The 2025 Remodeling Impact Report, released by the National Association of Realtors® (NAR) and the National Association of the Remodeling Industry (NARI), reveals that homeowners derive the most satisfaction from adding a primary bedroom suite, upgrading the kitchen, and installing new roofing—each earning a perfect Joy Score of 10. In terms of cost recovery, replacing a steel front door offers the highest return at 100%, followed by closet renovations at 83% and new fiberglass front doors at 80%. These findings underscore the value homeowners place on both personal enjoyment and financial return when undertaking remodeling projects.
The report also indicates a shift in homeowner motivations, with 27% remodeling to upgrade worn-out surfaces, 19% aiming to improve energy efficiency, and 18% seeking change or preparing to sell within two years. Despite rising mortgage rates, 89% of consumers reported that housing affordability was not a deciding factor in their decision to remodel. To finance these projects, 54% utilized home equity loans or lines of credit, 29% used savings, and 10% relied on credit cards.
Realtors have observed increased demand for kitchen upgrades, new roofing, and bathroom renovations over the past two years. They often recommend painting the entire home, painting a single interior room, and installing new roofing as top remodeling projects for sellers. These updates not only enhance the home’s appeal to potential buyers but also contribute to higher resale values.
