What Americans Are Planning To Spend on Home Renovations in 2025 — Is It Too Much?
Written by
Adam Palasciano
Edited by
Jenna Klaverweiden
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The COVID-19 pandemic ushered in widespread lockdowns across the country. All of a sudden, many people were spending more time in their homes than ever before. In fact, according to the U.S. Census Bureau, the number of people primarily working from home tripled between 2019 and 2021.
The result? A wave of increased home renovations in an effort to make spaces more functional and comfortable.
Today, the cost of home renovations is steadily on the rise. Clever Real Estate indicated that despite higher construction costs, it’s estimated that homeowners will spend $485 billion on renovations in 2024, up from $363 billion in 2020. This represents a 33.6% increase in spending over just four years.
With home renovation spending on the rise, more Americans are choosing to stay put rather than move. Read on to learn more about why Americans are choosing to renovate their homes and how much they plan on spending doing so in 2025.
Also see the most common home renovations and whether they help or hurt a home’s value.
More American Homeowners Are Renovating Rather Than Moving
High home prices and stubbornly high interest rates mean that many homeowners are reluctant or unable to move in the current housing market. As a result, homeowners are focusing more time and resources on home renovations in their existing homes instead.
It’s reported that 63% of homeowners would prefer to remodel their home rather than move to one that has already been renovated, according to a recent Clever Real Estate poll of 1,000 homeowners.
Here are some important statistics to note about why homeowners are choosing to renovate their homes.
- 35% renovate to repair damage
- 35% renovate to increase comfort
- 32% renovate to improve the livability of their home
- 32% renovate to enhance their home’s aesthetic appeal
- 31% renovate to personalize their home
- 30% renovate to increase their home’s value
- 27% renovate to make the home safer
- 26% renovate to make the home more energy-efficient
- 26% renovate to make the home less outdated
- 20% renovate to add more space
- 18% renovate to address structural changes
- 13% renovate to prepare to sell
So just how much are homeowners expected to spend on home renovations in 2025 — and is it too much?
2025 Home Renovations Will Come With a Hefty Price Tag
The home renovation trend characterized by massive spending on renovations is likely to continue in 2025. A total of 53% of homeowners say they plan to spend $5,000 or more next year on home renovations, while 40% plan to spend $10,000 or more.
To determine whether or not you’re spending too much on home renovations, ask yourself the following questions.
- Do I have enough discretionary income to comfortably afford renovations?
- Will I still have a sufficient cash emergency fund after paying for renovations?
- Will I continue to live in my home for many more years?
- Will renovations increase my comfort and quality of life?
If you answered yes to these questions, then renovating your home might be a great idea. However, if you’re going to land yourself in debt to pay for renovations or deplete your savings — or if you’re going to move soon — it might be worth reconsidering any sort of home renovations for the time being.
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