Hiring a Contractor Statistics You Need to Know in 2026

Home improvement market & spending statistics

• U.S. homeowner spending on improvements and maintenance is projected to reach $518 billion by the end of 2026. (Source: Harvard Joint Center for Housing Studies, LIRA, 2026)
• Renovation and repair spending is growing again — 2.1% year-over-year projected for mid-2026, easing to 1.6% by year end. (Source: Harvard JCHS LIRA, 2026)
• Annual improvement spending stood at $509 billion in the fourth quarter of 2025. (Source: Harvard JCHS LIRA, 2026)
• The remodeling downturn bottomed at -2.6% growth in Q3 2024; spending turned positive again in Q2 2025. (Source: Harvard JCHS LIRA, 2026)
• 54% of homeowners renovated in 2025, 52% decorated, and 47% made repairs. (Source: 2026 U.S. Houzz & Home Study)
• The median renovation spend held at $20,000 in 2025, off the 2023 peak of $24,000 — while 90th-percentile spend rose 7% to $150,000. (Source: 2026 U.S. Houzz & Home Study)
• Half of homeowners (50%) plan projects in 2026, with a median planned spend of $15,000. (Source: 2026 U.S. Houzz & Home Study)
• The top renovation triggers: finally having the time (40%) and finally having the money (36%). (Source: 2026 U.S. Houzz & Home Study)

How homeowners find & vet contractors

Before a contractor ever gets a phone call, homeowners have already screened them online — mostly through reviews.

• 97% of consumers read reviews for local businesses, and 41% now "always" read them when browsing — up from 29% a year earlier. (Source: BrightLocal Local Consumer Review Survey, 2026)
• 47% of consumers won't use a business that has fewer than 20 reviews. (Source: BrightLocal Local Consumer Review Survey, 2026)
• 92% care about star ratings, and 68% will only use a business rated four stars or higher. (Source: BrightLocal Local Consumer Review Survey, 2026)
• Positive reviews make 85% of people more likely to use a business; negative reviews deter 77%. (Source: BrightLocal Local Consumer Review Survey, 2026)
• 89% of consumers expect owners to respond to reviews, and the average consumer checks six different review sites before choosing. (Source: BrightLocal Local Consumer Review Survey, 2026)

Contractor fraud & scam statistics

The reason homeowners vet so hard: contractor fraud is a billion-dollar problem, and it spikes after every storm.

• The FTC received 81,925 reports of home improvement scams in 2024. (Source: FTC Consumer Sentinel Network Data Book, 2024)
• The average home-improvement scam costs the homeowner about $1,800. (Source: Better Business Bureau, 2024)
• Post-disaster contractor fraud — "storm chasers" — cost Americans $9.3 billion in 2023 alone. (Source: National Insurance Crime Bureau, 2023)

The consistent red flags: demands for full payment up front, no local address, no written estimate, no license or insurance on request, and pressure to sign today. A licensed contractor puts scope, materials, timeline, and payment milestones in writing before work starts.

Remodeling ROI statistics

Which projects pay you back at resale? The 38th annual Cost vs. Value Report (115 U.S. markets, 28 projects) ranks them. Exterior projects dominate: 8 of the top 10 are exterior replacements, and a minor kitchen remodel is the only interior project in the top five. (Source: Zonda 2025 Cost vs. Value Report)

Table data: Zonda 2025 Cost vs. Value Report. A backup power generator entered the top 10 for the first time, exceeding 100% ROI in hurricane-prone regions.

Budget & overrun statistics

• 75% of renovating homeowners set an initial budget — but 37% exceeded it in 2025, outpacing the 35% who landed on target. (Source: 2026 U.S. Houzz & Home Study)
• Much of the overrun is deliberate: 35% chose higher-end materials than planned and 31% expanded scope mid-renovation. (Source: 2026 U.S. Houzz & Home Study)
• 84% of homeowners fund projects from savings, while 34% put renovation costs on credit cards — up 5 points year over year. (Source: 2026 U.S. Houzz & Home Study)
• On budgets above $50,000, financing diversifies: 23% use home-equity loans and 20% use cash from a home sale. (Source: 2026 U.S. Houzz & Home Study)
• 61% of Gen Z homeowners renovate right after buying — double the rate of Millennials (31%) and more than triple Gen X (19%) and Boomers (18%). (Source: 2026 U.S. Houzz & Home Study)

Skilled-trades labor shortage statistics

The other half of the hiring equation: there aren't enough tradespeople, and the pipeline is aging out faster than it refills.

• The construction industry must attract an estimated 349,000 net new workers in 2026 — and 456,000 in 2027 — just to meet demand. (Source: Associated Builders and Contractors, 2026)
• Construction had 292,000 unfilled job openings at the end of November 2025, up 90,000 in a single month. (Source: ABC analysis of BLS JOLTS, 2026)
• A majority of 2026 new-worker demand comes from retirements, not industry growth. (Source: ABC, 2026)
• Roughly one-fifth of all electricians are over age 55. (Source: ABC, 2026)
• Every additional $1 billion in construction spending creates demand for roughly 3,450 construction jobs. (Source: ABC workforce model, 2026)
• Nonresidential specialty trade contractors added 95,000 jobs between August 2024 and January 2026. (Source: ABC analysis of BLS data, 2026)

For homeowners, the practical effect is simple: good crews are booked, and the cheapest available bid is often available for a reason. See how we scope and price work in our San Antonio kitchen remodel cost guide.

Sources

Harvard Joint Center for Housing Studies (LIRA, 2026) · Houzz (2026 U.S. Houzz & Home Study) · Zonda (2025 Cost vs. Value Report) · BrightLocal (Local Consumer Review Survey, 2026) · Federal Trade Commission (Consumer Sentinel Network Data Book, 2024) · Better Business Bureau (2024) · National Insurance Crime Bureau (2023) · Associated Builders and Contractors (2026) · U.S. Bureau of Labor Statistics (JOLTS, 2025–2026). Statistics are quoted as published by each source; figures reflect the stated survey year. To request a correction, email services@ragingbullenterprise.com.