Renovation Market Outlook: Trends & Insights from Late 2025
As 2025 nears its end, the home renovation and remodeling market shows signs of steady growth, resilience, and strategic transformation. From rising demand for green building materials to optimistic forecasts for 2026–2027, here's what homeowners, investors, and platforms like GreatBower need to know about renovation trends.
1. Modest Growth Now, Bigger Boom Coming
The Harvard Joint Center for Housing Studies projects a 1.2% increase in total home renovation spending, bringing the 2025 market to $509 billion. Despite economic headwinds, the sector is gaining momentum due to stronger housing valuations and improved contractor availability.
2. Lowe’s CEO Predicts Rebound
At the 2025 Goldman Sachs Retailing Conference, Lowe’s CEO Marvin Ellison stated the home improvement sector is poised for a comeback—driven by either falling mortgage rates or homeowner “lock-in” behavior encouraging renovation instead of relocation. Lowe’s is investing in AI tools and contractor-first solutions to stay ahead. Source
3. Green Building Materials Gain Momentum
Sustainable construction materials are becoming central to remodeling decisions. Regulatory incentives and consumer demand are fueling rapid growth in energy-efficient windows, recycled materials, and net-zero technologies. Source
4. Rent Declines and Renovation Demand
Canada experienced its 11th straight month of residential rent decline in August 2025 (down 2.3% YoY). As rent cools, homeowners may redirect capital toward retrofits, upgrades, and energy improvements—especially where resale isn’t viable. Source
5. Materials Still a Pressure Point
New tariffs on copper and lumber, along with lingering inflation, continue to impact renovation project budgets. While the overall market outlook is improving, material cost volatility remains a key challenge heading into 2026. Source
6. Canada’s Market Stabilizes
The Canadian renovation market shows signs of stabilizing post-pandemic. While no explosive growth is expected, homeowners continue to prioritize adaptation, energy retrofits, and modernization. Source
What This Means for Stakeholders
| Stakeholder | Implication |
|---|---|
| Homeowners | Good time for essential renovations and energy upgrades. |
| Service Providers | Plan for 2026 growth—optimize visibility, pricing, and partnerships now. |
| Crowdfunding Platforms | Highlight green features, affordability, and staged renovations to appeal to backers. |
| Retailers | Push green products and contractor loyalty tools to gain market share. |
Forecast: 2025–2027
- Late 2025: Stabilization, cautious optimism.
- 2026–2027: Projected mini-boom as rates fall and pent-up demand is released.
- Top Material Focus: Sustainable/green materials with regulatory support.
Conclusion
The end of 2025 marks a pivotal period in home renovation. While growth remains modest for now, platforms like GreatBower should position themselves for the next wave by prioritizing sustainability, affordability, and community-driven design. The coming years may offer some of the most promising opportunities the renovation market has seen in over a decade.