Why Homeowners Feel Stuck and Why Remodeling Is Gaining Momentum

Over the past two years, Pittsburgh homeowners have been navigating a new normal that includes elevated interest rates, lingering inflation, and ongoing questions around construction costs. These conditions have created hesitation, not because homeowners do not want to improve their homes, but because they want to make the right decisions.

National housing data shows a slowdown in home sales, but not a corresponding slowdown in homeowner investment. According to the Joint Center for Housing Studies at Harvard University, “remodeling spending has remained resilient as homeowners choose to reinvest rather than relocate, especially in markets with older housing stock like Pittsburgh.”

The takeaway for homeowners is clear;

Remodeling today is not about impulsive upgrades. It is about strategic, long-term planning that supports how you actually live.

What Has Actually Changed in the Economy (and What Hasn’t)

Interest Rates Are Reshaping Behavior
Mortgage rates remain significantly higher than pre-2020 levels. As a result, many homeowners are effectively locked into their current homes and are choosing to stay put rather than reenter the housing market.

What this means in practice:
Homeowners are staying longer and becoming more willing to invest in comfort, functionality, and durability. When moving is not attractive, improving what you already own becomes the logical alternative.

Construction Costs Are Higher but More Predictable
While construction costs remain elevated, the extreme volatility of the pandemic years has eased. The Producer Price Index for construction materials has stabilized compared to the dramatic spikes of 2021 and 2022.

What has normalized:

• Lumber and material availability

• Supply chain reliability

• Fewer surprise price swings during construction
  

What has not:

• Labor remains a premium due to skilled workforce shortages

• Energy and operating costs continue to influence pricing

Key takeaway:
This is a more predictable environment, one that rewards early planning and clear scope definition. That predictability strongly favors the design-build model, where decisions are made before construction begins.

Why Remodeling Is Outperforming New Construction (Especially in Pittsburgh)

Pittsburgh’s Housing Reality
Pittsburgh has one of the oldest housing stocks in the country. According to the U.S. Census Bureau, more than 60 percent of housing units in the Pittsburgh metro area were built before 1980, with many dating back well before 1940.

At the same time:

• Buildable land in desirable neighborhoods is limited

• High-income buyers value location, walkability, and character

• New construction infill is slow, complex, and expensive

The result:
Renovation becomes the most viable path to achieving modern living standards without sacrificing location or architectural character.

Financial Logic Favors Remodeling
Economic uncertainty has shifted homeowner priorities away from resale-driven upgrades and toward lifestyle return on investment. Homeowners are asking different questions today:

• Will this improve how we live day to day?

•  Will this reduce long-term operating costs?

• Can this home adapt as our needs change?

This mirrors findings from the National Association of Home Builders and Remodeling Magazine, which consistently show homeowners prioritizing efficiency, durability, and flexibility over short-term resale gains.

Remodeling Trends Being Driven by Today’s Conditions

Phased Remodeling Is Becoming the Norm
Rather than taking on one massive renovation, many homeowners are breaking projects into intentional, manageable phases. This approach allows for:

• Better budget control

• Smarter material timing

• Reduced disruption to daily life

Design-build firms are particularly well suited for this strategy because long-term master planning ensures each phase supports the next without costly rework later.

Energy Efficiency Is No Longer Optional
With utility costs remaining elevated, energy performance has become a central driver of remodeling decisions. According to the U.S. Energy Information Administration, household energy costs are expected to remain high, pushing homeowners to invest in long-term efficiency.

Homeowners are prioritizing:

•  Improved insulation, windows, and doors

•  HVAC modernization

• Systems that lower operating costs over time
  

These upgrades may not always be flashy, but they deliver measurable and lasting value.

Function Over Flash
Today’s homeowners are increasingly resistant to highly trend-driven design. Instead, they are favoring:

• Flexible and multi-use spaces

• Aging-in-place considerations

•  Timeless materials that wear well

The design philosophy has shifted toward a simple truth.

We want it to look good, but we need it to work.

What Homeowners Should Do In 2026

Start Earlier Than You Think
Longer planning timelines are now the norm due to:

• Increased design complexity

• Extended permit approvals

• Ongoing material lead times

Starting early allows homeowners to explore phasing options, model costs realistically, and make confident decisions without pressure.

Work With Teams Who Plan Before They Build
According to the Design-Build Institute of America, projects delivered through integrated design-build experience fewer change orders and greater cost certainty than traditional bid-build projects.
In an uncertain economic environment, clarity beats speed. Homeowners who invest in thoughtful planning upfront are better positioned to control costs, reduce risk, and create homes that truly support how they live well beyond 2026.