Remodeling is not a short-lived niche. New analysis from Harvard’s Joint Center for Housing Studies shows how significantly the U.S. remodeling industry expanded after the Great Recession and through the pandemic. The useful question for a homeowner is not whether to follow a market headline, but how to make lighting decisions that remain valuable after a renovation trend passes.
Harvard researchers report that residential remodeling contractor establishments grew by about one quarter between 2017 and 2022, reaching more than 128,000 payroll-reporting businesses. They also note that property owners spent more than $600 billion on improvements, system replacements, damage repairs and routine maintenance in 2023. Those categories are broader than decorative renovation alone, so the figure should not be described as “lighting spending.” It does, however, show the scale of ongoing investment in existing homes.
The market is large, but near-term growth is cooling
The same research program’s Leading Indicator of Remodeling Activity expects growth in home improvement and repair spending to lose momentum through mid-2027. NAHB’s August 21 mid-year remodeling forecast summary likewise describes weaker near-term economic momentum while pointing to long-run demand from an aging housing stock and aging homeowners.
These findings are not contradictory. A large market can grow more slowly. For households, that argues for prioritization: spend first on decisions that are difficult or expensive to revisit, then phase decorative upgrades where practical.
A durable lighting budget has three layers
Infrastructure
Electrical capacity, wiring, controls, appropriate junction boxes and structural support belong in the renovation scope. These items are easiest to coordinate while walls and ceilings are accessible. Our guide to hidden renovation work for lighting provides a pre-close checklist.
Useful light
Budget for the light people need to cook, read, groom, move safely and relax. A room can have an impressive centerpiece and still perform poorly. Start with the activity plan in Proper Light at the Proper Time, then compare lumens, CCT, color rendering and dimming through our lighting specification guide.
Decorative identity
Once infrastructure and useful layers are resolved, allocate budget to the fixtures that establish character: a dining-room chandelier, a sequence of island pendants or wall lights that frame architecture and artwork. Explore chandeliers, pendant lights and wall lights by role rather than buying every fixture independently.
Where long-term value usually comes from
- Adaptability: separate circuits and compatible dimming allow one room to support several activities.
- Serviceability: accessible components and documented specifications simplify future maintenance.
- Appropriate scale: a fixture selected from verified room and furniture dimensions is less likely to require replacement.
- Visual continuity: repeating a restrained family of finishes and forms can make phased purchasing feel intentional.
- Honest specifications: color temperature alone does not establish brightness or quality; read the full set of relevant metrics.
A simple phasing strategy
- Complete the room, furniture and electrical plans.
- Secure safety-critical support and wiring while construction is open.
- Install essential task and circulation lighting.
- Add the primary decorative fixtures that define the main spaces.
- Finish secondary accent layers as budget and use patterns become clearer.
This approach does not mean buying the cheapest fixture now or the most expensive fixture for “investment.” It means spending in the order that avoids rework and supports how the home will actually be used.
Designers, architects and contractors managing multi-room scopes can use the LuminexHome Trade Program to submit product lists, quantities and project requirements for review.
Continue the planning sequence with seven practical 2026 lighting directions and the professional framework for more certain project procurement.
Update: resilience makes serviceability a design decision
In its June 2026 practice survey, the American Institute of Architects reported that 44% of responding firm leaders said their firms had worked on projects with resilient-design characteristics during the previous five years. Among firms with that experience, multifamily residential clients were cited by 28% and single-family residential clients by 22%. Respondents estimated that resilient projects could represent about 13% of their billings in five years. See the AIA survey and methodology context.
Those percentages do not create a lighting rule. They do reinforce a useful planning question: can the lighting system be understood, maintained and adapted after installation? Record access to drivers, replacement constraints, control behavior during an outage, compatible components and the route for future service. Compare integrated LED and replaceable-light-source options, then use our explanation of L70 and whole-fixture life to avoid turning one laboratory metric into a lifetime promise.
Updated and fact-checked by LuminexHome on August 31, 2026. AIA survey findings are presented as industry context, not as a residential code requirement.
Update: budget for the installed lighting system
The 2026 U.S. Houzz & Home Renovation Trends Study adds useful budget context. Among U.S. Houzz homeowners who renovated in 2025, 37% reported exceeding their planned project spend, 35% finished on budget, 3% finished under budget, and 25% began without a budget. These are whole-project results, not lighting-specific overrun rates, but they show why a fixture allowance alone is not a complete lighting budget.
The same study reports that electricians were hired by 41% of renovating homeowners who used specialty service providers. It also found that planning commonly took longer than construction across project types. For lighting, the practical implication is to price the installed system before ordering decorative fixtures.
| Budget line | What to confirm |
|---|---|
| Fixture and light source | Quantity, lamps or LED components, finish, dimensions, lead time, shipping, and warranty |
| Controls | Compatible dimmers or smart controls, required wiring, commissioning, and manual operation |
| Mounting and support | Junction box, structural support, sloped-ceiling hardware, access equipment, and ceiling repair |
| Installation and closeout | Qualified labor, permits where applicable, aiming or programming, spare parts, labels, and documentation |
Use the smart versus standard lighting guide to decide whether connected control adds enough value to include in the project scope. For professional quotations, quantities, finishes, customization, and delivery planning, submit the project through the LuminexHome Trade Program.
Updated and fact-checked by LuminexHome on September 15, 2026. The Houzz findings are survey context for renovation planning, not a prediction of an individual project’s cost.
Primary sources
- Harvard JCHS, “Bigger Market, More Players,” August 20, 2026
- Harvard JCHS Leading Indicator of Remodeling Activity, July 23, 2026
- NAHB Mid-Year Remodeling Forecast Update, August 21, 2026
Researched and fact-checked by the LuminexHome Editorial Team. Market data is presented for planning context, not as a forecast of an individual project’s cost or return.
