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For many homeowners, keeping a 3% mortgage and renovating is financially preferable to moving, but it is not an automatic rule. LendingTree calculates that the inflation-adjusted median U.S. home-improvement project cost rose from $1,200 in 2015 to $2,113 in 2025, a 76.1% increase. At the same time, the National Association of Home Builders says 30-year fixed mortgage rates averaged about 6.7% in 2024. Giving up a 3% loan can therefore raise the cost of every dollar borrowed for a replacement home, on top of closing, moving and repair expenses. The right choice depends on whether the work solves a required housing problem, how much the renovation will cost, and what a move would cost your household at current rates.
How much have home-renovation costs increased since 2015?
The 76% figure describes the inflation-adjusted median cost of an individual improvement project, not the value of homes or total national remodeling spending. LendingTree’s analysis of American Housing Survey data, adjusted with Bureau of Labor Statistics inflation data, puts the median at $1,200 in 2015 and $2,113 in 2025.
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| Measure | 2015 | 2025 | Change |
|---|---|---|---|
| Inflation-adjusted median project cost | $1,200 | $2,113 | 76.1% increase |
The sharpest increase occurred from 2021 to 2023, when the median project cost climbed 22.2%. The figures combine small and large jobs, so they should not be treated as a quote for a kitchen, roof or heating system. Routine maintenance averaged $1,433 per year across owner-occupied homes; homes built before 1940 averaged $1,706.
What are homeowners doing instead of moving?
Improvements are widespread rather than limited to discretionary remodels. During the survey’s two-year window, 51.6 million of 86.9 million owner-occupied homes completed improvements. Those households reported 139.9 million projects, or 2.7 projects per improved home.
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| Tracked project category | Share of projects |
|---|---|
| Water-heater, dishwasher or garbage-disposal additions or replacements | 11.7% |
| HVAC installation or replacement | 9.1% |
| Flooring, carpeting, paneling or ceiling tiles | 7.8% |
| Plumbing fixtures | 7.1% |
| Roofing | 5.9% |
| Windows or doors | 5.6% |
| Bathroom remodeling | 5.3% |
| Landscaping or sprinkler systems | 5.0% |
| Security systems | 5.0% |
| Electrical wiring, fuse boxes or breaker switches | 4.7% |
Maintenance or repair motivated 76% of homeowners who completed projects in 2025, according to the Home Improvement Research Institute. Among work planned for 2026, interior projects represented 50%, yard, garden and outdoor work 48%, exterior-envelope work 45%, and mechanical, structural or systems work 22%.
How large is the home-improvement market?
The cost increase in individual projects sits within a very large market. The Joint Center for Housing Studies of Harvard University (JCHS) reports $405 billion in homeowner improvement expenditures in 2023. Replacement work—exteriors, systems, equipment and interior replacements—accounted for about half of that spending. Kitchen and bath remodels plus room additions represented about 30%, and outside-property work about 15%.
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Why does a 3% mortgage change the decision to move?
A low existing rate creates an opportunity cost: selling usually means replacing inexpensive debt with a much more expensive loan. NAHB reports that 30-year fixed mortgage rates averaged about 6.7% in 2024 and that roughly 320,000 fewer homeowners relocated in 2024 than the year before. Its analysis identifies owners with sub-3% mortgages as a major reason for the reduced mobility.
The evidence is consistent with a remodeling substitute for many households, not a universal financial guarantee. In a Redfin Ipsos survey of 4,000 U.S. residents conducted in November 2025, 65% of recent renovators said they remodeled instead of moving. Among homeowners planning renovations, 71% said they were remodeling instead of buying another home. Redfin also cites about 80% of mortgaged homeowners as having rates below current market levels.
As NAHB puts it, “Rates on 30-year fixed mortgages in 2024 averaged about 6.7%.” The comparison is between the full cost of retaining and improving the current home and the full cost of buying another one—not between a renovation invoice and a new home’s list price.
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How should you compare renovating with moving?
Use a side-by-side household calculation. A 3% loan is valuable, but renovation borrowing, construction risk and an unsuitable floor plan can erase the advantage.
- Separate necessary work from preferences. Put roof, HVAC, plumbing, electrical, windows and other safety or weather-protection work in a required category. Put finishes, a larger kitchen, a bathroom redesign or an addition in an optional category.
- Define the renovation scope. Obtain itemized estimates, identify permits and include a contingency for concealed damage and changes. LendingTree reports median professional-led project spending of $4,103 versus $845 for DIY projects; those are medians across projects, not a budget for a specific job.
- Price the replacement home at today’s terms. Include the new mortgage payment at the available rate, purchase closing costs, property taxes, insurance, moving expenses and immediate repairs. Also account for the equity and selling costs tied to the current home.
- Account for financing risk. Renovation loans, home-equity borrowing and credit balances all carry interest or fees. A project that looks cheaper when paid in cash can become more expensive when financed or delayed.
- Check whether the home can meet the long-term need. If the lot, neighborhood, accessibility or basic structure cannot support the required change, preserving the mortgage may not solve the household’s problem.
- Use qualified specialists for technical work. Compare licensed bids for electrical, structural, plumbing, roofing and HVAC jobs. JCHS’s 84.1% professional-installation share reflects how often homeowners rely on contractors for work that carries code, safety or warranty consequences.
| Renovate calculation | Move calculation |
|---|---|
| Construction and materials, permits, design, financing interest, contingency and temporary housing if needed | New mortgage at the current rate, purchase closing costs, taxes, insurance, selling costs, moving and immediate repairs |
Which projects are most likely to replace a move?
Projects that restore basic function or add modest usable space are the clearest substitutes. Replacing a failed HVAC system, roof, windows, plumbing components or electrical equipment can keep an otherwise suitable home habitable. Interior reconfiguration, a bathroom update or improved storage may address a household’s needs without the transaction costs of moving.
Large additions and major structural changes require more caution. They can involve design, permitting, temporary relocation and cost overruns, and they may still leave the home with a layout or location the household no longer wants. A low mortgage rate should be treated as one input in that decision, not as a reason to spend without a defined scope.
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What does the latest spending outlook mean for homeowners?
The long-run increase in project costs does not mean prices will rise at the same pace every year. JCHS’s October 2026 Leading Indicator of Remodeling Activity release says annual home-improvement and repair spending is expected to remain relatively flat through late 2027. Its summary, “Remodeling spending continues to stagnate,” describes a leveling market after the earlier surge.
That outlook can make timing and bids important, but it does not remove household-specific risks. A necessary repair may become more expensive if postponed, while an optional upgrade can be phased or delayed until cash flow and financing are favorable.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What is the practical verdict?
For an owner with a 3% mortgage, renovating often deserves priority when the current home is in the right location and required work can be completed within a controlled budget. Moving becomes more compelling when the renovation cannot solve the underlying space, structural or lifestyle problem, or when its all-in cost approaches the cost of buying a better-fitting home even after accounting for the cheap existing loan. No published source establishes a universal dollar break-even point, so the decision must be made from the two complete household budgets.
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Frequently Asked Questions
Does a 76% increase mean every renovation now costs 76% more?
No. The figure is an inflation-adjusted median across all tracked projects in 2015 and 2025. Individual prices vary by trade, materials, region, project size and whether the work is professional or DIY.
Can renovation spending increase my home’s value by the same amount?
There is no guaranteed one-for-one return. The 76% statistic measures what owners spent on projects; it does not measure resale value, appraisal gains or equity created by a particular improvement.
What should I do if a repair reveals additional damage?
Pause the optional portion of the project, document the condition and obtain a revised scope from an appropriately licensed professional. Compare the added cost with a safe temporary repair, a phased plan or the cost of selling before authorizing work.
How can I make a moving comparison when my future mortgage rate is unknown?
Use a range of plausible rates and include the same taxes, insurance, closing and moving costs in each scenario. Recalculate when you have a locked rate or a lender’s formal estimate rather than relying on a headline rate.
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