Financial Pressures Fuel Smarter, Greener Remodeling Decisions

With high interest rates and an unpredictable market, many homeowners are remodeling instead of moving. But are sustainability and cost savings driving their decisions? Find out what the data says.

Homeowners are increasingly choosing to stay in their current home and remodel rather than put it up for sale. With interest rates hovering around 7% and the economy still uncertain, many are deciding it's safer and smarter to improve their home rather than take a chance on the current housing market.

COGNITION Smart Data shows that the top motivations for remodeling include a preference to improve their existing home (36%) and the potential cost savings from energy-efficient upgrades (35%). Comfort and aesthetics, while still relevant, were a lower-tier priority at 20%, showing that practical, performance-driven improvements are taking precedence.

Finances remain a major factor in remodeling decisions, and sustainable remodeling is increasingly being seen as a way to save money over time. Rather than spending more on energy bills or future retrofits, homeowners are making strategic upgrades now that will pay off in the long run.

According to COGNITION, 34% of homeowners are very conscious about the environmental impact of remodeling activities, and another 21% are extremely conscious. Only 1% reported being unaware or unconcerned, underscoring growing awareness of sustainability in home improvement.

So, what systems are homeowners prioritizing? Popular system upgrades include:

• Energy systems (34%), such as solar panels that reduce utility costs and improve long-term energy resilience
  
  
• Healthy home systems (24%), including ERVs and indoor air quality monitors that enhance occupant well-being
  
  
• HVAC upgrades (16%), which improve system efficiency and deliver better comfort year-round

While interest in sustainable solutions is strong, 49% are still concerned about upfront costs, making it critical for builders and contractors to communicate long-term savings and return on investment. 

Another 19% are concerned about finding qualified contractors. Communicating relevant certifications and sustainability credentials can help establish trust and reinforce technical competency.

Position your business as the go-to resource by offering the knowledge and transparency today’s homeowners expect.

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About COGNITION Smart Data

COGNITION Smart Data, Green Builder Media’s pioneering suite of market intelligence and data services, uses cutting-edge cognitive learning technology to deliver the insights you need to align products, messaging, and innovation with what homebuyers actually want.

COGNITION is the only market insights platform specifically engineered for the building industry’s sustainability transformation. We track evolving consumer behaviors, emerging technologies, policy shifts, competitive benchmarks, and market demand signals so you can adjust faster, sell smarter, and grow revenue—confidently.

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