Block Renovation Releases 2025 Report "How America Renovates": Stretching Budgets, Staying Put, & Turning to AI

• Over 85% of homeowners experienced stress during their renovations, and 39% of Millennials reported that renovating strained their relationships.
• 73% of homeowners tapped into personal savings to fund renovations, with most budgeting between $10,000–$25,000 and one third reporting going over budget.
• 45% of Millennials are using online platforms to find contractors, and 16% are using AI during the renovation process, far outpacing older generations on technology adoption.

NEW YORK, May 7, 2025 /PRNewswire/ -- Block Renovation, the AI renovation platform empowering homeowners and contractors to build better together, today released its How America Renovates: What U.S. Homeowners Are Budgeting, Planning, & Remodeling in 2025 report. The report offers a candid snapshot of how Americans are managing the financial pressures, emotional stress, and logistical hurdles of home renovation, drawing insights from a nationwide survey of more than 1,000 homeowners.

The report finds that 73% of U.S. homeowners are using personal savings to fund renovations—far more than credit cards (17%) or home equity loans (15%). Gen X and Boomers are most likely to self-fund, while Millennials often turn to credit. Still, only 54% of renovators rely solely on savings, revealing that many homeowners are combining funding sources.

Despite efforts to budget carefully, 37% of homeowners still exceeded their renovation budgets, with many facing unexpectedly high costs for materials (58%) and labor (40%). However, affordability isn't just impacting how people renovate—it's driving why. With interest rates and housing prices at historic highs, 64% of respondents chose to renovate because they love their current home, while 12% cited being priced out of buying a new one—a figure that jumps to 17% among Millennials. In the West, where housing markets are especially competitive, 16% of homeowners cited cost as the primary reason they renovated rather than relocated.

"Homeowners invest deeply in their renovations – not just financially but also emotionally," said Julie Kheyfets, CEO of Block Renovation. "People are making deeply personal decisions to adapt their homes to their evolving needs, and renovating is one of the most expensive and stressful journeys someone might undertake. Block exists to help homeowners navigate that journey confidently – with personalized planning tools, transparent data, and vetted contractors, we help each homeowner create a home that's truly theirs, without the burnout."

Even financially motivated renovations take a toll. Over 85% of homeowners reported stress during the process, and 57% experienced "renovation fatigue"—emotional burnout caused by delays, disruptions, and decision fatigue. Millennials again felt the strain most acutely: 67% reported moderate to high stress, and 40% said their renovations strained personal relationships, compared to just 15% of Boomers. Top stressors included living through construction (55%), delays (35%), and making design decisions (29%).

Securing a reliable contractor remains a key hurdle. While more than half of homeowners (52%) rely on referrals, especially Boomers (70%) and Gen X (68%), Millennials are taking a different route: 45% turn to Google or digital platforms to find their contractor.

As a result, technology adoption in renovation remains a largely untapped opportunity: only 9% of homeowners used AI tools during their renovation, though adoption is growing among younger generations—16% of Millennials reported using AI. The most common applications were design and layout planning (73%), cost estimation (52%), and virtual mockups or consultations (43%)—pointing to a clear demand for tools that simplify complex decisions. As more homeowners seek smarter, more streamlined ways to plan and build, Block's AI renovation platform bridges the gap, offering personalized planning, trusted contractor matching, and real-time transparency for a personalized renovation experience.

To access the full report, visit https://www.blockrenovation.com/guides/how-america-renovates-in-2025.

About Block Renovation

Block Renovation is the only AI renovation platform for personalized home renovations. Homeowners can plan their project in minutes, get accurate cost estimates, and receive competitive quotes from vetted contractors, matched to their style, scope, and budget. With expert guidance, transparent pricing, and payment protection, Block gives homeowners the clarity and confidence to renovate on their terms. Trusted from coast to coast, Block has successfully supported thousands of renovation projects and transforms your vision into a home that feels truly yours.

SOURCE Block Renovation