Why More Homeowners Are Skipping Vacations and Investing in Their Homes Instead

When given a straight choice between booking the trip of a lifetime and transforming their living space, most American homeowners are reaching for the paint swatches over the plane tickets. According to Rocket Mortgage’s home renovation survey, three out of four homeowners would choose a $20,000 renovation over a dream vacation — a finding that signals a profound shift in how people think about spending, comfort, and long-term financial wellbeing. The survey, which polled 1,018 U.S. homeowners in December 2025, reveals a population that is increasingly invested — literally and emotionally — in the places they call home. From kitchens and bathrooms to curb appeal and energy-efficient windows, renovation priorities are reshaping household budgets and redefining what it means to treat yourself in 2025.

The Great Trade-Off: Renovations Beat Vacations

The headline number is hard to ignore. According to a Rocket Mortgage survey of 1,018 homeowners, 75% said they would choose a $20,000 home renovation over a dream vacation if forced to pick one. That is not a slim majority — that is an overwhelming consensus. And the emotional satisfaction that drives the decision goes deeper than square footage or resale listings.
A full 28% of respondents said a kitchen remodel feels more satisfying than a vacation. Think about what that means: for more than one in four homeowners, tearing out old cabinetry and installing new countertops delivers more joy than sitting on a beach in Bali or exploring a European city. The home, for many Americans, has become the destination.
This shift did not happen overnight. The pandemic years fundamentally changed how people relate to their living spaces. Homes became offices, classrooms, gyms, and restaurants simultaneously. That experience appears to have left a lasting imprint on spending priorities, and homeowners are still acting on it.

What Homeowners Actually Want to Renovate

So where does the money go when homeowners commit to a project? The Rocket Mortgage survey breaks down preferences by interior and exterior improvements, and the results offer a telling look at what matters most.
On the interior side, bathroom remodels lead the pack at 28%, followed closely by kitchen renovations at 25%. Both spaces share something in common: they are high-traffic, high-utility rooms that people interact with every single day. A dated bathroom or an inefficient kitchen layout is a daily friction point, which makes improving it feel immediately rewarding.
Exterior preferences tell a slightly different story. Landscaping topped the outdoor category at 23%, with window and door upgrades close behind at 21%. Landscaping improvements offer both aesthetic payoff and the kind of curb appeal that matters when it comes time to sell. Windows and doors, meanwhile, deliver functional upgrades — improved insulation, security, and natural light — alongside a visual refresh.
Taken together, these priorities suggest homeowners are thinking about both livability and long-term value. According to a Rocket Mortgage survey, 47% of respondents said resale value factors significantly into their renovation decisions. Nearly half of all homeowners are not just renovating for today — they are building equity and marketability for tomorrow.

Who Influences Renovation Decisions

Even in an age of algorithm-driven content and endless social media inspiration, the most powerful voice in a homeowner’s renovation journey still belongs to the people they know personally. According to a Rocket Mortgage survey, 53% of respondents said friends and family have the greatest influence on their renovation decisions.
Contractors came in second at 31% — a reminder that professional guidance still carries significant weight once a project is underway. Design shows rounded out the top three at 27%, suggesting that television and streaming content continue to spark renovation ambitions across the country, even if they do not ultimately drive the final call.
This hierarchy makes intuitive sense. A friend who recently gutted and rebuilt their master bathroom can speak to the real costs, the real headaches, and the real rewards in a way that no television program can. That word-of-mouth trust is a powerful motivator.

How Homeowners Are Paying for It All

Renovation enthusiasm is one thing. Funding it is another. The Rocket Mortgage survey found a fairly even split between homeowners who pay out of pocket and those who borrow: 53% rely on personal savings, while 47% use some form of financing.
Among those who borrow, home equity lines of credit (HELOCs) were the most common tool at 13%, followed by home equity loans at 10% and credit cards at 10%. Personal loans accounted for 7% of respondents, while cash-out refinancing was used by 4%.
The preference for savings reflects a conservative instinct, but the strong showing for equity-based financing tools signals that homeowners are aware of the value sitting in their walls and are willing to put it to work. With renovation spending reaching significant levels nationally, having a clear financing strategy has never been more relevant.

The Bigger Picture

The renovation boom of 2025 is not a niche trend — it reflects a broad cultural realignment around home investment. According to a Rocket Mortgage survey, the data consistently points to homeowners who are emotionally engaged, financially strategic, and deeply influenced by the people around them. Whether the motivation is personal comfort, long-term resale value, or simply the satisfaction of a space that finally works, the American homeowner has made a clear statement: home comes first.

References

Rocket Mortgage Home Renovation vs. Dream Vacation Survey, 1,018 U.S. homeowners, December 2025
Harvard Joint Center for Housing Studies (JCHS), remodeling expenditure data referenced in Rocket Mortgage survey materials, 2025