US home projects soared 76% in a decade, but a 3% mortgage still beats moving

For owners reluctant to enter the current housing market and give up their favorable mortgage rates, staying put comes with its own rising expense: home renovations have almost doubled in cost over the last ten years. 

Here's what to know

The typical home improvement project in the U.S. now costs 76% more than it did a decade ago, according to a LendingTree report via Realtor.com. Still, with some current homeowners enjoying pandemic-era interest rates as low as 3%, many have chosen to renovate existing homes rather than move.

Adjusted for inflation, the median home improvement project has increased from $1,200 in 2015 to $2,113 in 2025. The biggest spike came between 2021 and 2023, when costs rose 22.2%, according to the LendingTree report. 

Daniel Yoon, a real estate agent, told Realtor.com that higher labor and supply costs have been pushing renovation prices up.

"Good tradespeople are booked weeks out, and they price like it. Materials went up after 2020 and never came back down, and tariffs have added to that," Yoon said. "On top of that, a lot of jobs grow once you start. You open a wall in an older house and suddenly you're paying for electrical work and permits you never planned on."

Even with those increases, rising home prices and interest rates have led plenty of homeowners to view remodeling as a better financial move than relocating.

"A lot of people are sitting on a rate around 3%," said Yoon. "Selling means giving that up, buying at today's prices and borrowing at today's rates. Next to that, even a big kitchen remodel looks like the cheaper option."

Older homes bring higher maintenance costs

The increase in home renovation costs hasn't only affected current homeowners. Because older homes require more maintenance than newer ones, prospective homeowners have also factored higher repair costs into their decisions. 

"Buyers compare list prices, but that's only part of what a house costs you," Yoon said, per Realtor.com. "Richmond has plenty of pre-1940 homes in neighborhoods like the Fan and Church Hill. They're beautiful, but you're often dealing with old plaster, original wiring, cast iron drains, and drafty windows, and that shows up in your budget every year."

Yoon continued: "A new build comes with a new roof, new HVAC and a builder warranty, so the first decade is usually pretty quiet."

Indeed, LendingTree found that routine maintenance costs averaged about $1,433 a year across most homes, but that figure climbed to $1,706 for homes built before 1940.

Further, LendingTree data showed that homes built in 2022 and 2023 average just $173 a year to maintain. That gap can make a home's sticker price misleading, especially in historic neighborhoods.

Where can I learn more?

As renovation and ownership costs have climbed, many homeowners have been taking a closer look at rebates, efficiency upgrades, and other cost-saving opportunities. 

• Millions of Americans were eligible to access up to $14,000 to renovate through federal Inflation Reduction Act incentives.

• In Oregon, residents claimed heat pump rebates worth $2,000 to replace older systems.

• Across the U.S., insurance rates climbed as climate risks reshape housing costs.

• Extreme weather now has the potential to wreak havoc on home insurance premiums nationwide.

• In Utah, homeowners have seen a fast-growing expense strain household budgets.

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