May 2025

Americans spent an estimated $603 billion on remodeling their homes last year, according to the NAR report.

Their top motivations for remodeling:

• Upgrade the home’s worn-out surface finishes and materials (27%)
• Improve energy efficiency (19%)
• Desire a change (18%)
• Plan to sell their home within the next two years (18%)

Many homeowners are prioritizing large-scale house projects — often taking on two to three at a time. Fifty-four percent used a home equity loan or line of credit, 29% tapped into their savings, and 10% used credit cards, NAR data shows. Could homeowners be at risk of upgrading their home too much?

“You want to keep up with the Joneses, but you don’t want to beat the Joneses” when remodeling your home, says Angie Hicks, cofounder of Angi. You can update your house to the point its value soars above similar neighboring homes. “In thinking of remodeling projects for your house, a real estate agent is going to be a great person to talk to,” Hicks says. “They know what sells.” Plus, they can recommend reputable contractors.

Make a list of your priorities, Hicks advises. Group them into structural (walls, roofs, etc.); mechanical (HVAC, plumbing, electrical, etc.); and dream projects (kitchen or bathroom remodel, new deck, etc.). Then, compare your list to your budget. “Make sure you do the things that have to be done before you do the things that you’d love to have,” Hicks says.