Home renovation costs surge, but there are some cost-saving tricks 

Home renovation costs have surged in 2025, with tariffs and supply chain issues inflating prices. However, homeowners can still achieve stylish upgrades without breaking the bank. Experts from Highland Cabinetry broke down the costliest decision and highlighted practical, data-backed strategies to save money on your next renovation project.  

1. Think Big, Start Small: Prioritize High-Impact Areas

 Homeowners often assume that extensive renovations are necessary to make a significant impact. However, focusing on high-impact areas can yield impressive results without the hefty price tag. 

“Even a minor kitchen remodel, which may include updating countertops, cabinets, and appliances, can cost around $27.4K and recoup approximately 96% of that investment upon resale,” says a spokesperson from Highland Cabinetry. 

In contrast, major upscale kitchen remodels, averaging $158.5K tend to recover only about 38% of the cost. Similarly, bathroom remodels can offer high returns, with minor updates often providing better value than extensive renovations. 

2. DIY Where You Can: Save on Labor Costs

Hiring professionals for every task can quickly escalate costs, but taking on certain projects yourself can lead to substantial savings. For instance, the average cost to paint a room ranges from $400 to $1,600, depending on factors like room size and ceiling height. Opting to paint the room yourself can save you the entire labor cost, which typically makes up a significant portion of the total expenses. 

“Engaging in DIY projects, such as painting or installing hardware, can not only reduce costs but also provide a sense of personal accomplishment. It’s still important to assess your skill level and the complexity of the task to determine if it’s a feasible and cost-effective option.”  

3. Go Domestic to Bypass Tariffs Where You Can

Imported materials are more likely to carry added costs. Tariffs on Canadian softwood lumber may rise from 14.5% to 34.5%, potentially inflating prices significantly. Instead, choose U.S.-made cabinetry, countertops, and flooring to sidestep these added fees. Builders note that domestic options can be cost-competitive once you factor in avoided tariffs and shipping surprises.  

4. Opt for Energy-Efficient Upgrades

Investing in energy-efficient upgrades can significantly reduce long-term costs. Replacing outdated windows with energy-efficient models can lower household energy bills by an average of 13%, according to the U.S. Department of Energy. This improvement not only enhances comfort but also increases home value. 

“Upgrading to energy-efficient features like modern cabinetry, insulation, or windows can substantially cut energy expenses. These investments not only pay off in savings but also contribute to a more sustainable and comfortable living environment.”  

5. Plan Ahead: Avoid Costly Mistakes

Proper planning is crucial to a successful renovation. Homeowners often underestimate the importance of detailed planning, leading to unexpected costs and delays. Recent surveys found that 38% of homeowners underestimated the costs of their DIY projects, leading to budget overruns. Set a clear budget, get multiple quotes, and stick to your plan to avoid unexpected expenses.  

The Bigger Picture: Renovating Smartly Amid Rising Costs 

With rising material costs and tariffs, homeowners face a challenging renovation landscape. However, by making informed choices and focusing on high-value updates, it’s possible to achieve a beautiful home without the heavy financial burden. “Renovation success today is about being resourceful and strategic, not just cutting costs,” says a spokesperson from Highland Cabinetry.