See how remodeling spending is increasing and learn ways to fund yours
Homeowners spent more in May than in previous months and years when remodeling their properties.
Are you looking to join these homeowners by starting to remodel your home? Get a HELOC* for remodels you have planned today.
Remodeling spending in May 2026: What the data shows
May 2026 saw an increase in construction spending driven by remodeling, according to the National Association of Home Builders.
The seasonally adjusted annual rate of private residential construction spending in May 2026 was $930.2 billion. From April to May of 2026, home improvement spending rose 0.9%. May 2026 compared to May of the previous year saw an 8.1% increase.
Popular remodel and renovation projects in 2026
Some popular home remodel and renovation projects in 2026 have been:
- Home maintenance: This refers to the projects that prioritize the care and quality of your home, such as HVAC or gutter service. In 2025, homeowners spent an average of $2,041 on home maintenance projects.
- Interior painting: A smaller home project that many homeowners choose to complete on their own. About 20% of homeowners have planned to take on this project in 2026, with the average cost coming out to around $2,000, though costs can vary based on the space you plan to paint.
- Bathroom remodeling: 14% of surveyed homeowners have planned a 2026 bathroom remodel. Because a professional is typically needed for these projects, homeowners can expect to spend from $6,600 to $17,600, depending on the scope and size of the bathroom remodel.
- New flooring: New floors can improve your home’s look and comfort while potentially adding to your property’s value. Depending on the materials and how big an area you choose to refloor in your home, the total cost can vary. On average, flooring material ranges from $2 to $25 per square-foot.
- Updating appliances: This cost will vary based on which appliances you are choosing to update. There are many home appliances you can update, such as microwaves, dishwashers, stoves, refrigerators, washer and dryers, and HVAC systems.
If you are looking to tackle home projects that increase your property value, make sure you look at the ROI (return on investment) of any planned projects.
Need help funding any planned renovations? Look into a home renovation loan.
Using your home equity to fund your remodel
Remodeling and renovations can end up more costly than you might have expected or planned for. However, homeowners could use home equity to help fund any projects they may have in mind.
Home equity refers to the amount of your home that you own outright. You can determine your home equity by subtracting your remaining mortgage balance from your home’s current value.
Homeowners can access a portion of their home equity to help cover the costs of projects or renovations they may have planned through a loan that taps into their home equity, such as a HELOC.
How to use a HELOC to fund renovations
A HELOC, or home equity line of credit, typically opens a credit line based on the equity you have in your home, similar to a credit card. You can draw on your HELOC as you need funds. While you are drawing on your HELOC, you will only need to pay interest on the amount you accessed. After your draw period ends, you will begin repayment on your HELOC principal and interest.
Home renovation and remodeling projects can come with unexpected costs, making the option for additional draws with a HELOC a great option for these projects.
HELOC alternatives
If you are looking for alternatives to a HELOC for accessing your home equity, you can look into a home equity loan or cash-out refinance.
Both a home equity loan and cash-out refinance offer homeowners a lump-sum amount based on the amount of equity they have in their homes. A cash-out refinance will replace your current mortgage with a larger one, offering you the difference in cash. A home equity loan will give you a lump-sum amount based on your home equity and leave your current mortgage as it is.
With both of these options, you will have to begin repaying your loan amount shortly after receiving your loan.
Begin funding your remodeling projects
If you are looking to begin funding your remodels by tapping into your home equity, start by completing a HELOC application today.
*Rate's HELOC is a fixed-rate open-end product using your home as collateral. Not available in all states. Go to Rate.com/HELOC for information including important property and borrower requirements and restrictions which impact rate and max available loan amount. Subject to approval.
Applicant subject to credit and underwriting approval. Restrictions apply.
Information provided is for educational purposes only. It should not be construed as financial or legal advice or instruction. Rate does not guarantee or assume liability for the accuracy, completeness or timelines of the information. You should conduct additional research before making any mortgage related decisions.
