This article was originally written April 9th, 2025 and published by Pro Remodeler.
The National Association of Realtors today released the 2025 Remodeling Impact Report which assesses homeowners’ reasons for undertaking remodeling projects, the outcomes of these projects and the degree of happiness they report once a project is completed. This year’s report features a different structure compared to previous years, with expanded sections on both consumers and NAR members (Realtors).
Americans spent roughly $603 billion on home remodeling projects in 2024. Forty-two percent of NARI members have found a greater demand for contracting and remodeling work in the last two years, while 57 percent cite an increase in project scale in the same period, resulting in either a larger project or the renovation of more than one room.
“This report demonstrates that demand for remodeling remains robust, with 42% of NARI members experiencing an increase in contracting projects and 57 percent observing larger project scopes over the past two years,” says NARI President Jason Hensler. “Homeowners are discovering significant value and joy in these investments—from smaller upgrades, such as front doors and windows, to major renovations like kitchens and primary suites.”
Top Projects
NAR calculates the Joy Score based on homeowners’ reported happiness with completed renovations. Forty-three percent of homeowners feel happy when they see their completed project, while 38 percent report feeling satisfied. The average Joy Score is 8.2, while three renovation projects—the addition of a primary bedroom suite, kitchen upgrade, and new roofing—elicit perfect Joy Scores of 10.
NAR also supplies the Recovered Project Cost percentage which estimates the likely dollar value each renovation project will add to the house at resale. According to the report, a new steel door has an 100 percent cost recovery, followed by a closet renovation with 83 percent. Bathroom renovations lag behind with only a 50 percent cost recovery.
“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,” says Jessica Lautz, NAR deputy chief economist and vice president of research. “While homeowners take pride in seeing their personal tastes and design choices come to life, Realtors may recommend different strategies to enhance the property’s resale value.”
Perception of Demand
Realtors recommend homeowners take on a remodeling project before attempting to sell their home. Fifty percent suggest painting the entire home, 41 percent suggest painting one interior room, while 37 percent suggest replacing old roofing with new. NAR members have also noted increased demands for certain renovation projects, with kitchen upgrades, new roofing, and bathroom renovations in highest demand among homeowners.
Consumer Approaches
Consumers reported upgrading worn-out surfaces, finishes and materials (27 percent) as a leading reason to remodel, followed by improving energy efficiency (19 percent), selling in the next two years, (18 percent), and wanting a change (18 percent).
A whopping 89 percent of homeowners report that housing affordability was not a factor in their decision to remodel; while 5 percent say it was a factor, choosing not to move homes because of it; and another 5 percent say it was a deciding factor and cannot afford to move.
Renovation projects were primarily paid for with a home equity loan or line of credit (54 percent), followed by savings (29 percent), then by credit card (10 percent).
Twenty-nine percent of homeowners hired a professional to complete the entirety of a remodeling project, 24 percent hired the labor but purchased the materials, and 24 percent completed the entire project themselves.
Twenty-eight percent of owners report that the most important result of remodeling is increased functionality and livability; while 23 percent say durable and long-lasting results, materials and appliances; and 23 percent cite beauty and aesthetics as the primary result.
If cost were not an issue, 92 percent of homeowners would want to remodel more areas of their home.