Remodeling Costs 2026: Kitchen and Bath Prices, Slower Growth and What It Means

Remodeling costs 2026 tell two stories at once. Individual projects keep getting more expensive. Meanwhile, overall remodeling growth is slowing, and homeowners are planning smaller budgets. That combination squeezes remodelers from both sides. This post covers what the 2026 data says about costs, how homeowners are paying, and what remodelers should do about it. For our program overview, see our remodeling financing page.

Remodeling costs 2026: what homeowners are spending

The 2026 Houzz & Home Study tracked what homeowners spent on 2025 projects:

Project	Median spend (2025)	Change from 2024
Kitchen	$24,000	Up from $22,000
Primary bathroom	$15,000	Up from $13,000
Guest bathroom	$7,000	Up from $6,000
Living room	$5,000	Up from $4,000

At the high end, the 90th percentile reached $150,000 for large kitchen remodels and $93,000 for small ones. Large primary bathrooms reached $75,000.

$24,000

median homeowner spend on a kitchen remodel in 2025, up from $22,000

2026 Houzz & Home Study

Industry data points the same way. Window & Door's June 2026 survey cited an average remodeling project of $31,000, compared with $22,000 in 2019.

Growth is slowing

Harvard's Joint Center for Housing Studies tracks remodeling with its Leading Indicator of Remodeling Activity. The May 2026 LIRA release put spending at about $521 billion in early 2026. It projects annual growth falling from 1.8% in the second quarter of 2026 to 0.5% by early 2027.

The researchers point to flat remodeling permits and flat retail spending on building products. Their view is that without a sustained rebound in housing construction, remodeling is likely to stay in a low-growth range.

Homeowners are planning smaller budgets

The Houzz study, reported by Woodworking Network, found 54% of homeowners renovated in 2025, at a median spend of $20,000. For 2026, 50% planned renovations, down from 52%. Their intended median spend dropped to $15,000.

That gap matters. Costs are rising, and homeowners are planning to spend less. Something has to give: scope, timing or how they pay.

How homeowners pay

The same study found:

• 84% used savings.
• 34% used credit cards, up 5 percentage points from the prior year.
• 37% exceeded their budget, while 35% stayed on target.
• 91% hired professionals for at least part of the work.

34%

of renovating homeowners used credit cards, up 5 points year over year

Houzz via Woodworking Network, April 2026

Savings are stretched. The Federal Reserve's 2025 SHED report found only 63% of adults could cover a $400 surprise with cash. Credit is selective too. The New York Fed's Credit Access Survey put the rejection rate for credit applicants at 16.1% in June 2026.

What it means for remodelers

Scope is under pressure. Homeowners planning smaller budgets will try to cut. The island, the tile upgrade and the second bathroom are first to go.

Decisions will stretch out. In a slow market, "let's wait" is easy to say. Every stalled proposal is a project that may not come back.

Payment method is part of the sale. With a third of renovators already using cards, homeowners are looking for ways to spread cost. A structured monthly option is a clearer alternative.

How to respond

1. Update pricing so proposals reflect real 2026 costs. Do not quote last year's numbers.
2. Show three tiers with a total and a monthly option on each.
3. Offer phases. Kitchen now, bath later. Cabinets now, backsplash next spring.
4. Start the application during the proposal meeting, before the homeowner goes home to cut scope. Apply together or by QR code, and put a web link in every proposal for anyone who needs time.
5. Match programs to projects. Short 0% promos for smaller baths, and extended terms for large kitchens. See 0% financing for a kitchen remodel.
6. Track close rate and average project size monthly, financed versus cash.

Where the pressure lands by project type

Kitchens. The biggest dollar decisions and the most room to cut. Expect homeowners to question islands, appliance packages and countertop upgrades first. Tiered proposals with monthly options protect the scope you designed.

Primary bathrooms. A $15,000 median makes the primary bath a mid-size decision. Many homeowners can finance it on a short promo or a standard installment plan, and it phases well with a guest bath later.

Guest baths and smaller rooms. These are the projects homeowners postpone first when budgets tighten. A low monthly option can keep them on the calendar.

Additions and whole-home remodels. These carry the longest timelines and the biggest balances. Funding timing and approval validity matter as much as the monthly number.

Budgets run over, so plan for it

The Houzz data shows 37% of renovators exceeded their budget. Build contingency into proposals and explain it plainly. When a change order comes, show its effect on the total and on the monthly option. A homeowner who sees the monthly effect of a change is far less likely to panic than one who only sees a larger total.

A word on regional differences

National medians hide big regional swings. Labor, permits and material delivery costs vary widely between metros. Use national data to frame the conversation, and your own job costs to set prices. When homeowners bring in national averages they read online, explain what drives local prices and show how a monthly option fits their budget.

Lead times and approvals

Rising costs often arrive with longer lead times on cabinets, windows and specialty materials. Longer timelines stretch the gap between approval and start. Ask your financing provider how long approvals stay valid, and track expirations next to your project calendar. An approval that lapses during a cabinet delay forces an awkward reapplication at exactly the wrong moment.

Protect margin without discounting

In a soft market, the temptation is to discount to win work. Discounts cut margin on every project. A clear monthly option often achieves the same goal, a project that fits the homeowner's budget, without touching your price. Build the cost of financing into pricing once, and let the monthly number do the work a discount would have done.

What to tell homeowners

Homeowners have seen headlines about rising prices. Give them context without pressure:

"Remodeling costs have gone up over the last few years. Here's the full investment for each option, and here's what it looks like monthly. If you'd rather start smaller, here's a phase one."

That keeps the conversation honest and moves it toward a decision. It also gives the homeowner three clear paths, so "let's wait" is no longer the only easy answer.

The bottom line

Remodeling in 2026 is a market of rising project costs, slower growth and cautious homeowners. The remodelers who do best will close more of the proposals they already write and protect scope with clear monthly options. For how to build financing into every proposal, read how to offer financing for remodeling. For the full program view, see remodeling financing for contractors.