5 Home Improvements To Make Now Before Prices Rise in 2025

Spending on home renovations has surged in the last four years, with median spend soaring 60% between 2020 and 2023, according to the 2024 Houzz & Home Study. This increase is partly fueled by inflation, a frozen housing market, and the soaring costs of building supplies — factors that are all likely to continue into 2025. 

Rising prices have caused more than a few homeowners sticker shock. According to the Houzz study, nearly 40% of homeowners who made a renovation budget struggled to stick to it in 2023. To avoid an unexpected bill, try to make these home improvements this fall before prices go up again.

According to The Freedonia Group, demand for flooring is expected to rise 2.5% per year through 2027, meaning installation costs are likely to keep going up. Despite this forecast, lumber is currently priced at the lowest it’s been since the pandemic, according to Fortune — a discount that is unlikely to last once interest rates cool. This makes now the ideal time to consider replacing those scuffed-up floors.

Many homeowners have been reluctant to sell in fear of swapping their near-zero mortgage rate with a much higher rate. However, with experts predicting rate cuts in 2025, now could be a good time to invest in renovations most likely to increase the home value. According to JLC’s 2024 Cost vs. Value Report, replacing the garage door is a low-cost renovation, costing an average $4,513 on average, that can significantly increase the value of your home. 

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Replacing vinyl siding with manufactured stone veneer is not a small undertaking — and it comes in at an average cost of $11,287 — but it can do a lot to increase a home’s value, recouping its cost 157%, according to the JLC report. Plus, it provides the same look at natural stone, but at a fraction of the cost.

According to the National Association of Realtors (NAR), 97% of realtors cite curb appeal as crucial for attracting potential home buyers. Investing in outdoor landscaping projects not only improves a home’s value — NAR says even simple lawn care service results in a 217% cost recovery — but it also increases joy for homeowners. Homeowners can also save on labor costs by installing outdoor features themselves. Plus, with demand for landscaping products forecast to increase 3.5% annually through 2028, the sooner homeowners start renovating their outdoor space, the better. 

According to utility dive, the rise in U.S. electricity prices outpaced inflation in 2023, and experts see no sign of that trend reversing. And thanks to the Energy Efficient Home Improvement Credit, homeowners who invest in energy-efficient appliances will not only see a reduction in their monthly energy bill, but their tax bill as well.

Between the tax credit and utility savings, some homeowners can recoup the full value of their investment in an energy-efficient appliance within the first year. Rocket Loans reported biomass stoves and boilers, for example, cost an average of $3,000, and can earn a tax credit of $900 and $1,030 on average in annual utility savings, meaning in two years, homeowners will earn money back on their investment.