• 42% of homeowners say the economy has affected their renovation plans, yet most continue moving forward with their projects
• More than 1 in 5 report a multigenerational living arrangement, and 17% are interested in or actively considering building an ADU
• Nearly a quarter of renovators use AI tools during renovation planning, up from 9% last year; 84% of AI users say it influenced at least one decision

NEW YORK, April 7, 2026 /PRNewswire/ — Block Renovation, the most trusted place to plan and hire for major renovations and new construction, today released its How America Renovates 2026 report, offering a comprehensive look at how US homeowners are navigating major renovation decisions. The findings suggest that even as homeowners face ongoing economic pressures, they continue to prioritize home updates, with functionality as the underlying goal. Renovation is increasingly being shaped by changing household structures, growing interest in flexible living space, and the emergence of AI as a practical planning tool.

Economic Pressure Is Real, But Homeowners Continue to Renovate

Amid inflation and interest-rate pressure, homeowners are still finding ways to move renovation projects forward. Forty-two percent of respondents say the economy has influenced their plans, but when costs rise, most continue on with their remodels rather than stalling or stepping away. Thirty-eight percent say that they would stay the course or absorb additional costs, compared to 9% who would reduce the project scope or 8% who would pause. With seven in ten projects funded through personal savings, homeowners are approaching renovations with discipline and determination to keep their projects on track and costs in line.

Function and Flexibility Rule as Multigenerational Living Expands

However, the reasons for renovating continue to evolve. Most homeowners (68%) are renovating to make their spaces more functional, not more marketable for resale. This reality is tied closely to changing household dynamics. Multigenerational living is no longer a niche scenario, with more than one in five survey respondents reporting two or more generations of adults living in their home.

The research also points to steady interest in accessory dwelling units (ADUs) as homeowners look for more adaptable ways to use their properties. Seventeen percent of respondents say they are interested in or actively considering building an ADU, with 39% of those suggesting that they would use the space for family care, such as housing relatives and caregivers. These trends point to a growing emphasis on retrofitting homes to suit changing long-term needs.

AI Adoption Continues to Rise in Renovation Planning

AI is becoming a meaningful part of renovation planning. Nearly one in four homeowners report using AI tools during renovation planning, up from just 9 percent the year prior. Adoption is especially high among Millennials, 42% of whom are using AI tools. Eighty-four percent of AI users say the tools influenced at least one renovation decision, with design and layout planning and cost estimation among the most common uses.

Trust Overtakes Cost as the Top Barrier

Meanwhile, finding a trustworthy contractor has become the defining challenge for homeowners. Thirty percent of survey respondents identify this as a barrier, surpassing the high costs of renovation (cited by 24 percent). At the same time, one in five homeowners report that simply not having a clear sense of what their renovation will cost adds another layer of hesitation early in the process.

“For homeowners today, renovating is about adapting the home to real life,” said Julie Kheyfets, CEO of Block Renovation. “Our research reveals that Americans are renovating to create more flexible, functional living arrangements, and they are increasingly turning to AI to manage the process. Agentic platforms like Block provide clarity, automate admin work, and ultimately empower homeowners to create spaces they love.”

How America Renovates is an annual report conducted by Block Renovation to better understand the financial, emotional, and logistical experiences of US homeowners who have completed a major renovation or are planning one within the next 12 months. The 2026 report is based on an independent online survey conducted between February 19 and March 4, 2026, among 1,059 qualified US homeowners.

To access the full report, visit: https://www.blockrenovation.com/guides/how-america-renovates-in-2026

ABOUT BLOCK RENOVATION:

Block Renovation is the most trusted place to plan and hire for major renovations and new construction in the US. Utilizing proprietary data and AI technology, Block provides personalized, end-to-end renovation and construction support, allowing customers to plan their project, connect with tailored contractor matches from Block’s vetted network, receive in-depth and easy-to-compare proposals, and hire confidently with project protections. Trusted from coast to coast, Block has successfully supported hundreds of millions in renovation and new construction projects. Learn more at: https://www.blockrenovation.com/.

View original content to download multimedia:https://www.prnewswire.com/news-releases/block-renovations-how-america-renovates-2026-report-finds-functionality-multigenerational-living-and-ai-are-shaping-renovations-today-302735081.html

SOURCE Block Renovation