When your home no longer meets your needs or lifestyle, it may be time to make a change. Maybe your family has grown, your job situation has shifted, or you’re just ready for something new.
Whatever the reason, deciding whether to remodel your existing home or move to a new one isn’t always straightforward.
In today’s housing market, both options come with challenges and opportunities. Higher mortgage rates and rising construction costs are just two of the factors that could influence the affordability and desirability of your choice.
Interest rates can affect the costs of either option
Today’s mortgage interest rates still hover considerably higher than the rates enjoyed several years ago. If you locked in a low mortgage rate before 2022, selling your current home might mean giving up that rate for a higher one.
But remodeling – depending on the scope of the changes – can also require that you obtain financing.
So, whether you move or remodel, your decision can be impacted by higher interest rates.
Rising costs of remodeling
Remodeling focuses on transforming the structure and layout of your home. Making these changes isn’t necessarily a money-saving alternative. New tariffs are set to increase the cost of building materials and appliances, according to Yahoo News. Materials like lumber, concrete, gypsum, steel, aluminum, and Chinese-made fixtures and appliances are expected to see – or have already seen – price increases.
The remodeling industry is already feeling the pressure. The National Association of Home Builders reports that sentiment among remodelers dropped in the second quarter of 2025, especially in Western states, where activity is slowing.
Comparing your options
NerdWallet outlines key factors, including money, time, stress, risk, and return on investment, to help homeowners weigh whether to remodel or move. These elements can vary widely depending on your home’s condition, location and how long you plan to stay.
Remodeling considerations
When considering remodeling, take into account the entire scope of the project, including the overall cost, potential delays and disruptions and whether you’ll need to temporarily relocate. Convenience and timing can play just as big a role as the price tag.
- Cost: Renovation costs vary widely by location and project scope. Get estimates from several contractors to compare pricing and timelines.
- Disruption: Ask how long the work will take, what could go wrong, and how your daily life might be impacted. Contact your city or HOA for permit requirements or limitations.
- ROI: Talk to a real estate agent about the potential return on your investment based on similar recent home sales in your area.
Moving considerations
When considering whether to move, NerdWallet recommends examining key factors such as available properties for sale, monthly mortgage payments and the costs of buying and selling.
- Inventory: Check whether homes that meet your criteria are available in the neighborhood you prefer. Focus on elements that are hard to change later, such as layout, lot size, and location.
- Monthly payments: If you’re trading in a low-rate mortgage, relocating may result in a higher monthly payment. On the plus side, moving can offer a fresh start, a more suitable layout, and access to better amenities or schools. Additionally, appreciation in your current home’s value may provide a larger down payment for your next one, which can make a significant positive financial difference.
- Property taxes: Moving to a different area may mean paying more or less in taxes. Do the math to see how that affects your monthly budget.
- Transaction costs: Buying and selling come with fees, including closing costs and commissions. A Realtor® can help you estimate these expenses accurately, advises Nerdwallet.
Your next move depends on your goals and circumstances
There’s no one-size-fits-all answer to the remodel-or-move question. The right choice depends on your finances, lifestyle and long-term goals. Either way, doing your homework – and talking to professionals like Realtors, lenders and contractors – can help you make a confident, informed decision.
Find out more in NerdWallet’s article, entitled “Remodel or Move?” How to Decide, (nerdwallet.com/article/mortgages/remodel-or-move-how-to-decide) and Yahoo Finance’s article entitled, Here’s how U.S. tariffs may affect home prices in 2025 (finance.yahoo.com/news/rsquo-us-tariffs-may-affect-163010047.html).
Jay Kalinski is the broker/owner of RE/MAX Elevate and owner of RE/MAX of Boulder. He is also an experienced Realtor, lawyer and veteran of the U.S. Air Force. He focuses on both residential and commercial real estate, with experience in real estate development and investment.
Jay lives in Boulder and is a zealous advocate for his clients as well as an avid triathlete, runner, reader and supporter
of Veterans’ causes.
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