Home renovations aren’t just about updating your space — they’re an investment in your lifestyle and your property. If you’re ready for a new project, here are some of the top renovation trends for 2025, along with tips on how to plan and pay for it.
Top Renovation Trends
Need inspiration? There are plenty of new ways to spruce up your home this year. Some popular projects for 2025 include:
- Accessory Dwelling Units or ADUs, create a versatile space in your backyard, which can be an excellent way to generate extra income or provide housing for family members.
- Sustainable Upgrades Green improvements are more than just a trend — they’re a smart investment. Consider energy-efficient windows, solar panels, smart thermostats and sustainable materials for floors and countertops.
- Remodeled Bathrooms and Kitchens A sleek, updated kitchen or bathroom can add both comfort and value to your home. Revamp these areas with updated design elements, functionality and energy-efficient appliances.
- Smart Home Technology offers things like voice-activated lighting, security systems and energy-monitoring thermostats.
- Enhanced Outdoor Living Spaces can make a backyard a functional living space and include outdoor kitchens, updated landscaping, fire pits, hot tubs and comfortable seating areas.
The right home improvements will enhance your life, fit your budget and increase your home’s value. Updates that typically get the best return on investment include a minor kitchen or bath remodel, replacing the garage or front door and new siding. Choose improvements that align with your lifestyle and budget and watch your home’s value rise.
The 2024 Cost vs. Value Report shows the average cost for some top remodeling projects and how their ROI typically plays out:
2024 National Averages
| Project | Job Cost | Value | Percentage of Cost Recovered |
| Garage Door Replacement | $4,513 | $8,751 | 194% |
| Steel Door Replacement | $2,355 | $4,430 | 188% |
| Manufactured Stone Veneer Siding | $11,287 | $17,291 | 153% |
| Minor Kitchen Remodel | $27,492 | $26,406 | 96% |
| Bathroom Remodel Mid-Range | $25,251 | $18,613 | 74% |
Using Your Home’s Equity to Finance Renovations
If you plan to use your home’s equity to pay for remodeling, you can choose either a home equity loan or a home equity line of credit (HELOC). A home equity loan offers a lump sum of money, which can be useful if you have a specific budget and plan for your renovation project. A HELOC works more like a credit card, allowing you to borrow and repay funds as needed, up to a predetermined credit limit.
Your home’s equity is calculated by subtracting what you owe on your mortgage and how much your home’s currently worth. Typically, the amount you can borrow is up to 80% of your home’s appraised value. For example, if your home has an appraised value of $550,000 and you owe $250,000 on your mortgage, your home’s equity is $300,000, so you could potentially borrow $190,000.
Using a Cash-Out Refinance Loan
If you want to lower your existing loan rate, consolidate debt or make home improvements, a cash-out refinance may make financial sense. You are applying for a new mortgage, which allows you to access your home's equity by replacing your current mortgage with a larger one. The difference between the two loans is paid to you in cash, which you can use for remodeling.
Using a Personal Loan
If you’re doing smaller projects, personal loans may fit the bill. The loan is unsecured, meaning you won’t need to provide collateral to get it. The term and interest rate are fixed, so you can count on the same monthly payment. And because you pay on the principal monthly, you’re guaranteed to pay the loan off in the timeframe you selected. Rates are usually higher for personal loans than they are for a HELOC or home equity loan.
Using a 0% Promotional Credit Card Offer
Sometimes using a credit card’s introductory APR promotional period to finance home renovation costs can make sense if you’re disciplined in your approach. By budgeting for your project and paying off the balance before the promotional period ends, you’re using your credit card as an interest-free loan. Look for a credit card that fits your lifestyle after you’re done with your project. And remember, be sure to pay off the balance before the end of the promotional period, or you could end up carrying a balance with a high interest rate.
APR = Annual Percentage Rate. All loans subject to approval.