DENVER — Rising costs and economic uncertainty are reshaping the way Americans approach homeownership, according to Angi’s 2024 State of Home Spending Report.

While total home project spending declined by 12% in 2024, a significant 93% of homeowners are planning projects in 2025, highlighting their commitment to maintaining and improving their properties.

The report reveals a growing trend of “renovate over relocate,” with 67% of homeowners opting to update their current homes rather than moving. High interest rates and limited housing inventory continue to make relocating a less attractive option, pushing homeowners to focus on creating functional and personalized spaces.

“Homeowners are clearly committed to their homes,” said Angie Hicks, co-founder of Angi. “Even as economic pressures and challenges to getting projects done mount, the desire to create functional, personalized and well-maintained spaces is stronger than ever. The optimism for 2025 reflects the enduring value of homeownership as both a financial and emotional investment.”

Homeownership hurdles

Despite this determination, homeowners faced significant challenges in 2024:

• Skilled labor shortages: Over half (54%) struggled to find qualified professionals, leading to delays, higher costs, and limited availability.
• Unexpected expenses: More than 50% encountered surprise costs during projects, driven by rising material and labor prices.
• Affordability concerns: Stress levels are increasing, with 61% of homeowners worried about covering maintenance or repairs in 2025. Younger homeowners are particularly impacted, with 63% actively budgeting for future expenses.

Spending trends: A shift to essentials

Overall, homeowners spent an average of $12,050 on home projects in 2024, down from $13,667 in 2023. Spending focused on essential upkeep and lifestyle-driven upgrades, as discretionary improvements slowed.

• Home improvements: This category remained the largest, averaging $9,322, slightly down from $9,542 in 2023.
• Maintenance: Spending fell to $1,750 (from $2,458 in 2023), indicating a focus on routine care.
• Emergency repairs: A drop to $978 (from $1,667 in 2023) suggests proactive maintenance helped avoid costly fixes.

Generational differences also emerged. Baby Boomers led spending in 2024, averaging $14,140, while Millennials focused on maintenance, spending $2,316, $1,000 more than any other generation. High-income households earning more than $150,000 saw the largest spending increase, averaging $21,958, up from $20,649 in 2023.

Looking ahead: Sustainability and innovation

Homeowners are increasingly prioritizing sustainability and multigenerational living in their plans for 2025. One in four now lives in a multigenerational household, driving demand for larger renovations and accessible designs. Key trends for the coming year include:

• Sustainability upgrades: Outdoor spaces, solar panels and energy-efficient improvements are top priorities.
• Future-focused budgeting: Younger homeowners are leading the way, with 63% actively saving for upcoming projects.
• Long-term investments: Projects such as kitchen remodels (31%) and bathroom upgrades (28%) rank high for those planning large-scale renovations.

While 2024 was marked by economic challenges and tighter budgets, Angi’s report demonstrates that homeowners remain committed to their homes, making measured investments that balance practicality, sustainability, and evolving household needs. As homeowners plan for 2025, their focus appears to be on essential projects, sustainability, and long-term value, according to the report.

Founded in 1995, Angi connects homeowners with skilled professionals and has supported over 150 million home projects nationwide.

See also:

• Survey: 8 in 10 companies expect price hikes, layoffs in wake of Trump’s tariffs
• Life stages, economics determine home renovation spending

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