49% of Remodeling Dollars Come From Households Making $149K+. Here's how to reach them

The best-funded segment of the renovation market is wide open. Are you losing it before the proposal even goes out?

Households earning $149,000 or more account for nearly half of all home improvement spending in the U.S., and that share is growing. HIRI’s 2026 analysis found this group contributed 49% of total improvement spend in 2023–2024, with their financial position improving year over year. While lower-income households delay or cancel projects under financial pressure, higher-income homeowners keep hiring professional contractors. When they do scale back, they adjust scope or materials rather than shelving the project entirely.

The gap between contractors who earn this work and those who lose it comes down to how they sell, communicate, and run the job. Two contractors who have built their businesses around this market break down what that looks like in practice.

Eyal Aharon, CEO of HQ Remodeling & Design in Huntington Beach, California, serves homeowners in single-family homes valued between $1 million and $5 million across Orange County. Whitney Hill, co-founder and CEO of Snap ADU in San Diego, builds detached accessory dwelling units for families and investors, with a client base that skews toward higher-income working professionals. Between them, they cover what wins the first conversation, what the job site needs to look like, and where moving upmarket goes wrong.

Win the first meeting by not trying to close it

The most common mistake contractors make when stepping into this market is pushing for a signed contract in the first sit-down. In lower-budget segments, a high-pressure, same-day close can work. With higher-income clients, it ends the conversation.

“Pressure sales usually don’t work with this customer,” Aharon says. “Sitting with them for five or six hours trying to get them to sign will make them stay away.” He’s seen the same pattern with other tactics that work in lower-budget segments:

• Offering a sudden steep discount looks suspicious to a buyer sophisticated enough to know what a project should cost.
• Withholding information backfires because these clients do their own research and won’t tell you they caught the gap.
• Badmouthing competitors signals insecurity, not confidence.

These clients check license status, verify insurance, read contracts line by line, and compare five to ten bids before signing anything. Aharon’s first meeting is built around understanding what the client wants, walking through past projects that match the scope, and building trust through transparency rather than pressure. The goal is to demonstrate competence, not to walk out with a signature.

Hill sees the same dynamic from the other side. “In the beginning, they actually can be quite exacting,” she says. “They want to really test and make sure we know our stuff.” But once that trust is earned, the dynamic shifts. These clients step back and give the contractor more room to make decisions on their behalf. The vetting is front-loaded and intense, and then the relationship opens up.

Your move: Structure your first meeting around understanding the project and demonstrating relevant experience. Save the proposal for a follow-up.

Lead with design, not price

Reputation and trust get you in the door. Design is what separates you from the other contractors they’re talking to.

For Aharon’s clients, the renovation is almost never driven by an urgent repair. It’s a considered decision they’ve been planning for months, sometimes years, whether that’s refreshing a kitchen, expanding a backyard, or reimagining a living space. They arrive with opinions about materials, layout, and finishings, and they expect the contractor to match that level of intentionality. “Almost all the projects we do start with the design,” Aharon says. “A lot of money goes toward the finishes.”

Hill builds this front-loading into her value proposition. She invests in renderings and detailed project walkthroughs before construction begins, especially for higher-end finishes her team hasn’t photographed before. “A lot of times those are the projects we will go ahead and do a little bit more rendering work so they know exactly what they’re getting,” she says. That upfront investment prevents costly change orders mid-build and gives the client confidence that the finished product will match their expectations.

This approach also justifies a higher price point. Clients in this bracket are often willing to pay a premium for predictability, and front-loading the design and planning work that most contractors defer is what delivers it. Aharon puts it more bluntly: “If I’m the lowest price, usually I made a mistake. I missed something.” Competing on price signals that you’re either cutting corners or miscalculating scope. Neither instills confidence in a buyer evaluating you on capability.

Your move: If you don’t already offer a design phase before construction begins, consider adding one. Even a basic 3D rendering or material mockup can set you apart from contractors who jump straight to the estimate.

Set the service standard before day one

High-income clients expect a level of on-site professionalism that can set you apart from competitors who don’t plan for it. Aharon learned to set those expectations before the first day of work.

His crews cover floors and surfaces with plastic sheeting, remove shoes or wear protective covers, and clean the job site at the end of every day. Every project gets a portable toilet for the workers. “So there will be no friction,” he says. That standard starts with hiring. Aharon stresses that contractors in this market need crews they trust to respect the property. For clients with homes valued at $1 million and up, these details directly affect whether you get the next referral or the next complaint.

Communication is equally critical. Aharon’s clients expect personalized service and frequent updates, often daily during active construction. He sets expectations early about when the project manager will be on site versus when crews are working independently, so the client knows what to expect without feeling ignored.

Hill adds a layer to this: giving clients ownership over the process. She’s building self-guided project portals where clients can track progress, review decisions, and educate themselves on project milestones at their own pace. “A lot of these folks are wanting to do things on their own terms,” she says. The approach reflects how higher-income professionals operate in the rest of their lives: they want visibility and control, not to be managed.

Your move: Before your next project with a high-income client, set clear communication expectations in writing: how often you’ll update them, who their point of contact is, and what the job site protocol looks like for property protection. Small standards, communicated up front, prevent the friction that costs referrals.

Protect yourself as seriously as you protect the project

Serving affluent clients comes with risks contractors may not consider until it’s too late. These clients have resources, and some will use them.

Leave no compliance gaps. “Some of them are lawyers, or they have lawyers on retainer,” Aharon says. “They have the financial means to go to court, and they’re not scared to do it.” Unlike other segments where a dissatisfied client might walk away from a dispute, a high-income homeowner with a grievance has the means and motivation to pursue it. Aharon’s response is to leave no gaps. He pulls permits on every project, ensures his contracts comply with all regulations, and documents the work throughout. Cutting corners that might go unnoticed elsewhere creates real exposure when your client has the resources and knowledge to hold you to it.

Back up every claim. Hill sees the risk from a different angle. “Faking it till you make it doesn’t really work in this space,” she says. “You’re definitely going to need to back up the claims big time.” Flashy marketing or inflated timelines set expectations that this segment will hold you to, and if the delivery doesn’t match, it unravels fast.

Price the project, not the client. Aharon flags one more subtle mistake: pricing based on what you think the client can afford rather than what the project is worth. “You need to show them that you don’t just throw numbers because they have the money to pay,” he says. Overcharging erodes trust just as fast as underdelivering.

Your move: Before taking on higher-end work, audit your contract for compliance with local regulations and confirm that your license, insurance, and bonding are current and visible. Price every project on scope, not on what you think the client can afford.

Start here

This week: Review your contract and confirm it complies with local licensing, permitting, and insurance requirements. If you’ve been skipping permits on any projects, stop. In this segment, that exposure can become a legal liability.

This month: Restructure your first meeting around understanding the project and showing relevant experience. Prepare a walkthrough tailored to the client’s project type and home style, and save the formal proposal for a follow-up.

This quarter: Formalize your on-site standards into a written protocol: property protection, daily cleanup, communication cadence, and crew expectations. Share it with the client before work begins.

The bottom line

High-income homeowners account for nearly half of all remodeling spend, and that share is growing. They hire professional contractors, they invest in design, and they pay for predictability. But they also vet harder, expect more, and have the resources to hold you accountable when standards slip. The contractors who earn this market do it through trust, transparency, and a level of service that matches the quality of the homes they’re working on.

When the project scope is right but the price gives your client pause, Acorn Finance gives them a way to keep cash liquid while funding the full project. They compare personalized loan offers in minutes, you get paid when work starts, and the scope stays intact.