Renovate or Relocate? Home Improvement Spending Soars

“With affordability at a generational low, the ‘renovate vs. relocate’ debate is tilting heavily toward remodeling,” notes Jon Grishpul, co-CEO of contractor platform GreatBuildz.com. “But new data paints a cautionary tale: while staying put may seem like the safer financial move, renovation is increasingly becoming a high-risk, high-stress endeavor – one riddled with surprise costs, contractor issues and emotional strain.” 

Grishpul cites the Harvard Joint Center for Housing Studies, which states that U.S. renovation expenditures are expected to exceed $510 billion this year, up from $458 billion in 2022. 

“However, homeowners aren’t just spending more – they’re experiencing more regret,” he says, sharing that a recent survey by Houzz revealed that 62% of homeowners exceeded their remodeling budgets and nearly 30% regretted hiring their contractor. 

Another report found that over 50% of respondents reported encountering unexpected costs, often leading to financial strain.  

“Rising professional rates are pushing more homeowners to take matters into their own hands, but many underestimate the skill and planning required for complex jobs,” Grishpul adds. 

“Furthermore, even with good intentions and careful planning, renovating an older home often reveals latent issues, such as asbestos, structural damage or electrical rewiring needs, that aren’t part of the initial estimate.” 

On the other hand, he says that relocation can offer predictability and turnkey functionality, especially for buyers upgrading from outdated or structurally compromised homes. 

“In 2025, the decision to renovate or relocate is no longer just a lifestyle preference – it’s a high-stakes financial strategy,” Grishpul concludes. “While renovation may offer a way to avoid high mortgage rates, the risks of budget blowouts, contractor disputes and emotional burnout are very real.”