Spending on home renovations slows, but high remodeling costs mean little relief

LOS ANGELES — Homeowners have been spending more on home renovations in recent years, as high interest rates and stubbornly high inflation drove up costs for everything from flooring to refrigerators.

The home improvement spree got particularly heated early in the pandemic, when Americans invested to make their homes better suited for remote work and learning. But the home improvement frenzy appears to be cooling.

Harvard University’s Joint Center for Housing Studies’ latest leading indicator of remodeling activity, or LIRA, suggests homeowner spending on renovations and repairs will fall to $449 billion this year. That would represent a roughly 7%

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Cost of repairs and renovations adds thousands of dollars to homeownership

Monthly mortgage payments aren’t the only recurring cost tied to owning a home. Money spent on maintenance, renovations and repairs, particularly for older houses, can easily cost homeowners thousands of dollars.

The median amount Americans spent on home renovations in 2022 was $22,000, according to home improvement website Houzz. That’s up from $14,000 in 2018. Among the top 10% of homes that spent the most on renovations last year, the median spend was $140,000 or more. 

Experts in residential construction told CBS MoneyWatch that no homeowner can escape home maintenance because appliances eventually break down and weather erodes parts of

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Mortgages and loans to pay for home renovations

Key takeaways

  • There are multiple loan options for people who want to borrow money to improve or renovate their home.

  • Loans that use your home as collateral, including home equity loans and HELOCs, can have tax advantages.

  • Loans that don’t rely on home equity are also an option, but typically have higher interest rates.

  • Some loans even allow you to finance a home purchase and renovation simultaneously.

Whether you’re looking to renovate your kitchen, install a home office or finish your basement, any major home improvement is going to require some major money.

You don’t have to wait until you

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Are home renovations tax deductible in Canada?

Can I claim home renovations on my taxes in Canada?

There is currently a Canada Greener Homes Initiative that provides both grants and loans for home evaluations and retrofits, Joan. 

See the below chart for eligible retrofits. 

Home improvement Amount Good to know
Space and water heating Up to $5,000 If a pump is installed in a home by a licensed professional and is on the eligible product list for ground source heat pumps, air source heat pumps or heat pump water heaters, it may qualify. The pump must be purchased in Canada or from a distributor located in Canada. 
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New Law Gives You $8,000 for Free To Make These 5 Home Renovations

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Are you considering some home renovations for summer? If you approach your next remodeling project with an eye on sustainability, you may be able to reduce your home’s heating and cooling costs while getting money back from the federal government.

The Inflation Reduction Act of 2022 offers more than $8,000 in tax credits or rebates when you make specific energy improvements to your home.


You can save as much as 15% on your home heating and cooling costs with the addition of insulation in attics, floors over crawl spaces and basement rim

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