3 Home Areas Worth Spending On Even as Costs Keep Climbing
There's always a project around the house that needs to be done, but with the high cost of building materials, homeowners are reconsidering their priorities.
Prices rose 3.7% in April 2026 from a year earlier, which was the fastest annual increase in three years, according to the National Association of Home Builders, citing data from the Producer Price Index. With renovations becoming more expensive, 54% of homeowners are pausing their projects, according to Angi’s 2026 State of Home Spending Pulse Survey, and focusing on essential upgrades.
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When budgets are strained, here are the four areas homeowners should pay attention to and the ones that can be put off, experts say.
1. Don't Delay Anything That Protects Your Home
Many home repairs can be costly, but delaying certain ones could become a bigger headache. Andy Gibbs, founder of RemodX and remodeling expert, explains the simple difference between a repair that can wait and one that should be dealt with immediately.
“It's easy for homeowners to quickly identify what home improvements they should and should not delay: Draw a line on a piece of paper,” he said. “Above the line, write down items to inspect and prioritize.”
Gibbs said that these are the repairs that should not be overlooked.
Does it keep water out? Roof, gutters, drainage and seals.
Does it hold weight? Structural problems, foundation cracks and rotting deck posts.
Does it carry water or current? Plumbing and electrical problems.
2. Water Damage Deserves Extra Attention
Of the problems that can threaten a home, water damage deserves particular attention because it can quickly turn a small repair into a major expense. A leaky pipe or other water issue can cause extensive damage because it can travel fast and hide in places you can’t initially see, like behind walls or under flooring.
“Water intrusion is the only category where a $600 fix reliably becomes a $20,000 one if you wait,” said Cameron Walker, real estate expert and manager of the agent network at Clever Real Estate. “Anything that keeps water out and anything that keeps the house insurable” is something to take care of quickly, he explained.
3. Don't Ignore Your Electrical Panel, Plumbing or HVAC System
Some necessary home upgrades aren't as visible as a new roof but can still cause expensive problems if not addressed.
Walker recommends making the electrical panel and plumbing supply lines the next priority. “An outdated panel or aging pipes will fail an underwriter and scare off a buyer's lender later, and neither problem gets cheaper by sitting,” he said.
Angie Hicks, co-founder of Angi, a leading digital home services marketplace, also cautions homeowners against cutting costs on essential systems.
“Homeowners should avoid cutting corners on anything related to the home’s structure, safety or protection from water, including roofing, foundations, waterproofing, electrical work, plumbing, and HVAC systems,” Hicks said.
Kitchens, Bathrooms and Other Cosmetic Projects Can Wait
Once critical repairs are taken care of, cosmetic projects are generally easier to postpone when funds are limited. According to Walker, updating kitchens, bathrooms and flooring can improve a home's appearance, but delaying them typically won't cause the same chain reaction as ignoring a structural issue or failing system.
Depending on the project, Gibbs adds that painting is something else that can be placed on hold.
“A gallon of paint on a bedroom wall is discretionary -- it's decoration,” he said. “A gallon of exterior wood sealer on a windowsill is long-term protection. Same cost for the gallon of paint -- but applied above that line, not below it.”
If you do decide to renovate, Hicks recommends looking for savings on finishes rather than cutting corners on critical systems or installation.
“A well-installed, midgrade product can perform very well and last for years, while even a premium product may fail prematurely if it is installed incorrectly,” she said.
The Bottom Line: Always Financially Prepare for Home Improvement
Oftentimes, a home improvement project is not as straightforward as it seems and can end up costing more. Angi’s research found that 43% of homeowners who hired a professional went over budget, while one-third of those homeowners spent at least 30% more than anticipated.
“I also recommend building a contingency fund of approximately 10% to 20% into the budget to cover unforeseen expenses,” Hicks said. Planning for surprises before the work begins can help keep a home improvement project from becoming a financial burden.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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