HIRI Summit Reveals Homebuyer Trends and AI's Role in Renovations

The Home Improvement Research Institute (HIRI) held its 2026 Home Improvement Insights Summit in Minneapolis on September 29-30, gathering industry leaders to discuss critical trends shaping the market. The event highlighted significant economic factors, evolving customer behaviors, and the increasing role of artificial intelligence (AI) in home improvement decisions. These discussions signal a pivotal shift in how companies must approach their strategies to remain competitive in a changing landscape.

Economic conditions, particularly inflation, are reshaping the homebuilding and homebuying markets. Danushka Nanayakkara-Skillington from the National Association of Home Builders (NAHB) noted that the median age of first-time homebuyers has risen to 40, a stark increase from 29 in 1981. This demographic shift reflects broader economic pressures that have made homeownership less accessible for younger generations, impacting demand for home improvement products and services.

The Summit also addressed how low mortgage rates and household income levels influence buyer behavior. Insights from HIRI's Dave King, Ralph McLaughlin of OpenBrand, and Michael Zdinak from S&P Global revealed that affordability remains a critical concern for potential buyers. As these economic factors continue to evolve, companies must adapt their offerings to meet the needs of an increasingly cautious consumer base.

The customer journey emerged as a focal point, particularly regarding the influence of AI. Grant Farnsworth of The Farnsworth Group presented data indicating a strong confidence among contractors, with an index score of 8.2 out of 10 regarding their business prospects in the next six months. This optimism suggests that professionals in the home improvement sector are preparing for increased demand, even as economic uncertainties loom.

AI's role in home improvement decisions is gaining traction, with Liza Hausman from Houzz reporting that 22% of homeowners are utilizing AI for renovation projects. Furthermore, households that engage AI for home improvements account for 25% of renovation spending. This trend indicates a significant shift in how consumers approach home projects, compelling companies to integrate AI-driven solutions into their service offerings to capture this growing segment.

Kevin O'Connor, host of "This Old House," emphasized the importance of trust and education in maintaining relevance in the home improvement market. His insights reflect a broader industry trend where brands must prioritize customer education and relationship-building over purely transactional interactions. This approach is likely to resonate with consumers who are increasingly discerning and value transparency in their purchasing decisions.

Looking ahead, the home improvement market is projected to grow by 2.5% in 2026, according to HIRI’s Q3 2026 Size of the Home Improvement Products Market Report. However, this growth is tempered by the anticipated 1.5% contraction when adjusted for inflation. King’s call for manufacturers to reduce uncertainty in the customer decision-making process highlights a critical area for strategic focus. Companies that can simplify the purchasing experience and provide clear, reliable information will likely gain a competitive edge in this evolving market.

As the industry navigates these challenges, the integration of AI and a commitment to customer education will be essential. Firms that proactively adapt to these trends will not only enhance their market position but also foster long-term loyalty among increasingly sophisticated consumers. The next few years will be crucial as businesses recalibrate their strategies to align with these emerging dynamics, ensuring they remain relevant in a rapidly changing environment.