2026 Renovation Trends: Which Ones Help (or Hurt) Your Home Value?

Whether you’re refreshing a kitchen or finally finishing the basement, renovation budgets can feel like a moving target. Statistics Canada’s Residential Renovation Price Index (RRPI) shows residential renovation costs rose 0.9% in Q2 2025 (after a 0.3% increase in Q1 2025

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) — and the pace of change can vary by region.

That’s one reason many homeowners are leaning into smaller, high-impact updates and efficiency upgrades — projects that can improve day-to-day comfort now and still support resale value later.

While homeowners should put livability and functionality first when considering renovation projects, return on investment is an important factor to consider, Cameron Forbes of RE/MAX Realtron Realty Inc. in Markham, Ont., said via email.

“People should dream, plan and implement home renovations that will make their life easier and even more enjoyable. ROI is a good secondary consideration to ensure that the people live within their budgets,” he said.

Considering a renovation in 2026? Here are some home improvement trends that might help you update and personalize your space while also boosting resale value — and a few that might not.

With budgets still tight for many households — and renovation costs continuing to change — some homeowners are prioritizing smaller projects over major renovations. Instead, they’re favouring cosmetic renovation work, such as painting and general maintenance, Forbes said.

“Painting and general maintenance work will always be a priority for homeowners. Regular maintenance must occur to preserve their home for the long term,” Forbes said.

Small, visible fixes can also help at resale because they signal that a home has been cared for — even when the upgrades aren’t flashy.

New homebuyers surveyed by the Canadian Home Builders Association (CHBA) in 2024 ranked sustainability high on their lists, with high-efficiency windows, energy efficient appliances, HRV/ERV air exchange systems and an overall energy-efficient home all among the top 10 most desired features.

Energy efficiency has consistently been among the top must-have home features over the last nine years, the CHBA told NerdWallet via email.

Incentives that provide access to low-cost financing — like municipal or utility financing programs including the City of Toronto’s Home Energy Loan Program — have helped support some of these types of retrofit projects, said Brendan Charters, development manager at Eurodale Design + Build in Toronto, in an email.

Projects that qualify for these financing assistance programs include insulation, air sealing and renewable energy upgrades, such as rooftop solar panels.

Depending on where you live, examples can include:

“Future proofing against rising utility costs — and carbon taxes depending on the government of the day — as well as ensuring the homes are both comfortable, as well as healthy for the occupants, are big drivers of these changes,” he added.

Electrification upgrades — like heat pumps and heat pump water heaters — can also improve comfort and efficiency, though they may require an electrical panel upgrade first.

Taking care of yourself and the planet also delivers decent ROI; according to the Appraisal Institute of Canada (AIC), energy-efficient renovations have one of the highest paybacks relative to investment, because of the reduced operating costs they deliver over time.

Some of the most practical renovations aren’t the most glamorous — but they can make a home more comfortable and reduce risk, especially during extreme weather events.

Flood protection

Flood- and sewer-backup protection is one place homeowners often start. Depending on your home and local conditions, common upgrades can include:

In some cities, subsidies can reduce the out-of-pocket cost. For example:

Indoor air quality

Indoor-air quality (IAQ) resilience is another upgrade area that’s become more top-of-mind. Health Canada recommends steps to prepare for wildfire smoke, including:

These projects may not “wow” buyers the way a kitchen does, but they can reduce future headaches — which can matter during inspections and negotiations.

Charters has seen increased interest from homeowners who want to turn basements into gyms, home offices, secondary suites and family recreation spaces, such as golf simulators or movie theatres.

“In many cases, making these once-forgotten and discounted areas of the home can increase the livable floor area for the occupants between 50 to 100% more. Improvements in waterproofing, flood protection and in-floor heating now allows for warm and dry spaces that rival the rest of the house that resides above the grass line,” he said.

While they may rank high on the enjoyment scale or bring an added level of sophistication or beauty to a home, some home improvement projects just don’t deliver when it comes to increasing property value. That said, ROI can vary by region, climate and what’s typical in your neighbourhood.

Landscaping

Although the satisfaction levels can be high, Forbes said some exterior work such as replacing cement or asphalt surfaces with bricks, planting new trees, installing driveway heating systems or artificial turf are often associated with lower return on investment.

Ultra-custom finishes

Highly personalized design choices — like niche built-ins, very bold tile selections or luxury features that aren’t common for your area — can be harder to “recover” at resale if they don’t match what most buyers want.

Pools

A pool can be a fun addition to a property — but it is not always a selling point or a value driver.

“They are a luxury and always have been. They skyrocketed in value during the pandemic as we were all stuck at home, but they can be an energy sink, cost a lot to maintain and after the first few years are not often in regular use,” said Charters.

“Thankfully you can’t discount enjoyment value — fun is also a good ROI, it can’t all be financial,” he added.