New research reveals strong appetite for renovations with return on investment despite economic barriers, with energy efficiency in heating and cooling shaping homeowner decisions
INDIANAPOLIS, IN – Jan. 26, 2026 – As 2026 begins, Americans say the home remains a top priority and smart investments are guiding renovation plans. New research from Carrier finds that more than half of U.S. homeowners (55%) are thinking about or interested in upgrading or remodeling their current home this year, signaling continued confidence in home improvement even amid financial uncertainty. Carrier is a part of Carrier Global Corporation (NYSE: CARR), global leader in intelligent climate and energy solutions.
The data shows that return on investment is front and center for homeowners planning projects. Nearly nine in 10 homeowners (89%) say they are likely or highly likely to prioritize upgrades that offer long-term value, with 42% saying improvements which offer a strong return on investment are a top priority. Forty-seven percent say they are likely to prioritize upgrades that deliver long-term value, underscoring a shift toward efficiency, durability and cost savings.
“At a time when homeowners are carefully evaluating where their dollars go, projects that deliver both comfort and long-term savings are rising to the top,” said Brooke Greenwood, Director, Residential Product Management, Carrier. “This research shows that heating, ventilation and air conditioning upgrades, in particular, are gaining attention as homeowners connect energy efficiency with real financial impact.”
Among those planning improvements, heating and cooling systems are firmly on homeowners’ radar. Nearly one in five homeowners (19%) say they are considering installing a new heating, ventilation and air conditioning (HVAC) system in 2026, placing it among the top ten home improvement projects. An HVAC system is designed to provide a comfortable indoor environment by regulating temperature and humidity, circulating air, and improving indoor air quality.
Energy efficiency and return on investment are key drivers behind this interest. One quarter (25%) of homeowners say they would replace their HVAC system due to high energy bills caused by inefficiency. While awareness of potential savings is relatively high, 68% of homeowners know that installing a new HVAC system can reduce energy costs; however, nearly one-third (32%) remain unaware of these benefits.
The research also shows that financial payoff is a powerful motivator: more than eight in 10 homeowners (82%) say they would consider a new HVAC system if it paid for itself through energy savings within five to 10 years.
Despite growing interest in heating, ventilation and air conditioning upgrades, significant knowledge gaps remain. About half of homeowners (49%) say they are aware of financial incentives for updating their HVAC systems; this suggests that just over half of U.S. homeowners may be missing out on rebates, tax credits or other savings opportunities.
Uncertainty extends to the basics of their heating and cooling systems as well. More than one-quarter (26%) of homeowners do not know the age of their current HVAC system, and a slight majority (54%) do not know the average lifespan of an HVAC system, factors that can delay proactive replacement and lead to higher costs over time.
“Homeowners want to make informed decisions, but many don’t realize how old or inefficient their systems may be or what incentives are available to help offset costs,” adds Greenwood. “In 2026, education will be key in helping homeowners maximize comfort, efficiency and value for the years ahead.”
For those who would like to learn more about their HVAC system and potential savings, Carrier’s website (carrier.com/residential) offers information on energy savings, federal tax credits, and rebates.
While interest in home upgrades remains strong, financial pressures are influencing decision-making. For homeowners not considering renovations in 2026, the top barrier is cost, with 42% saying they simply do not have the money to take on projects. Economic uncertainty and inflation concerns are also holding back more than a quarter (27%) of homeowners, highlighting the importance of solutions that balance upfront costs with long-term value.
To learn more about Carrier visit www.carrier.com/residential
About the research © 2025 Carrier HVAC Padilla Spotlight Survey (n = 1,015 U.S. Adults 18+, Homeowners)
About Carrier
Founded by the inventor of modern air conditioning, Carrier is a world leader in high-technology heating, air conditioning and refrigeration systems. Carrier provides sustainable solutions, integrating energy-efficient products, building controls and energy services for residential, commercial, retail, transport and food service customers. Carrier is a part of Carrier Global Corporation, global leader in intelligent climate and energy solutions, committed to creating innovations that bring comfort, safety and sustainability to life. For more information, visit @Carrier on X.
Carrier. For the World We Share.
Contact:
Kelsey Taylor
317-690-7700
Kelsey.taylor@carrier.com