As the housing market continues to evolve and mortgage rates remain elevated, many U.S. homeowners are choosing to invest in their current properties rather than enter the uncertain market for a new home. New data from Nationwide shows that many are opting instead to invest in home renovations, repairs, and other upgrades to meet their needs. According to Nationwide's most recent Homeowners Survey, 51% of homeowners say they have completed a major home renovation project within the past two years.

Empty Nesters Spending Big on Home Renovations 

While share of empty nesters undertaking home renovations is similar to that of general U.S. homeowners, empty nesters are spending significantly more on these projects. The survey revealed that they spent an average of $8,670 on home renovations compared to $5,128 for the typical homeowner. They are also investing in more large-scale projects, outspending general homeowners on kitchen remodels and full home renovations. 

A comparison of renovation spending by project type: 

• Kitchen remodels: U.S. Homeowners - $9,702 average; Empty Nesters - $18,672 average 

• Full home renovations: U.S. Homeowners - $36,900 average; Empty Nesters - $90,000 average 

• Window replacements: U.S. Homeowners - $4,917 average; Empty Nesters - $15,375 average 

"A complex housing market has many homeowners reconsidering plans to sell. For empty nesters, that means upgrading their current homes to meet their needs in the next life stage, rather than relocating," said Casey Kempton, Nationwide's President of P&C Personal Lines. "Unfortunately, our research shows that homeowners often overlook necessary policy adjustments after significant renovations, potentially leaving them underinsured in the event of a catastrophe. Every homeowner should review their home insurance coverage with their independent insurance agent regularly to avoid potential gaps."

Homeowners Confident in Their DIY Abilities

Three in four homeowners cite high costs as a key challenge when seeking contractors for home maintenance work and less than half of homeowners found it easy to find reputable contractors. In this environment, more homeowners are tackling significant DIY projects. The survey revealed that while most homeowners still prefer professional help for major renovations, 38% have taken on projects typically reserved for experts, like kitchen remodels or even home additions. 

Top DIY Projects Among Homeowners:

• Basement renovations: 43% 

• Front door replacements: 41% 

• Bathroom remodels: 39%

• Kitchen remodel: 38%

• Full-home remodel / "gut" renovation: 36%

• Home addition (e.g., additional rooms, separate garage, etc.): 35%

"Although DIY can be an empowering choice, it also introduces risks that may compromise home safety and insurability. Homeowners may not realize that taking on complex projects themselves could impact their insurance," Kempton noted. "While DIY projects might save on upfront costs, mistakes could lead to safety issues and unexpected expenses. We always recommend consulting with an insurance agent before diving into any major DIY renovation to ensure that all potential risks are covered." 

Interestingly, while almost all homeowners say they rely on the internet for DIY advice, there's a generational split in how they gather information. Empty nesters are less likely to use social media for project tips—38% of empty nesters compared to 48% of U.S. homeowners overall—relying more on other online resources. 

Agents as Partners in Home Projects 

Renovations are a significant investment, and updating insurance coverage to reflect these changes is crucial. Yet, the survey found that 55% of homeowners who completed major renovations in the past two years have not adjusted their insurance policies, leaving themselves at risk of being underinsured. 

Insurance agents can be a valuable home renovation partner—not just for updating coverage afterward but also in the planning phase. Many agents are well-connected in their local communities, with 76% of agents surveyed saying they often recommend trusted contractors to clients planning major projects. Homeowners who partner with agents early can benefit from smoother project execution and the peace of mind that their insurance fully covers their upgraded home. 

As renovations become more common, it is vital for homeowners to work with agents to review and update coverage to avoid gaps particularly following home renovations and unexpected financial hardships should disaster strike. They can avoid costly surprises by ensuring their policy reflects the full scope of their upgrades.