As we enter 2026, many St. Louis homeowners are asking themselves a critical question: Is this the right year to remodel? As the owner of JT McDermott Remodeling Contractors, a design-build firm serving the Saint Louis metro area, I believe 2026 presents a compelling opportunity for homeowners. Our team has helped hundreds of families navigate the remodeling decision.
The Two Essential Conditions for Remodeling in 2026
If you’re considering a kitchen remodel, bathroom renovation, or basement transformation in the St. Louis area, 2026 could be your ideal year—provided two fundamental conditions are true:
First, you plan to stay in your home for at least five years. Remodeling is an investment in your quality of life and your property’s value. To maximize both the financial return and personal enjoyment of your renovation, a longer-term commitment to your home is essential.
Second, you have either strong equity in your home or a solid cash position. Whether you’re tapping into home equity or have savings set aside specifically for improvements, having the financial foundation in place ensures your project moves forward smoothly without creating unnecessary stress.
If both of these conditions apply to you, the market dynamics of 2026 are working in your favor.
Why 2026 Is a Strategic Year for St. Louis Remodeling
Rising Labor Costs Are a Reality
The remodeling industry faces a persistent, long-term labor shortage that shows no signs of abating. This shortage is driving wages upward across skilled trades, from master carpenters to electricians to plumbers. Because much of the materials we use in residential remodeling are produced domestically here in the United States, these rising labor costs are impacting not just installation prices but also the cost of goods themselves.
What does this mean for you? Remodeling costs will likely continue their upward trajectory. Starting your project in 2026 means locking in today’s pricing before additional increases take effect.
Interest Rates Are Trending Downward
For homeowners planning to finance all or part of their remodeling project, 2026 brings welcome news: interest rates are coming down. This makes financing options like home equity lines of credit (HELOCs), which we typically recommend for remodeling projects, increasingly attractive. Lower rates mean lower monthly payments and less interest paid over the life of your loan, making it easier to afford the renovation you’ve been dreaming about.
The St. Louis Housing Market Favors Remodeling Over Moving
Perhaps the most compelling reason to remodel in 2026 is the current state of the St. Louis housing market. Inventory remains tight across desirable neighborhoods like Clayton, the Central West End, Webster Groves, Ladue, Kirkwood, and Richmond Heights. Finding that “perfect” home is harder than ever.
Many homeowners are locked into exceptionally low primary mortgage rates they secured several years ago. Even with interest rates declining in 2026, moving would likely mean trading a 3% mortgage for something considerably higher. This dynamic is keeping sellers in place, perpetuating low inventory levels.
When you’re weighing the decision between moving and remodeling, consider this: whether you sell your current home or purchase a different one, you’re going to invest in improvements either way. You’ll either need to prepare your home for sale or modify your new purchase to meet your needs. Unless you’re building new construction, which comes with its own timeline and cost considerations, it’s nearly impossible to find exactly what you want in today’s limited market.
Making the Move-or-Improve Decision in St. Louis
At McDermott Remodeling, we work extensively with historic homes throughout the St. Louis area, and we’ve seen countless homeowners discover that their existing property has far more potential than they initially realized. With our design-build approach, we can reimagine your current space to deliver the functionality, aesthetics, and modern conveniences you’re seeking, often at a lower total cost than moving and renovating a different property.
Our in-house design services allow us to maximize your home’s potential while respecting its architectural character, particularly important in St. Louis’s many historic neighborhoods. From complex structural modifications to preserving original details, our master carpenter project managers bring the expertise needed to transform your vision into reality.
If you’ve decided this is the year, start by exploring the project that excites you most: kitchen remodeling, bathroom renovations, home additions, or basement finishing. Wondering about costs? Our kitchen remodel cost guide provides real St. Louis pricing.
Is 2026 Your Year to Remodel?
If you’re planning to stay in your St. Louis home for five or more years and you have the equity or cash position to invest in your property, 2026 presents a strategic window. Rising labor costs, improving financing conditions, and persistent housing inventory challenges all point toward remodeling as a smart financial decision.
The home you already own, enhanced to meet your exact needs, may be far superior to anything you’ll find on the market, and likely more cost-effective too.
Ready to explore what’s possible for your St. Louis home? Contact JT McDermott Remodeling Contractors to discuss your kitchen, bathroom, or basement remodeling project. As Certified Graduate Remodelers and Certified Aging in Place Specialists, we bring the expertise and design-build capabilities to transform your home into exactly what you need for the years ahead.