Home Improvement Projects Cost 76% More Than They Did a Decade Ago

The typical home improvement project costs three-quarters more than it did 10 years ago, according to a new report from Lending Tree.The median cost of a home improvement project rose from $1,200 in 2015 to an inflation-adjusted $2,113 in 2025—a shocking 76% increase.The largest year-over-year jump happened between 2021 and 2023, when costs rose 22.2%.Material costs and labor costs have both skyrocketed in recent years, according to Richmond real estate agent Daniel Yoon, causing a steep overall cost increase. Having renovated two homes of his own, Yoon also points out that most projects are bigger than they appear at the start.“Good tradespeople are booked weeks out, and they price like it. Materials went up after 2020 and never came back down, and tariffs have added to that,” Yoon tells Realtor.com®. “On top of that, a lot of jobs grow once you start. You open a wall in an older house and suddenly you're paying for electrical work and permits you never planned on.”Homebuilders reported that the cost of key homebuilding materials increased 6.7% over last year, according to the National Association of Home Builders Housing Market Index survey for 2026.Plus, a worsening shortage of ...