What Homeowners Really Want: 2025 Remodeling Trends Reveal a Clear Split Between Joy and ROI

If you’ve been wondering whether it’s worth remodeling your home, the latest 2025 Remodeling Impact Report from the National Association of Realtors® (NAR) and the National Association of the Remodeling Industry (NARI) has some answers—and a few surprises.

Americans spent a jaw-dropping $603 billion on home remodeling in 2024. But here’s the twist: the projects that bring the most happiness don’t always offer the biggest bang for your buck when it’s time to sell.

The Joy Factor: What Makes Homeowners Happiest?

The report introduces a “Joy Score”—a 1 to 10 rating based on how happy homeowners feel after completing a remodeling project. Topping the list with perfect 10s:

• Adding a primary bedroom suite

• Kitchen upgrades

• New roofing

These renovations are all about improving daily life and comfort, which explains the emotional payoff. Whether it’s a dream kitchen or a luxurious new bedroom retreat, these upgrades make staying home feel like a win.

Return on Investment: Where You’ll See the Best Cost Recovery

If you’re remodeling with resale in mind, the projects with the highest return on investment might surprise you. According to NARI members, these upgrades offer the best cost recovery:

• Steel front door: 100% cost recovery

• Closet renovation: 83%

• Fiberglass front door: 80%

They may not be as flashy as a kitchen redo, but small functional upgrades like these pack a solid financial punch.

What Realtors® Recommend Before Selling

Thinking about listing your home? Realtors® suggest tackling projects that improve overall appearance without breaking the bank:

• Paint the entire home (50%)

• Paint a single room (41%)

• Install new roofing (37%)

These updates are relatively low-cost but help create a strong first impression—often a game-changer when selling.

Why Homeowners Remodel

So what’s driving all this remodeling activity? Top reasons include:

• Upgrading worn-out materials (27%)

• Improving energy efficiency (19%)

• Simply wanting a change (18%)

• Preparing to sell within two years (18%)

Despite rising mortgage rates and housing affordability concerns, only 9% of homeowners cited affordability as a reason to remodel. The majority are tapping into their built-up home equity to finance upgrades, often through home equity loans (54%), savings (29%), or credit cards (10%).

Living Better, Staying Put

One of the most striking insights? Remodeling isn’t just about dollars and cents—it’s about lifestyle.

• 64% of homeowners feel a greater desire to be home post-remodel

• 46% report more enjoyment of their living space

• 92% say they’d remodel more if cost weren’t a factor

As Jason Hensler, president of NARI, put it: “Homeowners are discovering significant value and joy in these investments—from smaller upgrades to major renovations.”

Final Takeaway

Whether you’re planning to sell or stay long-term, remodeling offers a mix of emotional and financial rewards. The key is knowing your goals: If you want joy and lifestyle upgrades, think kitchens and suites. If you’re focused on resale value, prioritize curb appeal and functional updates. Either way, 2025 proves that remodeling is more than a trend—it’s a smart, strategic move in today’s market.