Though homeownership remains a goal for many Americans, high prices and mortgage rates are making it harder to move. According to a recent survey conducted by This Old House, 91% of homeowners don’t plan to sell in 2025, with many choosing to stay put because buying a new home is too expensive. Home prices are continuing to rise, reaching a median of $435,000 in October 2024 while mortgage rates stay high, thus housing affordability could become even harder to achieve.
According to This Old House, To better understand homeowners’ plans and the economic factors at play, the research team at This Old House surveyed 2,000 homeowners about their renovation and selling plans for 2025. This report looks at how inflation, high home prices, and mortgage rates are affecting renovation plans and the housing market.
About 48% of homeowners plan to make renovations in 2025, with younger Americans much more likely than baby boomers to plan home improvements. Leading the pack are millennial homeowners (60%), followed by Gen Z (56%) and Gen X (50%). Baby boomers are less likely to have remodeling plans, with only 32% planning renovations.
When it comes to renovation goals, 50% of those remodeling in 2025 say they’re doing it to make their living space look better, while 49% are making repairs. Additionally, 41% plan to renovate to make their living space more comfortable, and another 41% plan to remodel to increase their home’s value.
