I think it will depend on the quality of the sofa. Reupholstering a sofa will be expensive but if it's a quality sofa that doesn't need to have new springs then it may be worth it.

I bought a Key City sofa at an estate sale. It was in a formal living room that was barely used (I knew the owners). It has 8-way hand-tied springs. It had a very dated, very formal, pink and green Asian themed fabric. I had it reupholstered in a dark green chenille and the upholsterer said it was in fantastic shape for it age. It's probably 30 years old and it still in good shape.

If it worth the $ and effort then you can change the shape of the arms, back, type of cushions...

It will not be just the fabric. All foam has a certain life...this one is past it. Redoing all the foam (quality, shaped foam that makes it worth to reupholster) will be more than buying a nice new couch with updated everything. The arm style is super dated.

I've posted this before, but I had a curved sectional that I LOVE recovered in a Crypton light-colored, very subtle, small herringbone. It is bombproof. My grandson spends a lot of time on it and often will eat a snack, so I didn't want to worry about it. The first month, I spilled a full glass of red wine on it :( I couldn't believe it; I never have ever spilled red wine and I was sick about it. I quickly got on the crypton website to see how to clean it, A little dish soap and then rinse with clean water (the cleaning code for my fabric is W). The stain came right up..you would never, ever know. I even found a small spot on the lower front that I'd missed, probably 2 weeks later and it also came right up. I love this stuff.

I bought my fabric from here: This is the one I chose...made in the USA, water clean.

https://www.greenhousefabrics.com/fabric/b5605-parchment

this is how it turned out:

I recovered my sofa that I loved. It was in good shape but the upholstery was not. Still going strong 13 years later and I still love the new not old fabric and it is holding up well, much better than the previous fabric. But I probably looked through 25 books to find it. Since re-upholstering is expensive, keep looking until you find the perfect fabric that you love. Then it is worth it.

Your home is lovely! What brand is your sofa? If it’s got a hardwood frame, and eight way hand tied coils, it could be worth it. Good fabrics can be purchased online now too, often at a discount. I like to reupholster for that reason when I can.

Beautiful home! I love the Peppercorn walls! I would suggest buying a new sofa. Upholstery and labor are very expensive. So, unless it is an heirloom piece, I would recommend replacing. Having a piece reupholstered is also time consuming and you will be without your sofa for a few weeks.

Thank you all for your replies and comments! I purchased it 21 yrs ago from a local custom furniture store and looks like the manufacturer was Westwood Industries. It’s in excellent condition due to seldom use, but I’m now taking a closer look to see if it’s really worth reupholstering or best to just replace with new.
Question... How do you determine an 8-way hands tied coils?

You won't be able to see the 8 way hand tied coils without cutting open the sofa, but given the age of your sofa, it most likely does have them. Yes, re-upholstering is frightfully expensive, but if you decide to purchase a new sofa, make sure you can see a cutaway of the construction. Many newer sofas are using springs far inferior to those of 20+ years ago. Unless you like a soft cushion, avoid down filled. A urethane cushion will provide a firmer surface as opposed to typical foam frequently available, today. Look for a hardwood frame, keeping in mind that new growth wood is not as hard as what you purchased, 20+ years ago. If you pick up one leg of the sofa, it should not flex. Decide if you want removeable cushion covers before making your ourchase. Look for a sturdy fabric that will handle stains, spills, use by grandchildren, etc. Look for a sturdy leg design that well supports the sofa. Decide if you want loose or fixed (or removeable via zippers back cushions). Avoid a sofa that shows wood pieces attached solely with glue. You'll need to put some time into researching what you want, before commiting to a purchase.

My last sofa was a custom piece and I've been searching for its equal for some time...

A new quality sofa can cost $3500 to $5000. So if you have to pay $1500 to reupholster your sofa that’s worth it.

I think your room is lovely. With everything else updated and lovely is it ok to have a nod to where you have been? If the fabric is worn and tired then you have to do something but if it doesn't' drag the room down due to it being worn out I would continue to enjoy it. Pictures don't show us the condition of the actual fabric.