Renovate or Move? What Homeowners Should Consider in 2027

Estimated Read Time: 5–6 Minutes

Do you still love your home, but wish it had another bedroom, a bigger kitchen or maybe a home office with an actual door?

You're not alone.

As we head into 2027, more homeowners may find themselves asking a simple question: Should we renovate the home we have or start looking for something new?

There's no one-size-fits-all answer. But asking yourself a few questions can make the decision a little easier.

What Would You Change About Your Home?

Start with what makes you think about moving in the first place.

If you love your neighborhood, your commute and your backyard but can't stand your outdated kitchen, renovating could be worth exploring.

Maybe you need more room for a growing family, a better work-from-home setup or a first-floor bedroom that could make the house work better as you get older.

Those are things you may be able to change.

But if your biggest frustrations are the location, school district, commute, lot size or neighborhood, a renovation probably isn't going to solve the problem.

What Would Each Option Cost?

It's easy to look at the cost of renovation and think, Wouldn't it just be easier to move?

Maybe. But the purchase price of your next home isn't the only number to consider.

If you already have a mortgage, take a look at the interest rate and payment you have today. A new mortgage would be based on current market rates, loan programs and your financial qualifications at the time you apply. That means your new rate, and monthly payment could look very different from the mortgage you currently have.

Even if you're considering a home with a similar purchase price, your monthly housing expenses could change because of:

• Your new mortgage interest rate
• The amount you finance and your down payment
• Property taxes on the new home
• Homeowners’ insurance costs
• Mortgage insurance, if applicable
• Homeowners’ association fees, if applicable

You'll also want to consider the upfront costs of moving. Depending on your situation, those could include closing costs, moving expenses, real estate-related costs and money spent getting your current home ready to sell.

Renovating has costs of its own, of course. In addition to labor and materials, larger projects may involve permits, design fees, temporary accommodations and unexpected expenses once work begins.

And if you're financing the renovation, compare that cost carefully too. Using a home equity loan, line of credit, renovation loan or cash-out refinance can affect your monthly expenses differently. For example, refinancing an existing mortgage means replacing it with a new loan at the rates and terms available at that time.

Instead of simply asking, “Which option costs less?”, consider asking:

“What would each choice cost us up front, each month and over the time we expect to stay in the home?”

Looking at the full financial picture can make it easier to decide whether investing in the home you already have, or purchasing a new one, fits better into your plans.

How Much Equity Do I Have in My Current Home?

If you've owned your home for a while, you may have built up more equity than you realize.

Home equity is generally the difference between what your home is worth and what you still owe on loans secured by the property.

Understanding your equity can be useful even if you aren't planning to sell.

Depending on your situation, there may be several ways to finance home improvements, including a home equity loan or line of credit, renovation mortgage or cash-out refinance.

That doesn't mean borrowing against your home is automatically the right choice. Each option has different costs, rates and repayment terms, so it's important to look at the whole picture, including the mortgage you already have.

What If You're Leaning Toward Moving?

If moving is starting to feel like the better option, take some time to see what’s available and what a new home might look like financially.

Housing inventory has improved nationally compared with the extremely limited selection buyers experienced in recent years. But real estate is local, and the number of homes available can vary significantly from one community and price range to another.

A Real Estate Professional can help you understand what your current home may sell for and what’s available in the areas you’re considering. From there, a mortgage professional can help you look at the financing side, including your potential down payment, estimated monthly payment and other costs associated with purchasing a new home.

Having a clearer picture of both the housing market and the numbers can help you decide whether moving really is the right next step.

So…Stay or Go?

If you're still undecided, try asking yourself these questions:

• Do we still love where we live?
• Could renovating realistically solve what's bothering us?
• How long do we expect to stay?
• What would the improvements cost?
• What might our current home sell for?
• What would purchasing another home look like financially?

You don't need to make the decision overnight and you don’t have to have all the answers before you start exploring your options. Whether you’re thinking about renovating the home you love or wondering if it’s time for something new, understanding the numbers can help you decide what makes the most sense for you.

Thinking about making a change in 2027? Reach out today. We can help you explore your financing options and get a clearer picture of what your next move could look like.‍