Australians have an enduring obsession with home ownership. But with the median dwelling price sitting at 16 times median income in some areas, renovating a 'fixer upper' or improving an existing property rather than moving is becoming a more viable option for many.
In fact, as reported by Realestate.com.au in January 2026, Australians spent $53.8 billion on home improvements in FY25, the highest spend since 2022.
So how can investors get in on this trend? Here are the three stocks poised to ride the renovation wave.
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Beacon Lighting Group Ltd (ASX: BLX)
Lighting is an important part of any property overhaul and plays a pivotal role in three of the most popular renovation categories – energy efficiency upgrades, kitchens, and bathrooms. And while local lighting and ceiling fan retailer Beacon Lighting has seen some share price volatility of late, it is well placed to capitalise on its trusted brand and broad product range.
Its share price has fallen around 30% in the last year, likely driven by weakening sentiment across the consumer discretionary retail sector. However, at the tail end of 2025, it hit the radar of some analysts, with Bell Potter putting a buy rating on it in December.
And at current prices, I tend to agree. Its FY25 results show solid growth, including record sales of $328.9 million and a gross margin of 69.1%. Also, Beacon Lighting recently highlighted that it remains on track to reach its target of 50% trade sales by FY28 – a strategy that essentially gives it two bites at the home renovations cherry.
It has shown a disciplined approach thus far, with a healthy cash buffer and a relatively conservative balance sheet. In my opinion, it's a buy for long-term investors in the current climate.
Temple & Webster Group Ltd (ASX: TPW)
Furniture provides the finishing touch of every renovation, and Temple & Webster is in the box seat to deliver. The online retailer offers access to more than 200,000 items from thousands of suppliers through a scalable drop-shipping model. This agile model allows it to serve a wide market, offering everything from simple flat-pack solutions and on-trend, low-cost décor to premium, artisan, hand-finished furniture.
Its share price is down roughly 25% over the last 12 months. Despite posting strong FY25 results, it saw volatility in November following an update that missed consensus growth expectations. That said, the company says it remains on track to deliver on its mid-term goal of $1 billion in annual revenue.
Despite failing to meet expectations in the short term, I think it's worth considering at current prices. Its solid performance in market headwinds, strong brand, flexible model, and depth of product offering all create a solid runway for long-term growth.
GWA Group Ltd (ASX: GWA)
As the owner of some of Australia's most recognised kitchen and bathroom brands, including Caroma, Methven, Dorf, and Clark, GWA is a pivotal player in the home improvement landscape.
While GWA is also affected by changes in consumer discretionary spending, its share price has fared better than many peers'. Over the last 12 months, it has seen a 4% rise in its share price and is tipped to continue delivering strong dividends to investors.
It reported solid results in FY25, despite a declining market. And its buybacks late last year indicate the company has confidence in its ability to continue delivering and believes its shares to be undervalued.
GWA's ongoing success may be buoyed by continued consumer demand for water-efficient products. It is a frontrunner in the space with intelligent bathroom systems that deliver smarter water management solutions to consumers.
At current prices, GWA may still hold reasonable value for investors. It offers some of the go-to brands for consumers looking for quality and water efficiency. And it has shown it can perform and deliver healthy dividends, even in challenging market conditions.
