Why Homeowners Are Remodeling More Than Ever in 2025 (And What Projects Bring the Most Joy + ROI)

In a housing market shaped by tight inventory and rising rates, homeowners aren’t just staying put — they’re leveling up. According to the 2025 Remodeling Impact Report from the National Association of Realtors® (NAR) and the National Association of the Remodeling Industry (NARI), Americans spent a staggering $603 billion on remodeling projects last year. But what’s really interesting is why they’re remodeling, and which projects deliver the most satisfaction and value.

Let’s break it down.

🔨 What Brings the Most Joy?

Not all remodeling projects are created equal — at least not when it comes to how homeowners feel afterward. The Joy Score is a scale from 1 to 10 measuring homeowner happiness post-project. These upgrades scored a perfect 10:

• Adding a primary bedroom suite

• Upgrading the kitchen

• Installing new roofing

These aren’t just functional updates — they’re lifestyle game-changers.

💵 Which Projects Pay You Back?

If resale value is part of your strategy, some projects recoup more of your investment than others. According to NARI pros, the projects with the highest cost recovery are:

• New steel front door – 100% ROI

• Closet renovation – 83% ROI

• Fiberglass front door – 80% ROI

Sometimes, the smallest details make the biggest impact.

🏡 What Are Realtors® Recommending to Sellers?

Thinking about selling? These are the top updates Realtors® recommend before going to market:

• Paint the entire home – fresh and clean sells

• Paint a single interior room – even a small refresh goes a long way

• Install new roofing – buyers love peace of mind

🔥 Where Buyer Demand Is Heating Up

If you're wondering what upgrades buyers are gravitating toward in 2025, Realtors® say these are the most in-demand:

• Kitchen upgrades – 48% increase in buyer interest

• New roofing – 43%

• Bathroom renovations – 35%

These are the upgrades that sell homes.

🤔 Why Are People Remodeling?

The reasons vary, but here’s what’s driving most homeowners to take the plunge:

• Worn-out materials/surfaces – 27%

• Improving energy efficiency – 19%

• Desire for change – 18%

• Preparing to sell – 18%

Remodeling isn’t just about resale anymore — it’s about enjoying the home you're already in.

💳 How Are People Paying for It?

Most homeowners are using the equity they’ve built up over the years. Here’s how they’re financing:

• Home equity loans or HELOCs – 54%

• Savings – 29%

• Credit cards – 10%

Despite the “lock-in effect” of low mortgage rates, affordability wasn’t a major factor for most — just 9% said it influenced their decision.

🛋️ The Emotional Return Is Real

After completing a remodel:

• 64% felt a stronger desire to be at home