Homeowners Prioritize Function Over Resale Value as AI Adoption Jumps in Renovation Planning
Nearly a quarter of homeowners now use AI tools to plan renovations, up from 9% a year ago, according to Block Renovation's 2026 report. The survey of 1,059 US homeowners found that 84% of those using AI said the tools influenced at least one renovation decision, with design, layout planning, and cost estimation among the most common applications.
The findings reveal a fundamental shift in why Americans renovate. Sixty-eight percent say they're updating homes for functionality rather than resale value, a change tied directly to evolving household structures.
Multigenerational Living Drives Renovation Demand
More than one in five respondents reported two or more generations of adults living in their home. Seventeen percent are interested in or actively considering building an accessory dwelling unit (ADU), with 39% of those saying they'd use the space for family care.
These trends point to homeowners retrofitting properties to accommodate long-term needs rather than chasing market appeal.
Economy Slows Plans but Doesn't Stop Them
Forty-two percent of homeowners said economic conditions affected their renovation plans. Yet most pressed forward anyway. Thirty-eight percent said they would absorb additional costs or stay the course, compared to just 9% who would reduce scope and 8% who would pause.
Seven in ten projects are funded through personal savings, suggesting homeowners are approaching renovations with careful budgeting.
Trust Emerges as Bigger Problem Than Cost
Finding a trustworthy contractor has become the top barrier for homeowners, cited by 30% of respondents. High renovation costs ranked second at 24%, while 20% said uncertainty about final costs created hesitation early in the planning process.
AI adoption is especially high among Millennials, with 42% of that generation using the tools during planning. For construction professionals, this signals a growing client base expecting data-driven estimates and design options.
Learn more about AI for Real Estate & Construction to understand how these tools are reshaping client expectations and project workflows.
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