Your Dream Remodel Might Be Closer Than You Think

The kitchen you’ve been reimagining…

The bathroom that’s due for an update…

The bathroom that’s due for an update…

What if everything you need to make it happen is already in place? More homeowners are starting to realize that.

Homeowners are projected to spend over $522 billion on renovations by the end of 2026—and many aren’t tapping their savings to do it. Instead, they’re leveraging their home equity.

If you’ve owned your home for 10+ years, there’s a good chance you could do the same. Here’s what to know first.

What Is Home Equity—and Why Does It Matter?

Equity is the difference between your home’s value and what you still owe on your mortgage.

According to Cotality, the average homeowner has about $313,000 in equity today—often more than enough to tackle long-overdue projects. And more homeowners are recognizing they can tap into that to invest back into their homes.

In fact, research from MeridianLink shows home improvements are the #1 way people are using their equity right now.

Top Reasons Homeowners Tap Into Their Equity:

• Home improvements (45%)
• Paying down debt or consolidating (16%)
• Investing in additional properties (16%)

It may be worth considering for your situation. But here’s the key—just because you can tap into your equity doesn’t mean you should. And not every project justifies it.

Which Projects Are Worth the Investment?

If you’re considering this approach, focus on upgrades that deliver real value. The best renovations not only improve your living space but also enhance your home’s long-term value—even if selling isn’t on your immediate horizon.

As you weigh your options, a real estate agent can be one of your most valuable resources. They understand what’s working for other homeowners and what buyers in your market are actually looking for—helping you prioritize the right projects. As the National Association of Realtors (NAR) notes:

“Helping sellers prioritize improvements and maximize their return is a key part of an agent’s value.”

Here’s a quick look at the projects most likely to deliver a strong return, according to the National Association of Realtors (see graph below). It’s a helpful starting point—but nothing replaces tailored guidance from a local agent.

As you can see, the range of projects varies widely. Some are larger investments, like kitchens and bathrooms, while others are smaller updates that can still deliver strong returns.

For example, a new front door can boost curb appeal—but it’s not something you’d typically tap equity for. A kitchen renovation, on the other hand, is where using your equity can make a meaningful difference.

Where Do You Go from Here?

Whether your project is on this list or not, it’s smart to connect with an agent first to be sure it’s worth the time, cost, and effort before bringing in contractors.

The goal isn’t to do everything—it’s to invest where it matters most.

And if you’re considering using your equity for a larger project, loop in a financial advisor as well to ensure you stay within a healthy loan-to-value (LTV) range. That way, you can move forward with clarity and confidence.

Bottom Line

Whether you’re planning to sell soon or simply want to improve your space, the right upgrades today can pay off down the road. And your equity could help make it possible.

What’s one project you’ve been considering—and unsure if it’s worth it?

A quick conversation with an agent can help you make the right call for your home.

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