WASHINGTON – Homeowners prioritize personal enjoyment over potential resale value when undertaking remodeling projects, according to the National Association of Realtors (NAR) and the National Association of the Remodeling Industry's (NARI) 2025 Remodeling Impact Report. While projects like adding a primary bedroom suite, upgrading a kitchen, and installing new roofing had the highest "Joy Scores" for homeowners upon completion, different renovations like closets offered the best return on investment.

The report, which surveyed both homeowners and realtors, revealed that a new steel front door, closet renovation, and a new fiberglass front door topped the list for cost recovery. Realtors often recommend painting and new roofing to sellers preparing to list their homes. Demand among realtors has also increased for kitchen upgrades, new roofing, and bathroom renovations in the past two years.

“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 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.”

Despite rising mortgage rates and affordability concerns, the report found that these factors rarely influenced homeowners' remodeling decisions. Instead, motivations included upgrading worn-out features, improving energy efficiency, and the need for a change. Most homeowners (89%) indicated that housing affordability was not a deciding factor in their remodeling choices.

Americans spent an estimated $603 billion on home remodeling in 2024. The primary funding sources for these projects were home equity loans or lines of credit (54%), followed by savings (29%).

The report highlights a disconnect between homeowner satisfaction and cost recovery, suggesting that while homeowners value the personal benefits of certain renovations, realtors may advise different projects to maximize a home's resale potential. The most important outcomes for homeowners post-remodel were improved functionality and livability, durable materials, and enhanced aesthetics. Following renovations, 64% reported a greater desire to stay in their homes, and 46% experienced increased enjoyment of their living spaces.

For more information, visit nar.realtor.