Residential Real Estate News
Americans Spent $603 Billion on Home Remodeling Projects in 2024
According to the National Association of the Remodeling Industry's 2025 Remodeling Impact Report, homeowner satisfaction and cost recovery from remodeling projects continue to vary widely, reflecting the diverse motivations behind home improvements.
The report explores why homeowners pursue remodeling projects, the results of those efforts, and how these renovations impact overall satisfaction and enjoyment at home. The 2025 edition introduces a new structure, featuring expanded insights from both Realtors® and homeowners.
In 2024, Americans invested approximately $603 billion in home remodeling projects. The report highlights the projects that brought homeowners the most happiness, as measured by the "Joy Score" (rated from 1 to 10). Among the top-scoring projects were the addition of a primary bedroom suite, a kitchen upgrade, and new roofing--all receiving perfect Joy Scores of 10.
When it comes to financial return, NARI members identified projects with the highest cost recovery rates: a new steel front door (100%), a closet renovation (83%), and a new fiberglass front door (80%).
"Homeowners remodel for a variety of reasons, and it's fascinating to see the disconnect between emotional satisfaction and financial return," said Jessica Lautz, NAR deputy chief economist and vice president of research. "While personal design choices bring joy, Realtors often advise different improvements to enhance resale value."
The top remodeling projects Realtors recommend before selling a home include painting the entire home (50%), repainting a single room (41%), and installing a new roof (37%). Additionally, the projects seeing the most significant increase in buyer demand are kitchen upgrades (48%), new roofing (43%), and bathroom renovations (35%).
Homeowners most often cited the following reasons for remodeling: replacing worn-out surfaces, finishes, or materials (27%); improving energy efficiency (19%); wanting a change (18%); and preparing to sell within two years (18%).
"Remodeling activity remains strong," said NARI President Jason Hensler. "Over the past two years, 42% of our members have seen an uptick in project volume, while 57% report a growth in project size. Whether it's minor upgrades like new doors or major renovations like kitchens and suites, homeowners are seeing real value and enjoyment in these investments."
While rising mortgage rates and affordability challenges could be seen as potential motivators for staying put and remodeling, the report reveals that 89% of consumers did not consider housing affordability a key reason for renovating. However, 9% did identify it as a contributing factor.
To finance these improvements, most homeowners turned to home equity loans or lines of credit (54%), followed by personal savings (29%) and credit cards (10%).
"Despite the lock-in effect caused by low-interest-rate mortgages, affordability isn't a major driver behind remodeling decisions," Lautz added. "Instead, it's the significant equity homeowners have built that's enabling them to reimagine their spaces and invest in their current homes."
The most important outcomes for homeowners included improved functionality and livability (28%), long-lasting materials and results (23%), and enhanced aesthetics (23%). Following their renovations, 64% of homeowners reported a stronger desire to spend time at home, and 46% noted greater enjoyment of their living spaces.
Notably, 92% of homeowners said they would remodel additional areas of their home if cost were not a consideration.
