That kitchen you have been thinking about updating.
The bathroom that needs a refresh.
Or the outdoor space you keep putting off.
What if you already have the resources to make those upgrades happen? Many homeowners are starting to realize that they do.
By the end of 2026, homeowners are expected to spend more than $522 billion on home improvements. And many are not dipping into their savings to fund these projects. Instead, they are tapping into their home equity.
If you have owned your home for more than ten years, there is a strong chance you have built enough equity to support renovations. Here is what you need to know before getting started.
What Is Equity? And How Does It Help?
Home equity is the difference between your home’s current value and what you still owe on your mortgage.
According to Cotality, the average homeowner has about $313,000 in equity today. That can be more than enough to take on long planned projects and give your home the updates it needs.
More homeowners are recognizing this opportunity and using their equity to improve their living space.
In fact, research from MeridianLink shows that home improvements are the most common reason people are tapping into their equity today.
Top Motivations for Equity-Based Borrowing:
- Funding home improvements (45%)
- Paying down other debts or consolidating debt (16%)
- Investing in additional properties (16%)
Using your equity in one of these ways could make sense for you as well.
However, the key point to remember is this: just because you can tap into your equity does not mean you should. It also does not mean every project will deliver the value you expect.
What Projects Are Actually Worth It?
If you decide to use your equity for home improvements, focus on upgrades that add real value. The goal is to choose projects that enhance your home and deliver a solid return over time. Even if you are not planning to sell soon, it is important to make decisions that support your long term equity.
A real estate agent can be an invaluable resource as you evaluate your options. They understand current buyer preferences and know which updates are most appealing in your local market. This insight can help you prioritize the projects that make the most sense. As the National Association of Realtors explains:
“Being able to help sellers prioritize home improvements and maximize their net on the sale is a key value real estate agents offer.”
Here is a quick overview of the projects that tend to offer the strongest return, according to NAR (see graph below). While this is a helpful starting point, it cannot replace the local expertise an agent brings to the table.
As you can see, there is a wide range of projects to consider. Some are larger investments, such as kitchen or bathroom updates, while others are smaller improvements that can still deliver strong returns.
For example, a new front door can add value, but it may not be the best use of your equity. A kitchen renovation, on the other hand, is a larger project where using your equity could help make the investment more manageable.
Where To Go from Here
Whether your project is on that list or not, it is a good idea to talk with a real estate agent before moving forward. They can help you determine if the upgrade is worth the time, cost, and effort before you hire any contractors.
The goal is not to do everything. It is to invest in the improvements that truly add value.
If you are considering using your equity for a larger project, it is also smart to consult with a financial advisor. They can help you evaluate how it impacts your loan to value ratio and ensure you maintain a healthy financial position after using your equity.
With the right guidance, you can move forward with confidence and make decisions that support both your home and your long term goals.
Bottom Line
Whether you are planning to sell next year or simply want to improve your home, the right upgrades today can set you up for success in the future. The best part is your equity may already provide the resources to make it happen.
What is one project you have been considering and wondering if it is worth the investment?
Let’s connect for a quick conversation to help you decide if it is the right move for your home and your goals.
