A major consequence of skyrocketing home prices is that many Americans are choosing to renovate the homes they already have rather than try to find a new one in an unpredictable market. In fact, nearly two-thirds of homeowners would rather renovate their home than move to a new one, according to a new study from Clever Offers.
But many homeowners discover that renovating can be nearly as stressful as moving and unexpectedly expensive. With inflation continuing to push prices higher, some homeowners are finding they can’t afford renovations or even routine maintenance.
Home Renovations Are Costlier Than Expected
Nearly all homeowners have performed a home renovation in the past five years, but 70% said they went over budget. Of those who went over budget, about a quarter went over budget by at least $5,000.
Still, nearly half of homeowners say they expect to spend more on renovations in 2026 than they did in 2025. With costs rising, it’s important to invest in home improvements that will add the most value to your home.
Chris Colgan, a Virginia-based real estate agent, says updating the bathroom is by far the renovation that adds the most value to a home. He also said converting carpeted floors to hardwood is also a great renovation for increasing a home’s value.
Lydia Rowe, an Ohio-based agent, said homeowners should aim for a clean vibe.
“I’d say the renovations that tend to add the most value are the ones that make a home feel clean, functional, and well-maintained — not necessarily high-end,” she said. “Updating flooring, consistent finishes on trim, and even making sure the lightbulbs are all the same color, these all add up to a home that feels move-in ready and will almost always outperform expensive, over-customized renovations.”
Renovating On a Budget
Even as costs rise, renovation budgets are shrinking. 50% of homeowners said they need necessary renovations right now that they can’t afford, and 30% have gone into debt to finance a renovation project.
For homeowners on a budget, Colgan said it’s very easy to refresh a home without spending a lot of money.
“I would do a basic paint touchup,” Colgan said. “You can go to Sherwin-Williams, and they match the exact color on your wall. Change out those old light fixtures with new ones, which can easily be bought from Lowe’s or Home Depot. Landscape the front of the home and paint the exterior door.”
Deferring Maintenance Can Be Costly
Cash-strapped homeowners are delaying home renovations, with 47% reporting that they put off renovations specifically because of financial constraints. More troubling, though, is that 65% of homeowners have delayed routine maintenance in the past five years. Thirty-eight percent of homeowners who skipped maintenance said they did so because they couldn’t afford it.
Skipping maintenance can save money in the short-term, but it can be disastrous over a longer span of time. Twenty-nine percent of homeowners said they’ve had to perform a preventable repair because of delayed maintenance, with 44% of those homeowners saying that the repair cost them more than $5,000.
“If buyers can see issues like chipped paint around the windows or obvious water intrusion under a sink, they often assume that there may be many hidden issues as well,” Rowe said. “Buyers are often shocked at the inspection report if there’s a long list of items that haven’t been taken care of or maintained. Sometimes buyers will walk away. Almost always, they will ask for repairs to be made or for a price reduction. That’s the last thing a homeowner wants after they’ve accepted an offer.”
For sellers who can’t or won’t perform needed repairs before a sale, their only option may be to sell to a company that pays cash for homes, which generally pays below-market prices.
Many Try to Do It Themselves
Over two-thirds of homeowners have completed DIY renovation in the past five years, and nearly all said they’d attempt one under the right circumstances.
The main reason homeowners would DIY a renovation is to save money. About 66% of respondents cited this reason in 2026 — a significant increase from the 52% who said the same in 2024.
DIY renovations come with real risks, however. A quarter of homeowners have damaged their home attempting a DIY project, and experienced agents have seen many botched DIY projects lead to trouble, sometimes years after the work was completed.
“I saw someone finish a basement on their own, and the buyer asked the county if it was permitted,” Colgan said. “They said no. The county made the owner strip all the drywall and add fire safety paint to the wood. It was crazy. Always make sure you go through the county and get a permit.”
DIY fixes can save money, but Rowe has seen many shoddy DIY repairs backfire, especially when they involve complex home systems.
“I’ve seen DIY plumbing solutions cause leaks, clogs, or drainage issues that weren’t obvious at first but became major concerns later,” she said. “DIY can absolutely save money, but homeowners need to know when a project moves beyond their ability, and it’s time to hire a professional. I always recommend having a local expert walk through before you do the work to give advice on what is worth it and what is likely to give good ROI.”