The Remodeling Projects With the Most Impact

One of the joys of homeownership is taking on remodeling projects that help make a home truly your own. Such projects can also be one of the most expensive parts of homeownership, so recouping your investment via increasing the value of your home is often an important consideration before choosing to remodel.

Top remodeling projects for homeowner satisfaction and cost recovery continue to vary as individuals remodel their homes for diverse reasons, according to the National Association of REALTORS® (NAR) and National Association of the Remodeling Industry’s (NARI) 2025 Remodeling Impact Report. The report assesses the reasons homeowners undertake remodeling projects, the outcomes of these projects and the increased happiness experienced in the home once a project is completed. 

According to this year's report, Americans spent an estimated $603 billion on home remodeling projects in 2024, and the projects that received the highest "Joy Scores"—a ranking from 1 to 10 based on the happiness homeowners reported upon completion—include the addition of a primary bedroom suite (10), a kitchen upgrade (10) and new roofing (10). In contrast, the remodeling projects with the highest cost recovery—as estimated by members of NARI—include a new steel front door (100%), closet renovation (83%) and new fiberglass front door (80%).

If you're thinking about putting your home on the market in the not-so-distant future, there are certain remodeling projects REALTORS® recommend prioritizing, including painting the entire home (50%), painting a single interior room (41%) and installing new roofing (37%). Additionally, the projects for which REALTORS® have observed the highest increase in demand are a kitchen upgrade (48%), new roofing (43%) and a bathroom renovation (35%).

When consumers remodel their homes, the primary reasons include upgrading worn-out surfaces, finishes and materials (27%); improving energy efficiency (19%); desiring a change (18%) and preparing to sell within the next two years (18%).

While housing affordability and rising mortgage rates have been considered potential motivators for home remodeling, most consumers (89%) reported that housing affordability was not a deciding factor in their decisions to remodel. However, for a smaller segment of consumers (9%), housing affordability did serve as a motivating factor for undertaking remodeling projects.

To finance their remodeling projects, consumers primarily relied on home equity loans or lines of credit (54%), savings (29%) and credit cards (10%).

Homeowners report that the most important outcomes from remodeling projects are improved functionality and livability (28%); durable and long-lasting results, materials and appliances (23%); and enhanced beauty and aesthetics (23%). Following their remodeling projects, 64% of homeowners expressed a greater desire to be in their homes, while 46% reported increased enjoyment of their living spaces.

If cost were not a factor, 92% of consumers indicated they would choose to remodel additional areas of their homes.

Reprinted with permission from RISMedia. ©2025. All rights reserved.

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