Homeowners are scaling back on discretionary spending rather than stepping away from their properties, according to Angi’s latest State of Home Spending Pulse. The report, released at the midpoint of 2026, finds that rising costs are prompting homeowners to rethink project priorities while essential repairs and preventative maintenance take precedence. Despite the financial pressure, confidence in future home investment remains surprisingly strong.
As material and labor costs continue to climb, many homeowners are postponing discretionary plans and leaning toward upkeep. This shift mirrors broader market trends where fewer people are taking on projects, yet those who remain active are spending more per project. The findings indicate that while the volume of work might be shifting, the long-term commitment to the property has not wavered.
Rising costs are reshaping project plans significantly. Data shows that 92% of homeowners who recently hired a professional completed their project at or above budget, with 43% exceeding their original estimates. Among those who went over budget, slightly more than one-third spent at least 30% more than originally planned. This financial pressure is influencing which projects move forward, as 59% of homeowners said cheaper materials would make them more likely to act, and 54% cited lower inflation as a motivating factor.
Essential work is taking priority over renovations. Statistics show that 58% of recent pro-hirers completed a repair within the past month, and 63% completed maintenance work. Additionally, 23% of homeowners who delayed a project noted that an unplanned or emergency need had jumped the queue. This focus on necessity over novelty suggests that while discretionary spending is slowing, the physical condition of the home remains a top concern.
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Homeowners are still planning for the future, with 66% indicating they plan to make a major home investment within the next five years. This figure represents the highest level recorded in Angi’s State of Home Spending research to date. More than 1 in 4 homeowners are already accelerating projects to get ahead of future price increases, and 56% plan to begin or continue a home project within the next three months.
It is difficult to ignore how the economic environment has shifted the timing of these decisions. In past cycles, when interest rates rose, homeowners often paused all spending, waiting for conditions to stabilize before touching a renovation. The current data suggests a different behavior where the urgency to secure value before costs climb overrides the hesitation caused by inflation. The home is viewed not just as a place to live, but as a financial asset that requires active management to preserve its worth.
Confidence is evident in the market despite current challenges. The desire to maintain a property’s value remains a driving force for many. Industry experts note that the shift toward essential repairs does not signal a lack of interest in the housing sector. Instead, it reflects a strategic adjustment to economic realities.
