New data on home renovations is in, and even with higher costs, Americans are still spending on their homes.

I'm Kathy Fedke, and this is real estate news for investors.

This is Real Estate News with Kathy Fedke.

A new report from Block Renovation shows that while the economy is putting pressure on homeowners,

it's not stopping them from remodeling.

In fact, 42% of homeowners say the economy has impacted their renovation plans, but they're still moving forward.

Only a smaller number are scaling back or pausing projects.

Many are choosing to absorb higher costs instead.

And here's something interesting. About 70% of these projects are being paid for with personal

savings. That means homeowners are being cautious but still committed. So what are they

renovating for? Well, it turns out it's not just about boosting home value anymore.

68% of homeowners say they're renovating to make their homes more functional, not to prepare for

resale. And that shift is being driven by how people are living today. More than one in five

households now includes multiple generations under one roof. That could mean aging parents,

adult children, or both. And because of that, we're seeing more interest in flexible living spaces.

17% of homeowners say they're considering building an ADU, which is known as an accessory dwelling

unit, and many plan to use those spaces for family members or caregivers.

Another big trend? Artificial intelligence. Nearly one and four homeowners now use AI tools when

planning renovations. That's up sharply from just 9% last year. And among millennials, adoption is even

higher. Most of those using AI say it helped them

make decisions, especially when it comes to design, layout, and estimating costs. But despite all

this progress, one major problem remains, trust. 30% of homeowners say finding a trustworthy

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