The Home Equity Goldmine: Why Suffolk County Homeowners Are Choosing Renovations Over Moving in 2025

A remarkable financial shift is happening right under our noses in Suffolk County. While mortgage rates hover near 7% and home prices remain stubbornly high, homeowners are discovering they’re sitting on a treasure trove of untapped wealth—their home equity. Over the last five years, homeowners have gained about $150,000 in home equity, roughly $30,000 annually, with homeowners across the U.S. reaching record levels of equity.

This equity boom is fundamentally changing how Long Island families approach home improvement. Instead of packing up and moving to find their dream home, they’re choosing to create it right where they are.

The Numbers Tell the Story

Spending on home renovations is expected to reach $509 billion in 2025, signaling that U.S. homeowners may be slowly but surely expanding the size and scope of home projects. But what’s driving this surge isn’t just wishful thinking—it’s cold, hard financial reality.

Almost half of all mortgaged homes are considered “equity-rich,” with owners holding 50% or more equity in their properties. For Suffolk County homeowners, this translates to unprecedented financial flexibility. 48M U.S. homeowners with mortgages have some level of tappable equity, at an average of $206K per borrower.

Even more telling is this statistic: In the past 24 months, there have been more new net accounts added to access ‘Home Equity’ (HELOCs + Cash-Out) than in the previous 12 years combined. However, while homeowners are setting up these credit lines, they have not yet withdrawn the funds – suggesting a strong pent-up demand for home renovations that has yet to materialize.

Why Suffolk County Homeowners Are Staying Put

The decision to renovate rather than relocate isn’t just about money—though that’s certainly part of it. This staying-in-place phenomenon is caused by four main factors: current homeowners don’t want to sell their properties and re-enter a housing market that has mortgage rates much higher than the sub-3% rates of the pandemic era, and there is very high home equity in the U.S.

For Suffolk County families, the math is compelling. In the real estate industry, it’s generally agreed upon that renovating a current home can typically be cheaper than building a new home from scratch or buying a larger existing home, with it being $49,000 cheaper on average to renovate an existing home and $79,000 cheaper to expand it than to buy a new one.

As Suffolk County natives who understand the unique challenges of our local market, we at Rich’s Construction see this trend firsthand. As Suffolk County natives, we know what it takes to remodel a home in our region. The combination of high property values, limited inventory, and the desire to stay in established communities makes renovation the smart choice for many families.

The Financing Revolution

Home equity loans and HELOCs have become the preferred financing method for major renovations. In 2025, fixed rates for home equity loans sit between 7% and 9%, according to Bankrate. While these rates might seem high compared to the ultra-low mortgage rates of recent years, they’re still attractive when you consider the alternative costs of moving.

Many homeowners tap into this home equity through a home equity line of credit (HELOC) for home renovations. This is also an appealing option because even if the home renovations are expensive, they’re being financed through a HELOC at more manageable monthly payments.

The tax advantages add another layer of appeal. In many cases, interest is deductible on mortgage-related debt up to $750,000 if the loan is used for home renovations and you itemize deductions, according to the IRS.

What This Means for Your Suffolk County Home

This equity surge presents an unprecedented opportunity for Suffolk County homeowners to transform their living spaces. Whether you’re dreaming of a gourmet kitchen, a spa-like bathroom, or a whole-home renovation, your equity could be the key to making it happen.

At Rich’s Construction, we’ve seen the transformation this approach can bring. Rich’s Construction stands out in Suffolk County for our reliability, competitive pricing, and commitment to quality. We understand that home projects can be stressful, so we strive to provide a hassle-free experience, characterized by clear communication and punctual delivery.

Our comprehensive services—from kitchen renovations and bathroom remodeling to whole-home transformations—are designed to maximize both your comfort and your home’s value. With 20+ years of experience, we’ve mastered the art of quality home renovation. We’re locally owned—your local neighbors, not some out-of-town company—and every project gets our complete focus and effort.

Looking Ahead: The Golden Age of Remodeling

Industry experts predict that by the second half of 2025, growth is expected to accelerate, leading into what Todd described as a potential “Golden Age of Remodeling” in 2026-2027, with double-digit annual increases in remodeling activity.

For Suffolk County homeowners, this means now is the perfect time to start planning. Homeowners are likely waiting for interest rate stabilization before tapping into their home equity. If rates fall below 6%, this could trigger a wave of remodeling projects as homeowners unlock financing.

The message is clear: your home equity isn’t just a number on paper—it’s a powerful tool for creating the living space you’ve always wanted. And with experienced contractors like those at Rich’s Construction ready to help, there’s never been a better time to turn your renovation dreams into reality.

Ready to explore how your home equity can fund your next project? Home Renovations in Suffolk County, NY have never been more accessible or affordable. Contact Rich’s Construction today to discover how we can help you transform your house into the home of your dreams, all while building lasting value for your family’s future.