How Contractors Can Get More Business In The 2026 “Stay and Improve” Economy

From 2020 to 2022, millions of homeowners received mortgages rates between 2% and 4%. Moving into a new home today at rates near 6% would effectively double their monthly mortgage payment. That is a tough place for the average family to find themselves in. 

So, instead of moving, people are getting creative. They're staying put and improving the home they live in. 

The HIRI (Home Improvement Research Institute) Contractor Sentiment Tracker Q4 2025 shows 43% of contractor projects today include enhancement or remodeling work, the largest category in home improvement. 

This is a real shift for the industry. Demand used to follow home sales, remodeling before or after the sale/purchase. Now it's coming from people who bought years ago, plan to stay and want to find creative ways to love the home they’re in.  

Bathrooms lead the way at 63% of remodeling projects, followed by kitchens and living spaces. These projects often create a refreshed feel in the home and make what’s old seem new.   

What These Homeowners Actually Care About

When homeowners expect to stay in their homes for the next 10–15 years, their priorities shift. Instead of focusing on resale value, they begin asking practical questions: 

• How can I make my home more efficient?
  
  
• What will make daily life easier?
  
  
• Will the layout still work as we get older?
  
  
• Can we improve the home without overextending financially? 

What Contractors Can Do To Appeal To Homeowners In 2026

Talk About Projects In Terms Of “How Life Gets Better”

Homeowners who plan to stay aren't buying a renovation, they're buying a better version of their home that's worth remembering. 

For example:

• A bathroom renovation becomes a walk-in shower upgrade that improves comfort and safety over time.

• A kitchen remodel becomes a space for family gatherings and hosting, not just new cabinets and countertops.

The construction details matter, but right now, they're not the main thing that gets someone to yes.

Help Them Think in Phases

Most people aren't looking to gut the whole house at once. They'd rather tackle things over time.

For example:

Year 1 Bathroom remodel ($12k–$18k)

Year 2 Kitchen upgrade ($15k–$25k)

Year 3 Energy-efficiency improvements ($8k–$20k)

Contractors who help homeowners plan multi-stage improvement roadmaps can build longer relationships and attract more projects over time. You may not get as many massive gut and reno projects, but you can do more mid-size jobs and maintain or even increase lifetime value. 

Help Make the Decision Easier

These homeowners do their research. They compare contractors, take their time to decide and look for reasons to feel confident before going for it.

The easiest thing you can do is give them clear numbers early. Not a vague estimate, a real range. Something like: "Most walk-in shower conversions for a home like yours run between $9,000 and $14,000 depending on materials."  

Contractors who offer transparent and honest pricing, help people see long term potential and frame projects around real-life needs are going to be in a good position to earn the work. 

If you want to connect with homeowners who are actively planning projects, HomeBuddy can help. Our exclusive leads and in-person appointment-setting programs put you in front of people who are already exploring their options and seriously considering moving forward. These folks are vetted and ready to speak, all you have to do is show up and stand out.