Kevin Sears President | Official website
The National Association of Realtors (NAR) and the National Association of the Remodeling Industry (NARI) have released their 2025 Remodeling Impact Report, providing insight into trends in home remodeling. The report evaluates Americans' reasons for remodeling, the results, and the happiness derived from these projects. According to the report, Americans spent an estimated $603 billion on home remodeling in 2024.
Joy Scores, based on homeowner satisfaction post-remodel completion, rated the addition of a primary bedroom suite, a kitchen upgrade, and new roofing with the highest scores of 10. In terms of cost recovery, the best projects were a new steel front door (100% recovery), closet renovation (83%), and a new fiberglass front door (80%).
Jessica Lautz, NAR deputy chief economist, noted the differences between emotional fulfillment and financial recovery, remarking, "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."
Realtors advise clients intending to sell their homes to focus on painting, roofing projects, and kitchen upgrades. An increase in demand for similar projects has been noted by realtors, particularly kitchen upgrades, roofing, and bathroom renovations.
Consumers primarily remodel to update worn surfaces, increase energy efficiency, make changes, or prepare to sell. NARI President Jason Hensler commented, "This report demonstrates that demand for remodeling remains robust, with 42% of NARI members experiencing an increase in contracting projects and 57% observing larger project scopes over the past two years."
Despite rising mortgage rates, most homeowners do not cite housing affordability as a primary reason for remodeling. Instead, many rely on the accumulated equity in their homes for such projects. Lautz added that homeowners enjoy the ability to invest in their homes without moving due to low mortgage rates: "Interestingly, despite the lock-in effect – where low-interest-rate mortgages discourage homeowners from moving – housing affordability isn’t a significant reason why consumers choose to remodel their homes."
Functional improvements, durability, and aesthetic enhancements are key outcomes valued by homeowners, with 64% expressing increased desire to remain home and 46% reporting more enjoyment of their living spaces after completing remodels. If cost were not a concern, 92% of consumers would opt for additional home remodels.
For detailed methodology, readers are directed to the NAR and NARI 2025 Remodeling Impact Report.
About NAR: The National Association of Realtors is the largest trade association in the United States, representing both residential and commercial real estate professionals.
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