That Project You’ve Been Putting Off Might Already Be Funded

That kitchen you’ve been thinking about updating…The bathroom that could really use a refresh…Or the outdoor space you keep saying you’ll get to someday…

You may already have the resources to make it happen.

More homeowners are starting to realize they can use the equity in their home to fund upgrades, instead of pulling from savings. In fact, homeowners are projected to spend over $522 billion on home improvements by the end of 2026, and a large portion of that is coming from equity.

If you’ve owned your home for 10 years or more, there’s a good chance you’ve built up a significant amount.

What is equity, and why does it matter?

Equity is simply the difference between what your home is worth and what you still owe on your mortgage.

Right now, the average homeowner has about $313,000 in equity. That gives many people the flexibility to take on projects they’ve been putting off, while also investing back into their home.

And today, the number one reason homeowners are tapping into that equity is for home improvements.

What are people using equity for?

• Home improvements: 45%

• Paying off or consolidating debt: 16%

• Investing in other properties: 16%

That said, just because the equity is there doesn’t mean every project makes sense.

Which projects are actually worth it?

If you’re going to invest in your home, it’s important to focus on improvements that add value, not just cost money. Even if you’re not planning to sell right away, you want to be thoughtful about where you put your dollars.

This is where having a good strategy matters. Knowing what buyers in our market respond to can make a big difference in how much you recoup later.

“Projects with Highest Return on Investment”

As you’ll see in the graph, there’s a wide range of projects with strong return. Some are larger updates like kitchens and bathrooms, while others are smaller improvements that still make a noticeable impact.

A simple upgrade like a new front door can add value, but it’s not something you typically need to tap into equity for. Larger renovations, like a kitchen remodel, are where using equity can make more sense.

Where to start

Before moving forward with any project, it’s worth having a conversation about what actually makes sense for your home and your goals.

The goal isn’t to do everything, it’s to invest where it counts.

And if you’re considering using your equity, it’s also smart to talk with a financial professional to make sure the numbers still work in your favor.

Whether you’re planning to sell in the next year or simply want to enjoy your home more, the right updates today can position you well for the future.

And in many cases, your equity may be what makes it possible.

What’s one upgrade you’ve been thinking about, and wondering if it’s really worth it?

Reach out and let's discuss how to make your dollars work best for you!