| Quick Answer More Americans renovating instead of moving is becoming the new norm in 2026 because moving has become extremely expensive and giving up a low mortgage rate locked in a few years ago simply costs too much. A 2026 Redfin survey found 43% of Americans renovated their home in the past year, and about two-thirds of them did it specifically to avoid moving. Rising home prices, high mortgage rates, and a desire to personalise their current space are the main drivers. |
Ask the owners of $10 million homes whether they would consider selling and relocating given the opportunity, and the answer is likely to be no, but that’s not because they prefer the status quo; it’s because to move right now would mean swapping a mortgage for something vastly more expensive, and that, for most Americans, is an unsustainable cost. And so instead of selling, millions of Americans are buying.
That shift in attitude – in fact, in calculus – is reflected in millions of dollars’ worth of renovations and home improvements happening across the United States, many of which are being undertaken by homeowners who would otherwise be unable to afford them.
The Big Reason: Nobody Wants to Give Up a Cheap Mortgage
Here’s the easiest way to understand the phenomenon: a substantial part of American homeowners now have mortgages with an interest rate significantly below current levels. For most of them (roughly 80 percent of all mortgage holders), it would be cheaper to stay where they are and renovate than to move and take a new loan at today’s rates.
So rather than sell their house, take a bigger mortgage (costing hundreds of dollars extra per month on the same square footage), and pay off all the expenses that come with a relocation, homeowners are choosing to stay put and renovate. And that, quite simply, is the cheapest option available.
Moving Has Become Really Expensive
It’s not just the mortgage rate. Moving costs more than it used to too, like estate agent fees, removals and more. Add that to a higher mortgage rate and suddenly staying and renovating is starting to sound like a sensible option!
A recent survey performed by Redfin actually shows that 43% of Americans have renovated in the last year, and another 33% have plans to renovate this year. Of those who renovated in the past year, 65% stated that they did so rather than move house. It rises to 71% of those who plan to renovate soon.
Why Are Americans Renovating Instead of Moving?
While the internal spending data of Bank of America tell a similar story for the second quarter of 2026, the information concerns household mobility. Basically, the number of families that change their address decreased throughout the observed period, which is true for all age groups and income categories. More specifically, millennials were those who moved the least, followed by those from Gen X and baby boomers. Only Generation Z showed a slight increase from the previous year, but it was not enough to say that there was a growing trend.
Notably, more homeowners now use home equity lines of credit (HELOC) to renovate rather than pay off a mortgage. Therefore, the trend implies that people take out loans against their home equity, which is different from buying a new house.
What Renovations Are Most Popular Right Now
Interestingly, the majority of homeowners do not renovate their homes completely. According to Redfin’s survey, the cost of remodeling home projects usually involves less than $20000. Therefore, people tend to choose specific repairs that would bring the most comfort and satisfaction without reconsidering the whole house. The most popular types of remodeling are repainting, bathroom upgrades, and kitchen renovations.
Moreover, there is a noticeable shift in the priorities of the remodeling decisions among the homeowners. They are increasingly choosing projects that would allow them to enjoy the house improvements rather than make the house more presentable for sale. In other words, remodeling is now often used for personal satisfaction rather than economic purposes.
Which States Are Renovating the Most
Geography plays a role too. A recent ranking of home renovation activity found that the states leaning hardest into renovating over moving are concentrated in the Northeast, with New York topping the list. Homeowners in these states are especially likely to be sitting on older, low mortgage rates, which makes the financial case for staying put even stronger there than elsewhere in the country.
Is Renovating Actually Cheaper Than Moving?
In many cases, Yes, if a family decides to renovate its existing house, at least in the short term. A medium-sized renovation, even one worth $15,000 to $20,000, is likely to cost far less than the additional interest they would pay on a new mortgage over several years, particularly when moving costs and estate agent fees are added in. It won’t be the right decision for every family, if they don’t need the house any more, but it can be a much more affordable option in the short term.
Key Takeaways
- 43% of Americans renovated their home in the past year, and 65% of them did it instead of moving
- About 80% of mortgaged homeowners have a rate below today’s market rate, making moving expensive
- Household mobility fell across nearly every age group through 2026
- Most renovations cost under $20,000 and focus on paint, bathrooms, and kitchens
- Northeastern states show the strongest renovate-instead-of-move trend
Frequently Asked Questions
Why are homeowners choosing to renovate instead of sell their homes?
Most homeowners are staying put because moving would mean giving up a low mortgage rate for a much higher one, on top of paying moving and selling costs.
How much do Americans typically spend on renovations?
Most recent renovation projects cost under $20,000, based on 2026 survey data, suggesting most homeowners are choosing targeted upgrades over full remodels.
What are the most common home renovation projects in 2026?
Fresh paint, bathroom upgrades, and kitchen renovations are the most popular projects among homeowners choosing to improve rather than move.
Are Americans moving less than they used to?
Yes. Data through 2026 shows household mobility has declined across nearly every age and income group, with the steepest drops among Millennials and lower-income households.
Is it cheaper to renovate a home than to move?
Often, yes. The combined cost of a higher mortgage rate, moving fees, and selling costs frequently outweighs the cost of a moderate renovation project.
