KEY HIGHLIGHTS
-
$603 billion spent on home remodeling in 2024.
-
Top Joy Score projects (10/10): primary bedroom suite, kitchen upgrade, new roofing.
-
Top cost recovery projects: new steel front door (100%), closet renovation (83%), fiberglass front door (80%).
-
Main reasons for remodeling: worn-out surfaces (27%), energy efficiency (19%), lifestyle change (18%), prepping to sell (18%).
-
Most recommended by Realtors®: full-home painting (50%), single-room painting (41%), new roofing (37%).
-
Most in-demand projects: kitchen upgrade (48%), new roofing (43%), bathroom renovation (35%).
-
64% of homeowners feel a stronger desire to be at home post-remodel.
-
92% would remodel more if cost weren’t a barrier.
Home Remodels Bring Joy, Value – But Not Always Return on Investment
Homeowners continue to pursue a wide range of remodeling projects, driven by personal needs, aesthetic goals, and long-term plans, according to the 2025 Remodeling Impact Report from the National Association of Realtors® (NAR) and the National Association of the Remodeling Industry (NARI).
In 2024 alone, Americans invested an estimated $603 billion into home remodeling projects. The report explores why these projects are undertaken, the emotional and functional results, and the return on investment—both financially and personally.
Some projects scored a perfect Joy Score of 10 out of 10, reflecting homeowners’ happiness after completion. These included primary bedroom suite additions, kitchen upgrades, and new roofing. But high happiness doesn’t always mean high returns. The best cost recovery projects, according to NARI contractors, were a new steel front door (100%), closet renovation (83%), and a new fiberglass front door (80%).
“Homeowners undertake remodeling projects for numerous reasons, but what remains intriguing is the disparity between the joy experienced post-remodel and the actual cost recovery,” said Jessica Lautz, NAR deputy chief economist. “Personal satisfaction doesn’t always align with market value.”
From the Realtor® perspective, projects recommended before listing a home include painting the entire home (50%), painting one room (41%), and installing new roofing (37%). These are not only cost-effective but have also seen rising demand, especially kitchen upgrades (48%), new roofing (43%), and bathroom renovations (35%).
Homeowners gave several reasons for remodeling:
-
27% cited worn-out materials.
-
19% aimed to improve energy efficiency.
-
18% simply wanted a change.
-
18% were preparing to sell within two years.
“Demand for remodeling remains robust,” said Jason Hensler, NARI President. “From new windows to complete kitchen overhauls, homeowners are finding value and happiness in reinvesting in their space.”
Interestingly, housing affordability—while often discussed as a factor in home improvement decisions—played a minor role. Only 9% cited it as a motivator, while 89% said it didn’t influence their decision to remodel. Instead, many tapped into existing home equity (54%), with others relying on savings (29%) and credit cards (10%).
“Despite the lock-in effect of low mortgage rates, affordability isn’t driving remodels,” Lautz added. “It’s equity that’s fueling them.”
When asked what mattered most about their remodeling projects, homeowners pointed to:
-
Improved functionality/livability (28%)
-
Durability and quality (23%)
-
Aesthetic appeal (23%)
The results? 64% said they now have a greater desire to be at home, and 46% say they enjoy their home more. And if money were no object, a full 92% would take on even more projects.
For full methodology, see page 27 of the 2025 Remodeling Impact Report.
