U.S. Homeowners Are Remodeling Instead of Relocating

Key Terms

cash-out refinance financial

A cash-out refinance is when a homeowner replaces their existing mortgage with a larger loan and receives the difference in cash, using the home’s equity as collateral. Investors care because increased cash-out refinancing raises household debt and can boost consumer spending in the short term while also changing the risk profile of mortgage-backed assets and bank loan portfolios—think of it like trading in a car for a bigger loan and pocketing the extra cash, which can amplify both growth and risk.

About two-thirds of homeowners who recently made renovations chose to upgrade their home instead of moving to a new place, per a recent Redfin survey

SEATTLE--(BUSINESS WIRE)-- More than two in five (43%) Americans renovated their home in the last year, and another 33% plan to renovate in the next year, according to a recent survey commissioned by Redfin, the real estate brokerage powered by Rocket.

For many, renovating is a deliberate alternative to seeking out a different home. Roughly two-thirds (65%) of homeowners who are recent renovators chose to upgrade their current home instead of moving. For homeowners who are planning to renovate in the next year, 71% say they’re remodeling instead of buying a new place.

This report is based on a Redfin-commissioned survey fielded by Ipsos in November 2025, fielded to 4,000 U.S. residents.

Homeowners are staying put because it is expensive to move. With high mortgage rates and home prices, moving isn’t an affordable option for many Americans—especially when about 80% of homeowners with a mortgage have an interest rate below current levels, according to a recent Redfin analysis. Other recent Redfin research shows that while housing inventory is increasing slightly on a year-over-year basis, there’s still a shortage of desirable, move-in ready homes for sale—especially those that are spacious enough for a family.

Gen Zers and millennial homeowners are more likely than their older counterparts to remodel instead of move, with 77% of each generation saying they made improvements rather than moving in the last year. Those with kids living at home are also more likely than others to choose renovations.

“Many Americans are choosing to stay put and make the home they already have work for them,” said Chen Zhao, Redfin’s head of economics research. “That could mean improving outdated spaces, adding space for a growing family or reconfiguring the existing space so it works for everyone. Younger homeowners are especially likely to renovate instead of jumping to a different house; they’re earlier in their homeownership journey and more willing to invest in improvements to build equity. Those with kids living at home are often motivated to plant deeper roots where they are so they can stay in the same school district and community.”

Most Homeowners Who Opt to Renovate Spend Under $20K on Upgrades

A lot of renovators are opting for meaningful improvements without busting their budget on a complete remodel.

Roughly a quarter (23%) of people who renovated their home in the last year spent between $10,000 and $20,000 on improvements; the next-most common price tags were $1,000 to $5,000 (21% of recent renovators) and $5,000 to $10,000 (20%). A sizable share (16%) spent between $20,000 and $50,000 on renovations.

Fresh Paint, Bathrooms and Kitchens Are Most Popular Improvements

Painting is the most popular upgrade; nearly half (47%) of recent renovators gave their home a fresh coat. Next are bathroom (43%) and kitchen (40%) improvements. Exterior maintenance and landscaping are also popular, with 35% of renovators opting for those upgrades.

Climate resiliency is important to some homeowners, too: About one in seven (15%) added features to make their homes more resilient to natural disasters such as flooding, wind, fire and/or heat.

One way to fund renovations is with a cash-out refinance, which allows homeowners to use the equity they’ve built up in their house to pay for upgrades. Rocket Mortgage offers cash-out refinances, in which homeowners take out a bigger loan in exchange for putting cash in their pocket.

Home improvements not only provide homeowners with the space and features they need to make their house comfortable, but they can be worthwhile in the long run. “If you can afford it, investing time and money into making your house look and feel better can help when it comes time to sell,” said Jo Chavez, a Redfin Premier agent in Kansas City, MO. “Updated homes tend to sell faster than fixer-uppers, and for more money.”

To view the full report, including charts and a full survey methodology, please visit:
https://www.redfin.com/news/survey-homeowners-remodel-not-renovate

About Redfin

Redfin is a technology-driven real estate company with the country's most-visited real estate brokerage website. As part of Rocket Companies (NYSE: RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin’s clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent.

You can find more information about Redfin and get the latest housing market data and research at https://www.redfin.com/news. For more information about Rocket Companies, visit https://www.rocketcompanies.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260417938810/en/

Contact Redfin Journalist Services:
Kenneth Applewhaite
press@redfin.com

Source: Redfin