Home improvement remains a top priority for many owners despite adverse economic conditions, as the high costs of moving force them to stay put and adapt their current living spaces. Instead of buying a "new" house, they fund renovations to boost property livability, performance, and efficiency.
Indeed, a Citizens Bank survey found many Americans choose home renovation over relocation, with nearly three in four (71%) planning to complete a project within the next two years. Two in three (66%) also said they'll make it happen even if they'd need to sacrifice other major purchases.
How Much Do Americans Spend on Home Improvement Projects?
How much Americans spend on home remodel or renovation projects varies depending on the project type, but the average is typically in the thousands.
Per the most recent data from the Home Improvement Research Institute (HIRI), U.S. homeowners spent about $21,000 on average in the past 12 months (2025) across all project types. The median spending on home improvement, on the other hand, hovered around $11,500.
What Are the Most Popular Home Improvement Projects?
Some of the most popular home improvement projects aim to enhance the curb appeal, functionality, and energy efficiency of homes. Here are some specific examples.
Curb Appeal Projects
Curb appeal projects are those that tackle the exterior side of a home easily visible from the street. Nowadays, their primary concern is to enhance a property's attractiveness and provide functional value, as in the case of a new steel entry door.
A new steel door can create an instant visual pop and improve insulation and home security, given its tight weatherstripping and heavy-duty cores. It also yields a high return on investment. The most recent figures from the National Association of Realtors (NAR) show that it has a 100% cost recovery.
Bathroom Renovations
Bathroom renovations, which focus on creating spa-like havens and more accessible spaces, are also popular.
If this is part of your home improvement project plan, consider getting a multi-head shower and radiant floor heating. You can also convert a cramped tub into a more spacious walk-in shower, as noted by www.CMKConstructionInc.com.
Kitchen Renovations
A kitchen renovation is a wise move for many homeowners, considering that, along with the bathroom, it's one of the most commonly utilized rooms or spaces in a home. It doesn't just serve the home's residents; it also often acts as a gathering space for friends, family reunions, and party guests.
Replacing dated kitchen hardware is one of the most cost-effective ways to modernize this room and improve its appearance and functions. Examples of old hardware you should consider ditching include:
- Cabinet knobs
- Exposed hinges
- Ornate pulls
- Builders-grade finishes
If you have a bigger budget, you may also want to change old, scuffed, or damaged countertops. Replace aging and inefficient appliances with better, energy-efficient models, too. Whenever possible and available, invest in appliances that bear the ENERGY STAR label.
Why Do Home Improvement Projects Remain a Priority Despite Economic Headwinds?
From tariffs to surging labor costs and inflation, these are key factors behind home improvement being more expensive. Despite this, homeowners remain set to complete these projects, with their reasons ranging from the high costs of moving to maximizing their locked-in low rate, among others.
High Costs of Moving
Many of today's prospective homebuyers have to deal with significant financial barriers that involve more than just high mortgage rates and soaring home prices. They also have to consider other relocation-related costs, such as:
- Real estate agent commissions
- Closing costs
- Packing services
- Storage fees
- Moving truck rentals
With all those costly expenses of moving, it's easy to see why homeowners decide to stay put and just invest in their current homes.
Rate Lock-In
Many homeowners sit on historically low mortgage rates. If they move to a new house, they're more than likely to lose these favorable terms and spend much more on a new mortgage loan.
Focus on Livability, Functionality, and Value
Rather than buy a "new" house and get stuck with a new loan, many homeowners choose to invest in and expand their equity in their current homes. Because they've decided to live in the same property for many years to come, they're making high-ROI decisions that they can also get to enjoy.
Aging Housing Stock
The National Association of Home Builders (NAHB) says that close to half of the existing housing stock in the U.S. (47%) has been around before 1980. Over one in three (34%) has even been in place by or before 1969.
With homes in the U.S. being old, routine maintenance and improvements have become non-negotiable. Otherwise, they're at risk of severe property damage and depreciation if homeowners were to delay them.
Frequently Asked Questions
Do All Home Improvement Projects Improve Property Values?
No. While many home improvement projects involving curb appeal, energy efficiency, and bathroom/kitchen function and aesthetics can boost property values, others don't. They may even lead to lowered values.
Extreme, personalized changes or additions (e.g., a high-maintenance swimming pool and very bold colors and designs) are some examples.
They may be an "improvement" for the owner, but future buyers may not share the same sentiment. Neither will they automatically translate to dollar-for-dollar added equity.
Do Home Improvement Contractors Require a License?
It depends, so before hiring home improvement, kitchen, or bathroom remodel contractors, check your local and state regulations first. In some municipalities and states, contractors must, under law, carry specific licensure, registration, or certifications based on the work they'll do.
In Seattle or any other Washington city, for instance, construction contractors must have an active license. They must also carry the appropriate insurance and bond. If you're a WA homeowner, use the Washington State Department of Labor and Industries contractor verification tool to help with your search.
Boost Property Livability and Value With Home Improvement Projects
Even with mounting economic headwinds like tariffs, inflation, and rising labor costs, homeowners still choose to invest in home improvement. They know enhancing curb appeal and functionality of kitchens, bathrooms, and living spaces will make their home more livable, useful, aesthetic, and valuable.
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