Nearly Half of Home Remodels Go Over Budget, New Survey of Homeowners Finds

Analysis of industry data flags the gap between homeowners’ initial remodeling budgets and actual project costs.

RICHMOND, TX, UNITED STATES, October 14, 2026 /EINPresswire.com/ — Industry research suggests that a significant share of homeowners completing home renovation projects ultimately spend more than the budgets they initially planned.

The findings reflect a broader challenge facing homeowners across the country. Recent national research from Angi found that 43% of homeowners who recently hired a professional completed their projects above their original estimates.

For homeowners planning a kitchen, bathroom, interior home renovations, or other major renovation, the difference between an initial budget and the final project cost can come from several factors, including material prices, changes in project scope, labor, hidden conditions and decisions made during construction.

“Most homeowners start a remodeling project with a number in mind, but that number is based on what they know before the work begins,” said Habib Othman, co-owner of Maestro Property Solutions, a Texas-based home remodeling company. “Once we start opening things up, making selections and working through the actual project, we can find problems that weren’t visible at the beginning.”

Why remodeling budgets are going over

The reasons behind remodeling cost overruns are not always straightforward.

According to Houzz’s 2026 U.S. Houzz & Home Study, 52% of homeowners who exceeded their initial renovation budgets said products or services cost more than expected. Another 35% chose higher-end materials than originally planned, while 31% expanded their project scope during the renovation. Unexpected construction issues were also reported as a factor.

This means a project can go over budget even when there is no single major problem.

A homeowner may decide to upgrade the countertop after seeing material samples, add additional cabinetry, change the shower design, replace an item that was originally going to be reused, or find an issue once an existing wall or floor is opened.

“Sometimes the budget doesn’t change because something went wrong,” Othman said. “The homeowner sees an opportunity to improve something during the renovation, and the scope naturally grows. Other times, we uncover something that simply couldn’t be seen before demolition.”

Material costs remain another pressure point

The cost of materials is another factor homeowners need to consider when setting a remodeling budget.

The National Association of Home Builders reported that residential building material prices, excluding energy, were 5% higher in July 2026 than they were a year earlier. Some individual materials saw considerably larger increases. Softwood lumber prices, for example, were up 17.3% year over year.

For homeowners, this means the price of materials can have a noticeable effect on the final remodeling cost, particularly on larger projects where cabinets, flooring, countertops, tile and other materials make up a significant portion of the budget.

Othman said homeowners should also pay attention to what is actually included in a remodeling estimate.

“A $30,000 estimate doesn’t tell you much by itself,” Othman said. “You need to know what materials are included, what the labor covers, what has been excluded and what happens if the homeowner chooses something that costs more than the original allowance.”

What homeowners can do to avoid major budget surprises

While not every remodeling cost overrun can be prevented, homeowners can reduce the likelihood of major surprises by planning the project in detail before construction begins.

MPS recommends that homeowners:

– Get an itemized estimate rather than looking only at the total project price.
– Understand exactly which materials and fixtures are included.
– Ask about material allowances and what happens if selections cost more.
– Clarify how unexpected repairs or changes will be handled.
– Avoid making major scope changes without understanding their effect on the budget.
– Keep a contingency amount available for unforeseen conditions.

The need for careful planning comes at a time when Americans continue to spend hundreds of billions of dollars on home improvements and repairs. Harvard University’s Joint Center for Housing Studies estimates that homeowner remodeling and repair spending will remain around $519 billion through mid-2027, even as the growth of remodeling spending slows.

For homeowners, the goal is not necessarily to create a budget that can never change. Instead, it is to understand why the budget might change and have a plan for handling those changes before the renovation begins.

“The best remodeling budget is not necessarily the lowest number,” Othman said. “It’s the budget where the homeowner understands what they’re getting, what could change and how those changes will be handled.”

About Maestro Property Solutions

Maestro Property Solutions is a Texas-based home renovation company providing residential renovation and remodeling services throughout the Greater Houston area.

The company works with homeowners on kitchen, bathroom, home renovations and other residential improvement projects, helping clients plan and execute projects around their goals, property, and budget.

For media inquiries:

Habib Othman
Maestro Property Solutions
+1 832-460-1987
info@mpsllctx.com
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