Renovate or Relocate? Weighing the Options
Homeowners should consider remodeling costs versus moving, factoring in home value, equity and lifestyle needs before deciding.
NEW YORK – With mortgage rates above 6%, many homeowners are weighing whether to renovate or move.
While remodeling can offer convenience, experts warn that costs can quickly outpace value, especially when structural issues, outdated systems, or zoning complications come into play.
The average bedroom remodel can reach $60,000, and the average kitchen remodel can cost $25,000. General contractor Jeri Goodkin-Dausey said, "If renovation costs exceed 60% to 70% of your home’s market value — or if major systems like plumbing, electrical, or roofing all need upgrades — it’s often smarter to move."
Renovation also may not be viable if a home is already valued at the top of its market, particularly if property values have reached their peak. Any improvements may be expenses that cannot be offset by a sale.
Experts also advise homeowners establish a clear renovation cap based on the home's resale ceiling and current condition. For homeowners with a low mortgage interest rate and strong equity, a renovation might make more financial sense.
Homeowners should also evaluate their finances and lifestyle needs before deciding whether to relocate or renovate.
Source: Realtor.com (07/29/25) Conte, Allaire
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