75% of Americans would rather renovate their home than take a dream vacation

We all have dream vacations. For some of us, it might be a week on a beach in Hawaii. For others, it’s a month in an Italian villa. Yet, when asked hypothetically to choose between taking a dream vacation or renovating their homes, American homeowners overwhelmingly choose investing in renovations.

Rocket Mortgage surveyed 1,018 U.S. homeowners and found that 3 out of every 4 homeowners would rather spend a lot of money renovating their homes than the same amount on a dream vacation. Put simply: They prioritize long-term happiness and satisfaction at home over the dopamine hit of a short-term splurge somewhere else.

These results support a greater homeownership trend of viewing the home as a long-term investment. American homeowners are spending more to buy a home they love – and staying in their homes longer. A separate Rocket Mortgage survey noted for 1 in 3 first-time home buyers (34%), a first home is a forever home, and that more than half of those surveyed (52%) anticipate living in their first home for more than a decade.

Survey results from the more recent study indicate homeowners plan to use different funding sources to transform their homes. The survey also asked them about their top renovation projects and what’s influencing their choices, among other topics. The bottom line: A luxury vacation can be very satisfying, but dream getaways aren’t nearly as compelling as a dream home.

Key takeaways:

• Three-quarters of American homeowners would rather spend $20,000 on home renovation costs than on a dream vacation.
• More than half (53%) of survey respondents plan to fund renovation projects with savings.
• Over half (53%) say that friends and family influence their renovation choices the most.
• Nearly half (47%) of all homeowners say resale value factors significantly into their renovation decisions.
• More than a quarter (28%) of respondents say that a dream kitchen remodel would feel more satisfying than taking a luxury vacation.

Kitchens and bathrooms lead renovation choices

For as long as Americans have owned homes, they’ve wanted to fix them up to be bigger, better, and more comfortable places to live. Yet, one room in the home is the key that unlocks homeowner happiness: an upgraded, roomy, and modern kitchen.

One out every four homeowners say that if they were going to begin renovations on any interior part of their home, they would choose their kitchen. In addition, 28% of respondents say a dream kitchen remodel would be more satisfying than a luxury vacation.

Other homeowners favor upgraded outdoor spaces or bathrooms for their dream renovation. Insights from the survey reveal that 23% of respondents would find a beautifully redesigned outdoor space more satisfying than a luxurious vacation, while 20% say they’d prefer a dream bathroom remodel. Almost 17% say they’d opt for a home addition instead.

Data from Harvard University’s Joint Center for Housing Studies (JCHS) points to similar conclusions: Americans are more interested in fixing up bathrooms and kitchens now than they were roughly 30 years ago.

When asked what interior home improvement project would be their top choice, 28% of Rocket Mortgage survey respondents prioritize a bathroom remodel, while 25% select a kitchen remodel and 21% choose repainting and other cosmetic fixes. Another 13% of respondents say they’d prioritize new flooring, 10% say they’d finish the basement, and just 2% choose new lighting.

A similar question about respondents’ top choice of exterior home improvements yields a wider range of results:

• Landscaping: 23%
• Replacing windows or doors: 21%
• Repainting or other cosmetic fixes: 15%
• Porch or deck: 15%
• Roof: 8%
• Siding: 7%
• Home addition: 4%
• Exterior lights: 3%
• Pool or hot tub: 3%

Home renovation costs: How people pay for them

Of course, you can’t actually renovate until you’ve lined up the money to pay for it.

Almost 53% of survey respondents say they’d pay for renovations out of existing savings, while the remaining 47% say they’d borrow money in some capacity – such as refinancing for home improvement – to get things done.

Nearly 13% of respondents say they’d opt for a home equity line of credit (HELOC) to pay for their renovations, while 10% say they’d select a home equity loan. Another 10% say they’d put renovation expenses on a credit card, and 7% say they’d take out a personal loan. Rounding out the least popular financing choices are a cash-out refinance at 4%, borrowing from friends or family at 2%, and a government renovation loan – such as the FHA 203(k) loan – at 1%.

Perhaps the most notable data point here is the relative insignificance of cash-out refinancing. This strategy saw a spike in activity in 2021, when low interest rates prompted homeowners to refinance mortgages in record numbers, and then a reduction in 2023, when higher interest rates pushed potential borrowers away. According to an August 2025 report from ICE Mortgage Technology, lenders have seen renewed interest in cash-out refinancing, driven by record home equity and acceptance of higher mortgage rates.

All in all, these numbers represent big bucks. According to the annual “Improving America’s Housing” report from Harvard’s JCHS, Americans are forecasted to have spent $608 billion in 2025 on remodeling their homes – a stunning figure that’s roughly 50% higher now than it was before the Covid-19 pandemic.

Reasons for renovations

While resale value is still a major inspiration for home improvements, it is by no means the only reason homeowners are taking this leap. Nearly half (47%) of respondents to the recent Rocket Mortgage survey describe resale value as factoring “a great deal” or “a lot” into renovation decisions, while 29% say resale value factors in “a moderate amount” and 16% say it matters “a little.” Just over 8% of respondents say resale value doesn’t factor into their renovation decisions at all.

That’s a significant number of homeowners who don’t consider resale value critical to renovation choices. These people are most likely investing in home improvement mainly for lifestyle reasons and daily enjoyment of their home.

They also could be investing in home improvement to keep up with the Joneses – even if the Joneses are members of their own family.

When asked what influences their renovation choices the most, respondents cite friends and family (53%), followed by contractors (31%), home design shows such as “Fixer Upper” (27%), and home design articles (24%). Other influences include social media sites such as Pinterest, TikTok, and Facebook (20%), as well as real estate agents (14%).

The bottom line: How and where are homeowners renovating in 2026?

When given a hypothetical option to take a dream trip or pursue home renovations, more Americans are willing to put their dream vacation on the back burner – especially if that back burner sits atop a modern stove in a newly remodeled kitchen.

Today’s homeowners are willing to make a financial sacrifice to finance their renovations, including by dipping into their savings and increasing their debt. And, according to the recent survey, homeowners who make these investments are thinking not only about the future resale value of their home but also about enjoying the fruits of their labor.

Methodology

Rocket Mortgage surveyed 1,018 homeowners, age 18 and older, to find out how Americans feel about home renovation costs. The survey was conducted online in December 2025.

Rocket Mortgage is a trademark of Rocket Mortgage, LLC or its affiliates.

Refinancing may increase finance charges over the life of the loan.