Homeownership is a great way to build wealth, and my business – Regions Home Improvement Financing – helps homeowners protect and grow that investment.
In fact, according to the Home Improvement Research Institute, 85% of homeowners who bought last year have already improved their homes to make them feel even more special.
Having financed more than a million home improvements over the last 20 years in all 50 states, we know how important remodeling is to homeowners and are proud to play our part with the financing that helps bring these projects to life and makes life better for our customers.
U.S. homeowners seem to be expanding the size and scope of their improvement projects, and we certainly expect that trend to continue.
Specifically, for the remainder of 2025, we expect to see an increase in remodeling spend, especially though Q4.
Just as homebuying typically ticks up this time of year, remodels tend to increase, too. Schedules are more open, the days are longer and the better weather means it’s easier to go outdoors while indoor work is underway.
Source: Home Improvement Research Institute
Macroeconomic factors affecting home remodeling
Among the macroeconomic conditions we’re watching:
- Tariffs
Industry sources estimate tariffs could raise building materials costs and increase home construction costs by more than 6%, which will put more pressure on builders.Since appliances, hardware, and plumbing fixtures rely heavily on Chinese imports, kitchen and bath categories will likely be impacted the most. Already price-sensitive consumers show little willingness to absorb further price increases.
- Interest rates
Markets are currently pricing in low probabilities of Fed rate cuts in June or July. This will impact moving-related home improvements since mortgage rates could remain in the 6.5-7% range.
- Mortgage demand
Despite slight drops in rates, mortgage demand continues to fall.
- The construction labor market
The construction labor market remains stable, with the May and June employment data from the U.S. Bureau of Labor Statistics in line with the 3% increase in construction the Association of Builders and Contractors had forecast for 2025.
Preparing for a home remodel
For those considering a home improvement project this summer or fall — remodeling a kitchen, converting an unfinished basement to a recreation center, installing a pool, or something else — remember: Always take the time to prepare before a major home remodel.
Jessica Turner, founder of the The Mom Creative, has some tips to make informed decisions during remodeling and reduce the emotional and financial stress these projects can bring.
Learn more about the home finance options Regions offers, and visit our Regions Next Step® Homeownership Resource Center for articles, calculators, courses and other free resources to plot the next step in your home improvement project.
Happy remodeling!