Home improvement costs climbed 76% over a decade
Older houses carry higher upkeep costs, while most renovation work is funded from savings.
The median home-improvement bill reached $2,113 in 2025, a 76% increase from the inflation-adjusted $1,200 figure for 2015, LendingTree found. The sharpest rise came across 2021 to 2023, when the median grew 22.2%. Richmond real estate agent Daniel Yoon attributed the broader increase to pricier supplies, labor shortages and projects expanding after hidden problems are uncovered.
Renovating can still appear more affordable than moving for owners who have mortgages near 3%, since a sale would mean replacing that loan at current rates and purchasing at today’s prices. Routine upkeep averages $1,433 annually across most properties. For houses dating from earlier than 1940, the yearly average rises to $1,706. By contrast, the average was only $173 among residences constructed in 2022 and 2023.
Savings paid for 75.7% of the projects LendingTree examined. Cash-funded jobs had a $1,902 median price, compared with $9,963 when insurance settlements supplied the money and $7,924 when owners used home equity loans.
Why it matters: Owners face larger renovation budgets, while buyers may encounter substantially different upkeep expenses depending on a home’s age.
- Realtor.com News