Thinking about tackling a home renovation in 2026? Not only can an upgrade significantly boost your home’s market value if you decide to sell, but even if you’re staying put, you’ll get to enjoy improved functionality, comfort, and aesthetics every day. Whether you’re planning a full-scale remodel or a few small upgrades, it’s essential to stay informed about the construction industry’s latest trends, costs, and regulations.
Discussing potential home renovations with your local expert REALTOR® will arm you with the necessary knowledge to navigate your project, especially if your goal with this home upgrade is to increase the property’s value. They can provide valuable insights and strategies, and even connect you with contractors or other renovation specialists to help guide you.
Having a full understanding of the current landscape can make all the difference in your project’s success. In this post, we’ll break down what you need to know before swinging the first hammer.
How Much Do Renovation Materials Cost?
According to the U.S. Bureau of Labor Statistics and FRED Economic data, the cost of construction materials has increased by about 14.1% in March 2026 compared to March 2025. As seen in the graph below, when the pandemic hit in 2020, the cost of materials increased at lightning speed and continued to grow over 2021, with prices beginning to dip in late 2021. However, by March 2022, prices reached their highest point in the last decade before coming down again towards the end of the year. The cost rose only slightly between 2023 and 2024, and continued a slow and steady increase in early 2025.
By winter 2025, costs for building materials had skyrocketed and have continued to increase. In March 2026, costs are climbing to decade-high levels, nearly reaching the peak seen in March 2022. The significant spike is largely due to rising tariffs, in addition to inflation and other global factors.
How Tariffs Have Impacted Home Renovation Material Costs
According to the National Association of Home Builders (NAHB), an estimated $80 billion worth of goods were used for construction in single-family and multi-family homes in 2025. Approximately 7% of those goods were imported from a foreign nation, meaning $5.6 billions of goods came from outside the United States.
An article from the NAHB has said that the rising tariffs have affected affordability for buyers looking at new construction homes. As depicted in the breakdown below, each new construction home will have an additional $10,900 in tariffs on average.
What You Can Do Before You Renovate
While the industry is facing the ongoing challenges of delays and rising costs, there are some steps you can take to alleviate the level of stress:
How to Be Prepared for Your Home Renovation Project
With increased prices, it can take some additional planning, budget-wise, to ensure your project stays on track. Whether you’re adding a deck, renovating your bathroom, completing a DIY project, or working with a contractor, make sure you fully understand the cost of materials, services, and other fixtures. Having your budget ready before you start the process will give you a good idea of what you can afford. And of course, don’t forget your permits!
- Plan Your Budget. With the continuously rising costs of materials, be sure to carefully budget your project. Do your due diligence and research the required materials, hours of labor, and additional expenses needed to complete your renovation. Additionally, as mentioned above, staying up to date on the current cost of materials will help you budget and determine what you can afford.
- Remember Your Permits. Before you begin any project, it’s vastly important to obtain the required permits that comply with building codes and safety standards. If you skip this step, you risk not only facing costly fines but also potentially even more delays, as well as difficulties if you eventually list the home on the market.
- Research Professionals. If you plan to work with a contractor or another home renovation professional, do your homework and thoroughly research reputable potential candidates. Of course, talking with your trusted real estate agent can provide you with valuable assistance in finding the right person or company for the job.
- Plan for Potential Delays. As mentioned above, the industry is continuing to see an increase in delays in completing renovations. Prepare yourself for this very possible occurrence and factor in additional time to avoid disappointment or hasty decisions.
You Can Even DIY Your Home Upgrades!
If you find yourself with additional time on your hands, a great way to save money and avoid the stress of undergoing a full upgrade is to DIY your project! Once you learn how to bring your idea to life and collect your materials, you are the master of your domain.
- Painting a room may take a day or two, but it is a relatively easy and inexpensive process. Choose your color, grab some brushes, and go to town!
Want a change from solid paint? Install your own beadboard, stick on some peel-and-stick wallpaper, or add character to any room with faux brick paneling. These easy and low-cost changes can give an out-of-the-box and modern look to your room.- Spruce up your windows! It’s amazing what some new window treatments can do for a room! Opt for bright curtains or blinds if the room allows – letting more light in overall can give the room a freshened look.
- New lights and ceiling fans can bring new life to your space. By simply switching out these fixtures, your room will have an updated feel overall.
It’s important to be patient and prepared during these unique times. As we move from spring to summer, high costs and limited material availability may continue to be a reality. However, by planning ahead and having a well-defined budget, you can be ready for any home project that comes your way. Planning carefully, communicating effectively with contractors and suppliers, and being flexible in decision-making can help you confidently take on your home project and embrace the exciting home improvements ahead!
The post What to Know About Home Renovations in 2026 first appeared on Lamacchia Realty.