Will Remodel Costs Go Up in 2027? What BLS Data and Market Forecasts Actually Show

The projected increases are modest at every finish level. Here are our current national prices alongside the 2027 projections for the two most common remodel sizes: a 150 square foot kitchen and a 60 square foot bathroom.

A basic kitchen goes up $324. A luxury kitchen goes up $886. On the bathroom side, even a luxury finish only adds $428 to the projected cost. These are not round numbers because they come straight from our pricing engine, not rough estimates.

The dollar increases are larger at higher finish levels, but as a percentage of the total they stay in a tight range. A $324 increase on a $29,959 basic kitchen works out to 1.1%. An $886 increase on a $108,196 luxury kitchen is under one percent of the project total.

Building material costs have been climbing steadily. NAHB analysis of BLS Producer Price Index data found that prices of building materials used in residential construction, excluding energy, were up 3.7% in April 2026 ¹. That was the fastest pace in three years. The index covers lumber, drywall, concrete, tile, fixtures, and other products that go into a remodel.

Materials typically account for close to half of a remodel budget. When the material index rises 3.7%, that increase gets diluted by the labor and fixed cost portions of the project, which move at a different rate. The net effect is what our 2027 projections reflect: total project costs rising between 1.1% and 1.5%, not 3.7%.

The important point for timing decisions is that material prices are not falling. There is no correction in the data. Supply chains have stabilized since the disruptions of 2021 and 2022, but they stabilized at higher price levels, not lower ones. Waiting a year does not position you to buy cheaper cabinets or tile.

Yes. Our pricing engine tracks a national labor cost trend of 2.4% for residential remodeling trades. That figure reflects rising wages for electricians, plumbers, carpenters, tile setters, and other skilled workers who do the hands on work on your kitchen or bathroom.

The skilled labor shortage is the main driver. The construction workforce has not kept pace with demand for years. Fewer young workers enter the trades each year, and experienced workers continue to retire. In that environment, wages go up regardless of whether the overall remodeling market is growing or shrinking.

Labor costs matter more than materials on many remodeling projects because labor cannot be sourced from a cheaper supplier or bought on sale. A plumber in your metro area charges what the local market demands. When there are not enough plumbers, the rate goes up.

The remodeling market overall is flat, not booming. Harvard's Joint Center for Housing Studies projects year over year growth in renovation and repair spending to slow to just 0.5 percent by the second quarter of 2027 ³. Total spending is forecast at about $523 billion in early 2027, according to JCHS data ⁴.

The NAHB Remodeling Market Index came in at 62 for the third quarter of 2026, up one point from the prior quarter ². NAHB projects remodeling activity to remain stable through 2026 and grow slightly in 2027 ². The index has held in a narrow range for several years running, which points to a market that is neither accelerating nor contracting.

What does flat spending mean for you? It means fewer homeowners are starting projects right now, but the cost of each individual project still rises. A slower market does not produce lower prices when the underlying cost inputs, materials and labor, keep climbing. You might find a contractor with a shorter wait list, but you will not find one charging less per hour.

Nothing in the data suggests prices will drop. Material prices are up 3.7% ¹. Labor is trending higher at 2.4%. Spending forecasts show slow growth, not a decline ³. There is no signal that 2027 will be cheaper than 2026.

Here is a practical way to decide. Look at the dollar increase for your project type in the table above. Then ask whether that amount is worth a year of living with a kitchen or bathroom you want to replace.

On a basic kitchen, the projected increase is $324. On a modern kitchen, $537. On a basic bathroom, $197. If any of those numbers feel large to you, remember that they represent the entire projected increase over a full year. Per month, the basic kitchen increase is about $27.

• Wait if you need more time to save, plan, or get permits in order.
• Wait if you are in the middle of another major expense and need breathing room.
• Do not wait expecting a price drop. No forecast supports that.
• Do not wait just because the market is slow. Slow volume does not lower per project costs.

Say you are planning a 150 square foot modern kitchen and a 60 square foot modern bathroom. The current combined price in our engine is $53,361 for the kitchen and $19,246 for the bathroom.

The 2027 projections are $53,898 for the kitchen and $19,508 for the bathroom. The combined increase is $799 across both projects. That is the total projected cost of waiting one year on a kitchen and bathroom remodel at a modern finish level.

On a basic finish, the combined increase drops even further. A basic kitchen goes up $324 and a basic bathroom goes up $197, totaling $521 for both.

These numbers come from our pricing engine and represent national averages. A real quote from a contractor will reflect your specific region, the condition of your space, and the materials you select. But the trend is clear: costs go up modestly and they do not come back down.

1. Building Material Prices Increase at Fastest Pace in Three Years, National Association of Home Builders
2. Remodeling Market Sentiment Remains Stable in Third Quarter Despite Headwinds, National Association of Home Builders
3. Remodeling Spending Slowdown, National Association of the Remodeling Industry
4. Remodeling Growth to Slow Sharply in Early 2027, Pro Remodeler

• Small Kitchen Remodel Cost in 2027: What 70 to 100 Square Feet Really Costs
• What a Master Bathroom Remodel Costs in 2027: Mid Range vs High End
• Kitchen Remodel Cost per Square Foot in 2027: What the Number Really Means