CIFF Shanghai reports that with the widespread adoption of AI-powered intelligent design, home renovation has entered a new era of smart decision-making. New first-tier cities now account for 45.70% of home renovation demand, firmly establishing themselves as the core growth engine of the industry.

Currently, whole-house turnkey renovation holds a dominant 82.40% market share, while traditional partial renovation demand is gradually contracting. Consumers' renovation philosophy has undergone a fundamental shift—they are no longer solely pursuing low-cost renovation, but are willing to pay for premium materials, refined construction, and living comfort. The 80,000 to 120,000 RMB quality upgrade renovation budget range accounts for 48.4% of the market, becoming the mainstream segment; basic budget renovation demand below 80,000 RMB continues to decline, while high-end comfort-oriented renovation demand above 120,000 RMB steadily rises, as home renovation consumption fully advances toward quality-oriented development.

Unit size consumption shows clear structural differentiation. Renovation demand for compact units under 60 square meters continues to rebound, driven primarily by young first-time buyers and existing home renovation needs. In contrast, renovation demand for large units over 160 square meters is gradually cooling, with the growth of luxury home renovation narrowing, as market focus shifts back to mainstream residential unit sizes. Aesthetic trends have also moved beyond blindly following viral styles, with modern minimalist design maintaining its lead through high practicality, while new Chinese style and retro aesthetics are rapidly gaining traction. Home renovation design is transitioning from copying trends to customized design that combines personal expression with cultural sophistication.

The growth center of the home renovation market continues to penetrate downward. New first-tier cities, leveraging sustained population inflows, active second-hand property transactions, and concentrated surges in improvement-oriented owner-occupied demand, have become the industry's primary growth pole. Renovation preferences, functional needs, and consumption philosophies vary significantly across different cities and regions, making traditional unified operation models no longer viable for market adaptation. The industry is gradually moving toward refined, differentiated regional operations.

Material selection standards are undergoing comprehensive upgrades, with texture, environmental protection, and intelligence becoming the three core essentials of modern home renovation. Textured building materials such as soft-gloss tiles, micro-cement, and ultra-thin sintered stone are widely applied, driving home renovation from basic hard decoration toward spatial aesthetic creation. Environmental attributes have shifted from optional advantages to mandatory requirements, with ENF-grade panels, SPC flooring, and diatomaceous mud green building materials achieving comprehensive adoption, while antibacterial and health-oriented wall materials are accelerating deployment. Meanwhile, smart windows and doors, thermostatic showerheads, and age-friendly bathroom products continue to penetrate the market, as home renovation design increasingly balances intelligence, all-age accessibility, and human-centered design.

Digitalization is comprehensively reshaping home renovation industry processes. Currently, over 30% of consumers utilize AI for floor planning and 3D design. AI tools effectively reduce communication costs and improve design efficiency, making renovation decisions more transparent and front-loaded, with digital capabilities becoming the core competitive advantage of home renovation enterprises.

Addressing long-standing industry pain points such as non-standardized construction and financial insecurity, industry standardization continues to improve. Platform fund escrow penetration has reached 93.5%, with financial protection services formally becoming an industry standard, effectively restoring market consumer trust.

Overall, the home renovation industry in 2026 is at a critical juncture of structural transformation, with simultaneous upgrades across the consumption, market, product, and service dimensions. Quality-oriented, intelligent, digital, and differentiated development will continue to drive high-quality growth in the home renovation industry.

Source: yangziwanbao