Bath and Kitchen Remodels Remain Strong Despite Economic Uncertainty

Written by:

Steve Marcinuk

Date:

29 Aug 2025

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Despite economic headwinds and market uncertainty, home renovation demand remains surprisingly resilient, according to Block Renovation CEO Julie Kheyfets, who says certain segments of the market are showing particular strength.

“Bath and kitchen remodels are always the workhorses of the renovation market,” Kheyfets says, referring specifically to major remodels involving general contractors and potential plumbing and electrical work. These projects, typically ranging from five to seven figures, continue to drive significant activity.

The Lock-In Effect

Current market dynamics are creating interesting patterns in renovation behavior, according to Kheyfets. “The folks who are enjoying their 3% rate from five years ago, a lot of those people are improving their homes,” she says, noting that many homeowners are choosing to adapt their current spaces rather than move.

This trend reflects both practical and strategic thinking, Kheyfets argues. Some homeowners are renovating with an eye toward future opportunities, “saying that by the time I’m ready to sell it and move to a new place, when rates do come down, it’ll be worth a lot more.”

Market Segmentation in Renovation Decisions

While overall renovation activity remains strong, Kheyfets notes some variation across market segments. “Renovations are pretty resilient to macro uncertainty,” she says, “and that’s because people plan for a pretty long time to go and improve and renovate their home.”

However, she observes different behaviors at different price points: “If they’re extremely cost sensitive or if they’ve just lost their job, for sure, they will pause that project. But a lot of folks have said like, you know what, as long as they can still afford it at the current pricing, I’m going to go ahead with it.”

The high-end market shows more sensitivity to economic conditions, according to Kheyfets. “Where I think there is some hesitation is at the higher end. So really big projects, you know, a whole home remodel, a gut remodel. People are saying, well, let’s see what the next 12 months will look like before I commit to this.”

Space Optimization Trends

Beyond traditional kitchen and bath updates, Kheyfets notes increasing interest in projects that maximize existing space. “A lot of people are looking to add square footage,” she says. “They might be turning a closet into a bathroom. They might be adding a bedroom. In some places, folks are adding a whole floor.”

This trend ties directly to broader housing market challenges, Kheyfets argues. “Given where housing supply is and just the state of affordability, a lot of people are trying to do more with the home that they have and the footprint that they have and create more space there.”