What’s on the cards for the renovation industry as 2026 unfolds? Business is about to pick up in a serious way. The housing market spent 2025 in a holding pattern that frustrated everyone involved.
According to J.P. Morgan, growth barely registered at 3%, leaving transactions at historically low levels. Buyers stayed cautious, and sellers stayed put in homes they wanted to refresh but couldn’t afford to leave.
Now the freeze is breaking. The National Association of Realtors forecasts a potential double-digit increase in home sales for 2026. This uptick in the market, driven by job growth and supply shortages, opens up fresh opportunities for contractors.
Homeowners who delayed renovations are suddenly ready to commit. They’ve likely spent months refining their wish lists and comparing contractor reviews online. The projects they’re planning reflect some clear preferences you’ll want to know about.
Let’s break down the trends that will define your project calendar this year.
Durability Over Design
As renovation costs rise due to contractors adjusting prices to keep up with tariffs, homeowners will increasingly prioritize durability over aesthetics in 2026.
With expenses on the rise, many are looking for long-term investments that will stand the test of time and reduce future costs. For instance, fiberglass pool installers may see increased demand, even among luxury homes, as homeowners seek pools that are not only stylish but also durable.
Fiberglass pools require far less maintenance than traditional concrete or vinyl options because of their rugged construction. This results in lower upkeep costs, notes Stefano’s Landscaping.
Expect similar requests across other projects, too. Clients may gravitate toward metal roofing that lasts fifty years instead of asphalt shingles needing replacement every fifteen years.
Engineered hardwood floors could win out over softer woods that dent and scratch easily. Quartz countertops might become the default over marble, which stains and etches. When renovation budgets are stretched, people want materials that won’t need replacing anytime soon.
Smart Meets Sustainable
2026 will likely see a rising demand for homes that blend cutting-edge technology with sustainability. As more homeowners seek eco-friendly options, there’s a clear shift toward smarter, greener renovations.
This demand is fueled by growing awareness of environmental impact and a desire to lower utility costs. PwC found that buyers are willing to pay nearly 10% more for products made or sourced sustainably, even with inflation still affecting household budgets.
This trend is spilling over into home improvement as well, where energy-efficient appliances, smart home systems, and sustainable building materials are increasingly in demand. Contractors who can offer both high-tech solutions and eco-conscious options will be in a prime position to capture this growing market.
In the years ahead, the focus will not only be on making homes smarter but also on making them more sustainable. The goal would be to create spaces that are both efficient and environmentally responsible.
Multipurpose Spaces Are Here to Stay
The need for multipurpose spaces in homes will continue to rise, as more homeowners look to maximize their living areas. With remote work, hybrid learning, and at-home fitness becoming the norm, there’s a growing desire for spaces that can adapt to different needs throughout the day.
Home offices, home gyms, and flexible entertainment areas are now essential components of modern living. Renovation experts who can design versatile rooms that easily transition between uses will be highly sought after.
The challenge is making these rooms feel intentional rather than thrown together. Nobody wants a treadmill shoved next to a desk with some resistance bands hanging off a doorknob. People may ask for solutions that let each function have its moment without interfering with the others.
That could mean installing pocket doors so a workspace can be closed off during meetings. Or adding a Murphy bed that disappears completely when it’s not needed. In short, versatility will be a key factor in renovation decisions for 2026.
Energy Efficiency at the Core of Every Decision
Homeowners in 2026 will probably scrutinize every watt like never before. Forbes reports that electricity costs are expected to climb significantly due to federal mandates taking effect.
Expect clients to prioritize upgrades that slash their monthly bills in any way possible. They’ll likely ask about triple-pane windows before discussing paint colors. Insulation quality may become a bigger selling point than crown molding.
LED lighting systems, high-efficiency HVAC units, and Energy Star-rated appliances won’t be nice-to-haves anymore. They’ll be essential. Some homeowners might even request whole-home energy audits before deciding which projects to tackle first. The math is straightforward for them.
Spending more up front on efficiency improvements means paying less every single month for years to come. Therefore, aim to frame your renovation proposals around long-term cost reduction, and you’ll likely see more enthusiastic responses.
Where This Leaves You
Nobody can predict everything that will happen this year, but the patterns are already emerging. Homeowners want homes that cost less to run, last longer, and work harder for their families.
The good news is that you already know how to deliver on those things. It’s just a matter of adjusting your pitch and your inventory to match where client priorities are heading. Stay curious about what people are browsing online to stay ahead of the curve.