That kitchen you’ve been mentally redesigning, the dated bathroom, or the “someday” patio project—what if the funding for them is already sitting right under your feet?
By the end of 2026, homeowners are projected to spend over $522 billion on home improvements. But here’s the secret: they aren’t draining their savings accounts to do it. Instead, they’re tapping into their home equity.
If you’ve owned your home for 10+ years, you might be sitting on a goldmine. Here is how to turn that value into your next renovation.
According to CoreLogic (formerly Cotality), the average homeowner now holds about $313,000 in equity. That is more than enough to knock a few major projects off your wishlist. In fact, research from MeridianLink shows that home improvement is now the #1 reason people borrow against their homes.
Why Homeowners are Tapping Into Equity:
45%: Funding home improvements
16%: Debt consolidation
16%: Investing in other properties
Which Projects Are Actually Worth It?
Just because you can use your equity doesn’t mean every project is a smart financial move. The goal is to invest in upgrades that offer a high Return on Investment (ROI) and increase your home’s resale value.
As the National Association of Realtors (NAR) puts it:
“Being able to help sellers prioritize home improvements and maximize their net on the sale is a key value real estate agents offer.”
While big-ticket items like kitchen remodels or primary suite upgrades are great uses for equity, smaller tasks—like replacing a front door—are usually better handled with cash. You want to use your equity for the “heavy lifters” that transform the home’s value.
Your Roadmap to a Smarter Remodel
Before you swing a sledgehammer or call a contractor, take these two steps to ensure you’re making a sound investment:
Consult a Real Estate Agent: We know exactly what buyers in our local market are looking for. We can help you prioritize projects that will actually “pay you back” when it’s time to sell.
Talk to a financial advisor: It’s important to maintain a healthy Loan-to-Value (LTV) ratio. You want to improve your home without over-leveraging your biggest asset.
Whether you’re planning to sell in 2027 or you just want to enjoy your space more today, the right improvements set you up for future success. Your home equity could be the key to making those dreams a reality.
What is the one upgrade you’ve been dreaming about? Let’s have a quick conversation to see if it’s the right move for your home and your future.