How to use AI to plan your next home renovation

By Citizens Staff

Renovation projects enhance and modernize your home, while increasing its livability and resale value. While you may be excited to tackle a new project and improve your home, digging into the details when researching materials, contractors and costs can sometimes feel overwhelming. AI home renovation tools help to simplify the process, taking you from inspiration to design, layout and budgeting. Let's explore what AI tools can (and can't) do when remodeling or renovating your home.

Please be advised that AI tools can be incorrect in some cases and you should also speak with an expert prior to making any final decisions. AI can be an amazing tool for estimates, brainstorming and ideation but please consult a professional prior to home renovation execution. 

Cost estimates by project and location

How much should you expect to pay to remodel a bathroom? If you're working on a budget for a renovation project, AI tools can compare the cost of some different options. Flooring is one item that may vary in price. Using an approximate square footage of your space, price out the cost of luxury vinyl plank flooring versus tile or hardwood to give you an idea of how much you can expect to spend. Narrow down the options that work best for your home and your finances before you call flooring installers. Remember, it's always a good idea to get multiple quotes from local contractors for a large renovation.

Prompt you can plug into AI:

"How much does it typically cost to renovate a [kitchen/bathroom/basement] in [city or region] in [year]?"

Why it's useful:

This prompt gives AI a clear scope and location, helping it tailor cost estimates based on regional labor/material prices and market trends.

Sample Q&A:

User: How much does it typically cost to renovate a bathroom in Boston in 2025?

AI: In 2025, a mid-range bathroom renovation in Boston typically costs between $18,000 and $25,000. High-end renovations may exceed $35,000 depending on custom finishes, plumbing upgrades, and layout changes.

Renovations that boost resale value

Home renovations aren't just about personal style - they're also about smart investing. Whether you're prepping to sell your home or just want to make upgrades that pay off down the line, it's important to focus on renovations that actually increase your home's value. AI can help identify which projects typically offer the best return on investment in your area. That way, you won't overspend on upgrades that don't boost resale value or appeal to buyers. From kitchen updates to energy-efficient features, it can guide you toward high-impact changes. This is especially valuable in competitive or fast-changing real estate markets. Use this prompt to ensure your renovation dollars are working as hard as possible:

Prompt you can plug into AI:

"What home renovations increase resale value the most in [neighborhood or housing market]?"

Why it's useful:

Buyers want ROI. This helps users prioritize improvements that will increase home value specific to their area, not just national averages.

Sample Q&A:

User: What renovations increase resale value most in New York?

AI: In New York, kitchen and bathroom upgrades, energy-efficient windows, and adding usable square footage (like finishing a basement or attic) offer the best ROI - often between 60% to 80%.

Creating a budget

One of the most important, and challenging, parts of any home renovation can be setting a budget. It's easy to overlook hidden costs like permits, contractor markups, and unexpected repairs when planning. AI can help build a detailed renovation budget based on your total available funds, room type, and project size. With a solid breakdown of materials, labor, and contingency, you'll be better prepared to manage expenses and avoid surprises. A good budget doesn't just protect your wallet. It helps you make smart design and scope decisions. You can even use it as a reference when negotiating quotes with professionals. Use this prompt to stay grounded and organized from day one:

Prompt:

"Help me create a renovation budget for [room type] with a total budget of [$X], including labor, materials, permits, and a contingency buffer."

Why it's useful:

Builds a realistic budget breakdown to help stay financially on track.

Sample Q&A:

User: Help me build a bathroom renovation budget with $20,000.

AI: Sure! Here's a sample breakdown:

• Labor: $7,000
• Materials (tile, vanity, fixtures): $6,000
• Plumbing & electrical: $2,500
• Permits: $500
• Contingency (10%): $2,000
  Total: $18,000–$20,000

Choosing the right contractor

If you often feel out of your league when dealing with carpenters, electricians and plumbers, AI tools can come to the rescue. With an AI-generated list to rely on, you won't forget to ask contractors about their past renovation experience, if they have insurance and their availability for the job. AI can also summarize online reviews when weighing different contractor quotes. However, do your own due diligence as well. Some contractors don't have a large online practice, which could affect the quality of information AI will pull together for you. Ask friends, family and local neighborhood groups on social media for recommendations. Talk to others who have used the contractor under consideration. You'll want to take both online and off-line feedback into account when finding the best contractor for your job. Use this prompt to protect your investment and avoid costly missteps from the very beginning:

Prompt:

"What questions should I ask a contractor before hiring them for a [project type] renovation in [city]?"

Why it's useful:

Gives you a clear checklist to protect your investment and avoid shady operators.

Sample Q&A:

User: What should I ask before hiring a contractor for a kitchen remodel in Pittsburgh?

AI: Ask about licenses, insurance, references, timelines, payment schedules, warranty policies, and who will be on-site daily. Request a detailed written contract and avoid large upfront payments.

Clarify your vision

When it's time to take your inspiration from the screen to reality, AI can assist by generating mood boards, color schemes or layout ideas. Upload a picture or sketch of your existing room into an AI design tool. Using a real image can give you an idea of what can be done within the confines of your existing space. Play around with virtual paint colors, light fixtures or furnishings before you invest money in these items. If you don't like the look of something on the screen, you can easily customize the image by swapping out one item at a time. Or you can scrap the entire sketch and start over.

With AI home renovation tools, you can add, move or replace objects to determine the most functional layout of a room. But a virtual design doesn't always translate perfectly to the real world. Once you've completed a design using AI, you'll need to take it offline. AI's digital tools can't take exact measurements or replace the depth of expertise of a professional designer.

Prompt:

"Create an image of a [style] [room type] renovation featuring [key materials], [colors], and [specific fixtures or layouts]. Make it feel [adjective about mood or atmosphere]."

Why it's useful:

• Specific design elements (e.g., "white shaker cabinets," "quartz countertops") guide the visual accurately.
• Functional features like "center island with seating" make it practical.
• Style anchor ("modern farmhouse") ensures consistency.
• Lighting and mood requests help with tone and ambiance (e.g., "bright," "pendant lights").

Sample Q&A:

User: Generate a realistic image of a modern farmhouse-style kitchen renovation. Include white shaker cabinets, matte black hardware, quartz countertops, a large center island with seating, and natural wood floors. Add pendant lights over the island and a large window over the farmhouse sink. Make it feel open and bright.

AI: (AI should generate an image of a completed renovation of a modern farmhouse-style kitchen.)

How to pay for your home renovation

Unless you're sitting on a pile of cash, chances are you'll need to finance your renovation - at least in part. AI can help explore your financing options based on your credit score, home equity, location, and total project cost. From HELOCs and home equity loans to FHA 203(k) programs and cash-out refinancing, it can suggest what's available and most affordable. This is especially helpful when you're trying to match the right financial tool to the scale of your renovation. You'll save hours of research and avoid costly mistakes like choosing a high-interest loan or the wrong repayment terms. Understanding your options can also help you time your project more strategically. Use this prompt to make your renovation financially sustainable from the start.

Prompt:

"What are the best ways to finance a [$X] renovation in [state]? I have a credit score of [score] and [equity/savings]."

Why it's useful:

Tailors loan or cash flow solutions to individual users - saving time and reducing risk.

Sample Q&A:

User: What's the best way to finance a $50,000 renovation in New Jersey? My credit score is 740 and I have 25% home equity.

AI: You could qualify for a HELOC or a home equity loan with a fixed rate. Given your equity and strong credit, you may also explore a cash-out refinance if current rates are favorable.

Consider a HELOC for funding

While AI can play a role in your home renovation, it's not the only tool you'll need. Before committing to a new project, consider what's in your financial toolbox. For homeowners with equity available, a home equity line of credit (HELOC) provides quick access to funds at interest rates that are usually highly competitive. A HELOC can help manage the large expenses associated with a home renovation by allowing you to pay for the project over time, in monthly installments that fit into your household budget.

Your dream space is within reach

In today's high-tech world, AI home renovation tools allow you to tap into a wealth of home design and improvement ideas. But AI alone can't build your dream home. While AI has the ability to save time and money during the renovation process, it's important to understand the extent of its capabilities and how results may differ from a real-world application. When paired with the knowledge of a professional designer or contractor, AI can assist with the planning of many popular home renovation projects.

Are you ready to start your next home renovation project? Find out how a HELOC with Citizens FastLine® could help you manage costs.

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