Home Improvement Costs Rise Sharply Through 2025

Data shows a 76.1% increase in median renovation costs between 2015 and 2025 as homeowners stay in place.

Updated on Oct. 25, 2026 in Home Repair

Gouache-painted editorial illustration of a tape measure and carpenter's levels on wooden floorboards, evoking the rising cost of home renovation. — Median home renovation costs in the United States surged 76.1% between 2015 and 2025 as high mortgage rates keep homeowners in place. AI Illustration. Upload story photo >

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Are rising home repair and maintenance costs making it harder for your household to save money?

Home improvement and repair costs increased 76.1% in the United States between 2015 and 2025. Rising expenses for labor and materials are impacting homeowners who are choosing to renovate rather than move.

Why it matters

High mortgage interest rates discourage homeowners from selling their current residences. This trend forces many to invest in existing properties to accommodate changing needs despite rising costs.

The median home improvement project cost reached $2,113 in 2025, up from $1,200 in 2015. While professional projects have a median cost of $4,103, DIY alternatives average $845.

The details

Homeowners are primarily financing these renovations using cash savings, which funded 75.7% of projects. Many are prioritizing essential tasks like replacing water heaters, dishwashers, and garbage disposals.

2015 served as the base year for the home improvement cost study.
Project costs surged by 76.1% during the period spanning 2015 to 2025.
Homes constructed between 2022 and 2023 currently incur lower annual maintenance costs.
2025 represents the final year of the analyzed cost comparison.

Culture Shift

This trend marks a departure from historic mobility patterns where homeowners frequently upgraded by moving to new properties. Instead, high interest rates have locked households into current residences, forcing a shift toward long-term maintenance rather than relocation.

Homeowners should budget for an average of $1,433 in annual routine maintenance costs. Those living in older properties built before 1940 should expect significantly higher costs, averaging $1,706 per year.

The takeaway

Homeowners should prioritize cash savings for renovations to avoid relying on credit cards, which currently fund only 6.3% of projects. Planning for routine maintenance is essential, as newer homes built after 2022 offer significantly lower upkeep costs.