solar and battery storage | 8% | Energy, Resilience - Generation and storage (Energy); backup power during grid outages (Resilience) |
| EV charging (Level 2) | 5% | Energy - EV readiness is an Energy pillar feature aligned to DOE Zero Emissions Building standard |
Note. Pillar definitions per Pearl SCORE Methodology White Paper (November 2025)10: Safety = IAQ, CO, toxic materials, water quality; Comfort = temperature consistency, noise, humidity, daylighting; Operations = building envelope, HVAC systems, air sealing, ductwork, appliances; Resilience = storm and outage preparedness, backup systems, structural durability; Energy = solar generation, battery storage, EV readiness, smart energy management.
Pearl SCORE™ rates every single-family home in the U.S. on a 1,000-point scale across five pillars of home performance that affect everyday life: Safety, Comfort, Operations, Resilience, and Energy.10 Pearl SCORE draws on public records and data provided by homeowners, including HVAC system type and vintage, documented insulation and air sealing work, and water system improvements.10 When a homeowner claims their home in the Pearl app and adds supplemental information, that data becomes part of the home’s performance profile, giving any buyer who looks it up additional context beyond what public records alone provide.
As a home buyer, you can access a free Pearl Home Performance Snapshot via the Pearl app to see what public records reveal about any home’s baseline performance across all five pillars. If the homeowner has added their own performance data, that information is part of the profile too, giving you more to work with before you ever schedule a tour or order an inspection.
1. Joint Center for Housing Studies of Harvard University. (2026, January). Leading indicator of remodeling activity. https://www.jchs.harvard.edu/press-releases/remodeling-growth-set-downshift-late-2026
2. Angi. (2025). State of home spending. https://www.angi.com/press/angis-2025-state-of-home-spending-pulse-report
3. Zonda Media. (2025). Cost vs. value report 2025. https://zondahome.com/2025-cost-vs-value-report/
4. National Association of Realtors. (2025). Remodeling impact report. https://www.nar.realtor/research-and-statistics/research-reports/remodeling-impact
5. National Association of Home Builders. (2025). Remodeling market index. https://www.nahb.org/news-and-economics/housing-economics/indices/remodeling-market-index
6. U.S. Department of Energy. (2025). Air-source heat pumps. https://www.energy.gov/energysaver/air-source-heat-pumps
7. National Renewable Energy Laboratory & EnergySage. (2026). Solar savings data. https://www.energysage.com/solar/much-solar-panels-save/
8. U.S. Environmental Protection Agency. (2025). ENERGY STAR: Seal and insulate. https://www.energystar.gov/saveathome/seal_insulate/why-seal-and-insulate
9. Bipartisan Policy Center. (2024). IRA consumer survey. https://bipartisanpolicy.org/a...
10. Pearl Certification. (2025, November). Pearl SCORE methodology white paper. https://www.pearlscore.com
11. Houzz. (2025). 2025 U.S. Houzz renovation trends study. https://st.hzcdn.com/static/ec...
12. Bureau of Labor Statistics. (2024). American time use survey. https://www.bls.gov/tus/
13. ENERGY STAR & Green Builder Media. (2025). Smart home energy management savings data. https://www.greenbuildermedia.com/blog/the-promise-of-smart-home-energy-management
