Home Projects Cost 76% More Than in 2015: What to Budget Now
A new LendingTree report shows the typical project costs far more than a decade ago. Here is what that means for kitchens, roofs, heat pumps and more.
The typical home improvement project now costs about three-quarters more than it did ten years ago, and our live figures show how that plays out on big jobs. Budget for the price of the work and also for the extras that tend to turn up once it starts.
What the report found
According to Realtor.com, which reported on new LendingTree research, the median home improvement project cost $1,200 in 2015. In 2025 it was $2,113 after adjusting for inflation, a 76% increase. The biggest single jump came between 2021 and 2023, when costs rose 22.2%.
The same article reports several other findings:
- Cost pressures: A Richmond real estate agent quoted in the piece blames higher labor and materials costs, with tariffs adding to the squeeze. The National Association of Home Builders survey cited there puts key building materials up 6.7% over the past year. The Home Builders Institute estimates that the shortage of skilled tradespeople costs the country $10.8 billion a year in added costs.
- How people pay: 75.7% of projects were paid for in cash. Credit cards covered 6.3%, homeowners insurance settlements 3.9% and home equity loans 3%.
- Size varies by funding source: The median cash-funded project cost $1,902. The median project funded by an insurance settlement cost $9,963, and by a home equity loan, $7,924.
- Older homes cost more to maintain: Routine upkeep runs roughly $1,433 a year for most homes and $1,706 for homes built before 1940. Houses built in 2022 and 2023 average just $173.
- Savings advice: The agent suggests setting aside 1% to 3% of your home's value each year, toward the higher end for an older house.
That agent also says projects often grow once work begins, and gives the example of opening a wall in an older house and finding electrical work nobody planned for.
What it means for project budgets
The median covers everything from a faucet swap to a new roof, so it says little about your own job. Larger projects are where the pressure hits hardest. We build our figures from labor hours times local rates, plus materials, and check them against market prices and real quotes. These are our current typical costs, before sales tax:
| Project | Typical cost (mid tier) | Range |
|---|---|---|
| Kitchen remodel | $12,000 | $9,350 – $15,600 |
| Bathroom remodel | $13,600 | $10,600 – $17,600 |
| Roof replacement (shingles) | $8,500 | $6,650 – $11,100 |
| Heat pump installation (ducted) | $14,500 | $11,300 – $18,800 |
| Water heater replacement | $1,900 | $1,450 – $2,450 |
| House rewiring | $8,000 | $6,250 – $10,400 |
Our [kitchen remodel cost guide](Kitchen remodel) breaks down how cabinets and countertops move the price. Countertop choice is one of the biggest levers, and
| Material | Typical | Usual range | Lifespan |
|---|---|---|---|
| Laminate worktop | $9,150 | $7,150 – $11,900 | – |
| Solid wood / butcher block | $11,200 | $8,750 – $14,600 | – |
| Sintered stone / porcelain slab | $11,300 | $8,800 – $14,700 | – |
| Solid surface (acrylic) | $11,400 | $8,900 – $14,800 | – |
| Stainless steel | $11,700 | $9,150 – $15,200 | – |
| Granite | $11,900 | $9,250 – $15,500 | – |
| Quartz / engineered stone | $12,000 | $9,350 – $15,600 | – |
| Marble | $12,200 | $9,500 – $15,900 | – |
| Quartzite (natural stone) | $12,800 | $10,000 – $16,600 | – |
lays out the options side by side.
Where older houses bite
The report's point about older homes matches what we see in our models. Wiring is the clearest example. A house with original wiring and plaster walls costs more to rewire than a newer one with standard construction, and our [house rewiring guide](House rewiring) shows the difference. If you are opening walls for a kitchen or bathroom in a pre-1940 house, ask contractors up front how they would handle outdated wiring or drains. Our [bathroom remodel guide](Bathroom remodel) covers what a typical scope includes.
Plumbing, electrical and structural changes usually need a local permit. Permits and surprises uncovered mid-job are the usual reason a final bill exceeds the first quote, so build them into your plan.
Don't count on federal credits
Federal tax credits 25C (energy efficient home improvement) and 25D (residential clean energy) have ended. 25D does not apply to spending after December 31, 2025, and 25C does not apply to property placed in service after that date, according to the IRS. Projects like a [ducted heat pump](Heat pump installation) or [solar panels](Solar panels) now have to stand on their own numbers.
Some help may remain. Some states run home energy rebate programs, and availability varies. Utilities often offer rebates on heat pumps, insulation and EV chargers. The DSIRE database lists state and utility incentives, so check it before you sign.
How to plan around higher costs
- Start the fund early. The report's 1% to 3% rule is a sensible guide. Write down the age of your roof, HVAC system and water heater, and plan around the oldest.
- Get several written quotes. Make sure each one covers the same scope, permits and disposal. Use our "is my quote fair" tool to compare a quote against our live figures.
- Keep a contingency. Older houses in particular can hide extra work behind walls. Set aside part of the budget for it.
- Think about timing. Skilled tradespeople are in demand. Booking early for a [roof replacement](Roof replacement) or a [water heater swap](Water heater replacement) can spare you a rushed, pricier emergency call.
- Use cash for small jobs. Borrowing makes more sense for large, necessary projects with a long useful life. The report's analyst warns that putting your house up as collateral is not a decision to make lightly.
Our figures exclude sales tax. Rules on tax for materials differ by state, and labor is often untaxed but not everywhere, so add your local tax to any budget.
Bottom line
A 76% rise is a median across all kinds of projects, so your own job could land well above or below it. The sensible response is to treat today's prices as the baseline, budget for the unexpected, and check every quote against current numbers. Our cost guides update as our model does.