2026 Home & Small‑Business Renovation Trends

Introduction

The renovation market is entering 2026 with stronger demand than most observers expected. Americans spent about $603 billion on home improvements in 2024 and spending is still growing; the Joint Center for Housing Studies projects a modest 1.2 % year‑over‑year increase by mid‑2026. Thanks to elevated mortgage rates, many homeowners are staying put rather than buying new homes, creating a “stay‑in‑place” economy where they reinvest in existing properties. Nearly 90 % of renovating homeowners hired professionals for major projects, and 62 % expect to remain in their homes for 11 years or more. Small‑business owners face similar pressures: high interest rates, sustainability mandates and hybrid‑work models are making renovations more attractive than new construction. This blog explores the latest residential and commercial renovation trends, with statistics, expert opinions, case studies and emerging tools to help you plan projects in 2026.

Residential Renovation Trends

Practical upgrades dominate

Homeowners aren’t just chasing aesthetics; they want practical improvements. A 2025 National Association of Realtors (NAR) survey found that the leading reasons to remodel were upgrading worn‑out surfaces and systems (27 %), improving energy efficiency (19 %) and preparing a home for resale (**18 %). With affordability constraints limiting moves, more households will renovate rather than relocate. Expect continued demand for energy‑efficient windows, insulation, solar‑ready roofs and smart thermostats.

Wellness, resilience and multigenerational living

Home design trends highlight wellness and longevity. Forbes reports that whole‑house battery systems, sealed building envelopes, leak‑detection sensors and programmable showers are becoming mainstream, helping prevent mold and extend a home’s life. Many homeowners want quiet rooms, indoor–outdoor living and spaces that support mental health. Multi‑generational living is also rising; walk‑in showers, elevators and accessible kitchens ensure homes adapt to aging parents or adult children. These trends align with a broader push toward aging‑in‑place features such as wider doorways and barrier‑free bathrooms.

Bundled, high‑ROI projects

The pandemic fueled superficial updates, but 2025–2026 brings bundled projects that combine kitchen, bathroom and interior reconfiguration into one coordinated remodel. Harvard’s Joint Center for Housing Studies forecasts renovation spending reaching $524 billion by early 2026. Homeowners are treating renovations as long‑term investments rather than quick flips. Financing also matters: roughly 54 % of 2025 remodelers used a home‑equity loan or HELOC, while 29 % relied on savings. Marketing messages should highlight affordability, such as monthly payment examples, to lower barriers.

Smart homes and sustainable tech

Smart technology is no longer a luxury: integrated security systems, automated lighting and app‑controlled appliances are baseline expectations. Energy‑efficient upgrades remain popular due to rising utility costs and expanded incentives. Programs like Canada’s Greener Homes Grant and the U.S. Inflation Reduction Act offer rebates for heat pumps, induction cooktops and insulation—opportunities marketers should tie into promotions. At the high end, digital twins and virtual reality (VR) allow homeowners to visualize renovations before construction: Spaciable notes that digital twins provide real‑time virtual models of homes, combining architectural plans with sensor data to optimize design and maintenance.

Commercial & Small‑Business Renovation Trends

Sustainability and climate resilience

For retail, restaurant and office renovations, sustainability is now the baseline. RPC General Contractors notes that major brands are adopting net‑zero goals, pushing green roofs, recycled materials, solar integration and high‑efficiency HVAC systems. Climate resilience is also critical, especially in coastal markets: resilient materials like permeable concrete, ductile steel and raised foundations help mitigate flooding and hurricanes. Storm‑resistant façades with impact‑resistant glass are increasingly common. These investments reduce insurance premiums and appeal to tenants seeking continuity.

Smart technology & automation

Smart buildings go beyond thermostats. In commercial spaces, AI‑driven inventory systems, self‑order kiosks and automated kitchens will be normalized in 2026. Integrated IoT systems enable smart lighting, automated temperature control and predictive maintenance sensors. The Autodesk Digital Builder 2026 report predicts widespread adoption of IoT sensors and digital twins, where sensors monitor energy consumption, structural health and environmental conditions in real time to reduce maintenance costs. Experts also expect AI design tools that let users describe their intent while software builds out the details.

Hybrid, wellness‑centered spaces

Commercial design is becoming more flexible and experiential. Tenants prefer strategic neutral interiors—clean lines and neutral tones that can be personalized. Durable, low‑touch materials like quartz composites and antimicrobial metals reduce maintenance. Tunable white LEDs and occupancy‑sensitive lighting improve energy savings and human comfort. Visual wayfinding—color‑zoned corridors and flooring transitions—helps visitors navigate without constant signage. Lobbies now mimic hotel lounges with subtle lighting, warm seating and natural materials. Biophilic touches—plants, wood and stone—create inviting environments. For restaurants and retail, omnichannel convenience means spaces that blend shopping, dining and entertainment; outdoor seating and sensory‑rich experiences are key.

Modular interiors and micro‑luxuries

Modular, demountable interiors allow offices to adapt quickly; Allied Modular estimates they reduce re‑fit costs by up to 20 % and cut project timelines by 50 %. Hidden infrastructure (flush lighting and concealed conduit) creates sleek ceilings, and micro‑luxuries like soft‑close restroom stalls and touchless elevators deliver high perceived value at low cost.

Rising costs and supply pressures

Tariffs, material scarcity and labor shortages will keep upward pressure on costs. Lessen warns that vendors should lock in budgets early because materials and logistics could push costs up 4–8 % year over year. Labor shortages in skilled trades mean longer lead times and premium pricing. Appliances, HVAC equipment and windows remain difficult to source. Advance Design Studio notes that concrete prices rose 13.9 % year over year and steel/aluminum by 16.7 %. As a result, many homeowners choose to stay put and reinvest in existing homes.

Emerging Tools & Technologies

AI‑powered design and project management

Generative AI is changing how homes and businesses are designed. According to Spaciable, AI copilots will be embedded in 80 % of enterprise applications, enabling users to describe their vision while software generates detailed plans. AI agents and hyper‑automation combine artificial intelligence with robotic process automation and low‑code tools to handle repetitive tasks like permitting, cost estimation and scheduling. On construction sites, AI design assistants will optimize layouts and automatically check building codes.

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Digital twins, VR & immersive experiences

Digital twins create a virtual replica of a physical building, integrating architectural plans, sensor data and operational metrics. They allow stakeholders to simulate designs, monitor construction progress and optimize energy efficiency. VR and extended reality enable immersive walk‑throughs where clients can experience layouts, lighting and finishes before construction. Autodesk experts say IoT sensors and digital twins will become standard, monitoring energy consumption and structural health in real time. These tools improve collaboration, shorten design cycles and reduce costly change orders.

Supply‑chain technology and robotics

Labour shortages and material bottlenecks are prompting adoption of robotics, 3D printing and modular construction. Autodesk experts predict a surge in modular and prefabricated construction, which uses precise 3D models to streamline assembly. Robotics and automation will help keep pace as retirements outnumber new workers entering the trades. Contractors can also leverage project value calculators and vendor lead‑time tracking tools to forecast budgets and avoid mid‑year price spikes

Conclusion

The renovation landscape in 2026 is defined by practicality, wellness, sustainability and technology. Homeowners and small‑business owners are investing in long‑term value—upgrading outdated systems, embracing smart home features and designing spaces that support health and flexibility. Meanwhile, commercial clients are prioritizing sustainability, climate resilience and experiential design.

Despite cost pressures and supply‑chain challenges, the market outlook remains positive, with robust spending projections and high marketing ROI.

If you’re planning a remodel or commercial renovation in 2026, Haus Interior can help. Our team stays ahead of industry trends and leverages cutting‑edge tools— from digital twins and VR to AI‑driven project management—to deliver stunning, efficient spaces. We offer end‑to‑end services for residential and commercial projects, including design, permits, construction and interior finishing.

Contact us today to schedule a consultation and discover how we can transform your space while maximizing your return on investment.