Madison County KY Home Renovations: Why 2026 Might Be the Year of the Big Remodel

As homeowners across the country reconsider buying or selling in a higher-rate environment, a new trend is emerging, and it’s already making waves here in Berea, Richmond, and Madison County, Kentucky.

Closing the margin gap with Home Depot: Lowe’s president, chairman, and CEO Marvin Ellison speaks at the 2022 Milken Institute Global Conference in Beverly Hills, Calif., on May 2, 2022. (Reuters/David Swanson) · REUTERS / Reuters

According to Lowe’s CEO Marvin Ellison, Americans are sitting on significant home equity, and rather than trading in their sub-4% mortgage rates, many are turning their attention toward renovations instead of relocation. Whether it’s updating a kitchen, adding a garage, or modernizing an older home, the remodeling wave is only expected to grow through 2026.

So what does that mean for our local real estate market? A lot more, actually.

1. Homeowners Are Staying Put, and Fixing What They Don’t Love

With mortgage rates hovering above 6%, many homeowners in Madison County, especially those who locked in historically low rates, aren’t eager to move. But they still want updated spaces.
Think:

  • Modern kitchens
  • Extra bathrooms
  • Added garage space
  • Home offices for hybrid work

Instead of switching homes, many Madison County residents are simply upgrading the one they have.

2. Rising Inventory, Slower Sales = More Time for Home Improvements

Even though active listings are up nationally, homes are sitting on the market longer.
Locally in Berea and Richmond KY, we’re seeing:

  • More inventory than previous years
  • Sellers becoming more strategic
  • Buyers waiting for a sub-6% rate

This “stall” often motivates homeowners to reinvest in their current space until they’re ready to list… or ready to age-in-place.

3. Older Homes Mean More Necessary Upgrades

The average home in the U.S. is 44 years old. In Madison County? Many properties are even older. This naturally drives renovation demand:

  • Baby boomers are upgrading to stay in their homes longer
  • First-time buyers (now averaging age 40) want move-in-ready features
  • Renovations today help boost resale value for tomorrow

4. Builders Are Using Mortgage Incentives, But Renovations Still Win

New construction has slowed, but builders offering below-market interest rates are attracting buyers. In 2025:

  • Existing-home rate average: 6.26%
  • New-home average rate with incentives: 5.27%

Even so, these deals still can’t outweigh the appeal of keeping a sub-4% mortgage. And that’s why renovations remain strong.

5. A Forecasted Remodeling Surge Through 2026

Harvard’s Remodeling Futures Program expects:

  • 2.4% growth in renovation spending early 2026
  • Total remodeling spend to hit $524 billion — an all-time high

From minor repairs to major renovations, Kentucky homeowners are gearing up for a big year.

What This Means for Madison County KY Real Estate

If you own a home in Berea or Richmond KY, this may be the best possible time to invest in improvements, both for comfort and future resale value.

And if you’re thinking of selling in the next 1–3 years, strategic upgrades can put you ahead of the competition.

👉 If you want help deciding which renovations will make the biggest impact in Madison County, Kentucky, message me anytime or visit ToddKY.com for local real estate resources, market updates, and home valuation tools.

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