Tariffs are pricing Americans out of renovations, research shows

Tariffs are pricing Americans out of renovation work, research shows

Throughout 2025, many industries have seen increases in the price of goods due to tariff changes. Often these price increases are passed on to consumers, ultimately impacting the choices they make in their daily lives. In collaboration with Pollfish, Eagle woodworking conducted a survey of 1,000 U.S. homeowners on Nov. 18 to determine how rates influence their renovation decisions.

Survey results show that many Americans are postponing their renovations until a more favorable time, while others are forgoing them altogether due to rising prices. Let’s take a look at the survey results to see where the economic tensions lie and how Americans are scaling back their renovation plans.

Key Takeaways

• Renovation costs are increasing. More than half of homeowners said the rates increased their renovation costs.
• Homeowners are hesitant to plan renovations because of the cost. Nearly 70% of homeowners say they are concerned that trade policies will make housing projects unaffordable.
• Second-hand products are gaining popularity. Secondhand or upcycled goods are preferred by 24% of homeowners.

What renovations are Americans planning?

Instead of tackling major renovation projects, homeowners are tempted to purchase new furniture and appliances, but even these purchases are being postponed. Of those planning a renovation, 39% are focusing on remodeling and furnishing a bathroom, closely followed by a third (33%) planning to remodel or redecorate the kitchen.

Twenty-four percent said they have other remodeling or decorating plans. Interestingly, almost a quarter (22%) say they are not planning any renovations this year, and only 12% plan to add an expansion.

How tariffs have disrupted renovation plans

The rates, announced, established or expected, have already had an impact on the housing construction and renovation sector. In fact, more than half (52%) of survey respondents said the tariffs have increased costs for their projects. As a result, 30% have halted their projects in the hope that prices would stabilize or fall in the future.

In April, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI)suppliers increased their prices by 6.3%. Some builders pre-order materials to keep costs down, but often have no place to store them.

However, according to the latest HMI research37% of builders reported that they had reduced prices in June, which is good news for consumers. But despite these reported price reductions, between 23% and 26% of respondents say they are turning to cheaper or second-hand goods to keep renovation costs down.

What rates do homeowners charge

Part of the problem is the uncertainty about which tariffs will be introduced and exactly which prices will be affected. This level of unpredictability in material costs can make homeowners hesitant to start a renovation project.

According to the survey, 84% are aware that tariffs will negatively impact renovation costs, and 67% are concerned that these trade policies will afford them the renovations they want. Cost increases for home renovation projects among those surveyed range from less than $500 to more than $10,000, with 80% reporting that rates have increased their rates and 40% reporting cost increases of more than $1,000.

Impact on homeowners’ decision making

More homeowners are staying in their homes longer than in the past, an average of 11.9 years in their homes compared to 6.5 years 20 years ago, according to Redfin. Many older homeowners choose aging in place instead of downsizing or moving to a residential care center.

This tendency to stay put means that homeowners will have to focus on maintenance and renovations, which is necessary to maintain the home in the long term. With 27% of homeowners saying rates have significantly influenced their decisions, some updates and renovations may be put on the back burner, which could lead to the need for more extensive work in the future.

The survey found that 62% of homeowners say rates have significantly or negatively influenced their decisions about remodeling or decorating. About a fifth of homeowners avoid a kitchen renovation or bathroom renovation altogether (21% and 20% respectively). If the tariffs were lifted, some of these homeowners would no longer avoid renovating these spaces, which could make things more comfortable for those who remain in their homes for extended periods of time.

What happens when the tariffs are lifted

While you can’t predict the future, we have to imagine that you wake up tomorrow and the tariffs are lifted. In this scenario, 40% of homeowners say they would expand or accelerate their renovation plans. But there is still some uncertainty. More than a quarter (27%) of homeowners say they are unsure. These figures provide room for consumer behavior to change in response to future economic policies.

Be creative with your renovation strategy

While Americans are eager to invest in their homes to make them more comfortable and functional, many are waiting for costs to drop before embarking on remodeling and redecorating projects. It can be easy to hear about economic policies without always seeing their real-world impact, but tariffs have shown how these policies shape Americans’ daily decisions. Tariffs are not just a supply chain issue, something major companies and suppliers have to worry about; they are directly responsible for reshaping homeownership and renovation behavior in 2025.

What can you do to help your customers deal with the uncertainty surrounding rates? By reconsidering the scope of the project and recommending smaller upgrades or remodels, clients can refresh their homes without being as vulnerable to price increases and uncertainty. If you focus on smaller projects, such as replacing cabinet doors and hardware or upgrading existing drawers to new dovetail drawers and specialty drawers, you can upgrade the space without the expense of a full renovation.

This story was produced by Eagle woodworking and reviewed and distributed by Stacker.