Eco Upgrades That Add Value: What 2025 Renovators Are Spending On—and Why

A lot has changed in the past couple of decades, and home renovations in Canada are no longer just about style—they’re about sustainability, functionality, and long-term value. In 2025, more homeowners are investing in eco-friendly upgrades that not only improve comfort and efficiency but also increase property value and reduce utility costs over time.

According to a late 2024 CIBC poll, 49% of Canadians had recently completed or planned a renovation, with an average spend of $19,000. So, what’s driving this trend of renovations? Priorities are shifting. The top motivators for renovations today are:

• Cosmetic upgrades (41%)

• Improved functionality (39%)

• Boosting home value (27%) (Source: NerdWallet & Made In Canada)

As a leading design-build firm in Toronto, Imperio Construction is seeing this shift firsthand. Homeowners are looking for practical, sustainable upgrades that align with today’s economic and environmental realities.

Here's how that’s playing out in 2025—and how to make the most of your renovation dollars.

Why Eco-Friendly Home Upgrades Are Booming in 2025

Canadians are more environmentally aware and cost-conscious than ever before. From fluctuating mortgage rates to rising energy prices, the is a growing pressure to make smart, future-proof home investments and it's driving a new generation of renovations.

Key Influences:

• Carbon tax rollback in early 2025, which created short-term energy cost relief but renewed attention on long-term energy strategies.

• High renovation interest among refinancers and renewers (74%–77%) planning upgrades in the next 5 years.

• Government incentives (such as the Canada Greener Homes Loan) offering financing for retrofits and energy-efficient improvements.

Sustainability isn't just a buzzword—it's a blueprint for smarter, healthier, more resilient homes.

What are the Top Eco-Friendly Home Upgrades in 2025?

1. Energy-Efficient Windows and Doors

As important as they are to your home, windows have always been the weakest link in energy efficiency. However, window technology has come a long way since the days of single pane windows. Swapping out old windows is one of the most impactful upgrades for energy conservation and comfort. In 2025, triple-pane glazing, low-E coatings, and advanced thermal frames are becoming the norm in custom renovations.

• Why it matters: 25–30% of heating and cooling energy can be lost through inefficient windows.

• Estimated ROI: ~70–75% on resale; up to 15% annual savings on energy bills.

2. Insulation and Air Sealing

Improving attic insulation and sealing drafts is a low-cost, high-impact way to reduce heating and cooling demands. Many older Toronto homes—especially pre-1980 builds—are under-insulated by today’s standards.

• Why it matters: Poor insulation contributes to high energy waste and discomfort in both summer and winter.

• Popular in: Semi-detached homes, heritage renovations, and income-property retrofits.

3. High-Efficiency HVAC and Heat Pumps

Some homeowners are replacing gas furnaces and AC units with electric heat pumps, which offer both heating and cooling and qualify for government rebates.

• Why it matters: Lower emissions, reduced operating costs, and improved indoor air quality.

• Bonus: Smart thermostats are often bundled, further improving control and efficiency.

4. Water-Saving Fixtures and Greywater Systems

Low-flow toilets, showerheads, and faucet aerators are now standard in high-performance homes. More advanced systems, such as greywater recycling, are gaining traction in large-scale or multi-unit builds.

• Why it matters: Cuts water bills and reduces strain on municipal systems, especially in high-density areas.

5. LED Lighting and Smart Electrical Systems

LED lighting remains a foundational upgrade, but in 2025, we’re seeing a rise in smart home integration—from motion sensors and timers to whole-home energy monitors.

• Why it matters: Reduced energy use, longer lifespan, and full automation flexibility.

• Popular in: Kitchen, basement suites, and rental properties where durability and efficiency are key.

Multifamily and Income Suite Upgrades: A Growing Sub trend

One of the most notable 2025 trends is the rise of eco-renovations in multifamily properties and income-generating basement units.

• With more Canadians upsizing or renovating for multigenerational living, sustainability is becoming part of the investment equation.

• Homeowners are retrofitting rental units with high-efficiency HVAC, noise insulation, and durable low-VOC materials to reduce monthly costs and make the unit more attractive to tenants.

Imperio Construction works with clients in GTA neighborhoods to convert aging basements into modern, rentable suites that meet both energy standards and market appeal.

Functionality is the New Luxury

While “green” features were once considered luxury upgrades, they are quickly becoming baseline expectations. What buyers and homeowners really want in 2025 is functionality—spaces that work better, last longer, and cost less to operate.

Some examples of what “functional” looks like today:

• Open-concept kitchens with energy-saving induction cooktops

• Multi-use spaces (e.g., offices that convert to guest rooms)

• Smart storage solutions

• Climate zoning systems for reduced energy cost

• Renovations that reduce long-term maintenance, not just boost curb appeal

Making the Most of Your Budget

According to CIBC and NerdWallet, the average renovation spend in 2025 is around $19,000. Here’s how to maximize that:

Budget Focus	Upgrade Example	Value Strategy
Insulation & air sealing	Attic insulation, weatherstripping	Immediate energy savings
Windows & doors	Replace 3–5 windows	Long-term comfort + resale value
HVAC efficiency	Ductless heat pump system	Rebates available; ideal for older homes
Smart upgrades	Thermostat + LED retrofit	Affordable + scalable across entire home
Water conservation	Low-flow fixtures	Low cost, quick installation, high impact

Imperio Tip: If your budget is tight, prioritize the building envelope first (windows, insulation, HVAC). These core systems offer the best return on efficiency and comfort.

How Imperio Construction Helps Clients Build Better

At Imperio, we're not just following renovation trends—we helping to create them. Every project we take on considers:

✅ Energy performance – through design, material selection, and mechanical systems

✅ Health and comfort – via low-VOC materials, better airflow, and smarter layouts

✅ Durability and value – with construction that stands up to time and climate

Whether you’re upgrading a single-family home or modernizing a multi-unit investment property, our team delivers results that respect your vision, budget, and the planet.

Sustainability isn’t a future trend—it’s a present necessity. In 2025, Toronto homeowners are responding to economic pressures, environmental awareness, and shifting lifestyle needs by choosing eco-friendly and budget conscious renovations that add long term value.

If you’re ready to turn your home into a high-performing, future-ready space, the team at Imperio Construction is here to guide you from first sketch to final fixture.

📌 Disclaimer

This article is for informational purposes only and does not constitute financial, legal, or investment advice. Readers should consult with licensed professionals before making renovation or construction decisions. Statistics are current as of the date of publication.

🏢 About Imperio Construction

Imperio Construction is a Oakville-based design-build firm dedicated to delivering exceptional residential and commercial projects across the Greater Toronto Area. With over a decade of experience, our team specializes in custom homes, large-scale renovations, and full-service project management, guiding clients from concept to completion with integrity, craftsmanship, and transparency.

Our team is made up of passionate architects, designers, engineers, and project managers who work collaboratively to create beautiful, functional spaces tailored to each client’s lifestyle and goals. At Imperio, we believe in building lasting relationships as much as we believe in building exceptional spaces—and that starts with listening, communicating clearly, and delivering on our promises.