Introduction
Homeowners and renters remodel, redesign, and restructure their homes for a variety of reasons. This report takes a deep dive into why a homeowner remodels, the outcome of taking on projects, and the increased happiness in the home once a project is completed. It also contains:
- The top cost recovery for remodeling projects, as estimated by members of the National Association of the Remodeling Industry (NARI)
- The demand of each project is likely to have for buyers, according to REALTORS®
- How much REALTORS® estimate that homeowners can recover on the cost of the projects if they sell the home.
Americans spent an estimated $603 billion in 2024 on remodeling their homes.1 Among NARI members, 42% found a greater demand for contracting in remodeling work during the last two years. Fifty-seven percent of NARI members cited that the scale of the projects increased, resulting in either a larger project or the remodeling of more than one room in the last two years.
This matches what REALTORS® conveyed: 46% of home buyers are less willing to compromise on the condition of the home when purchasing.
To gather cost data, NARI members were informed that the home would be a 2,300 square foot house, which aligns with the average size according to U.S. Census data. The house is a post-1978 construction with no concealed problems. To ensure broad relevance, the projects and materials used represent standard or typical quality, with some projects incorporating "better-quality" materials. However, there are no projects featuring top-of-the-line materials.
Top Joy Scores and Cost Recovery of Home Remodeling Projects
There are numerous approaches to remodeling projects for homeowners and even more methods to analyze the projects’ successful outcomes.
NAR calculated a Joy Score for each project based on the happiness homeowners reported with their renovations. Forty-three percent feel happy, and 38% feel satisfied when they see their completed project, with a typical Joy Score of 8.2. There were three projects that received a perfect Joy Score of 10: added primary bedroom suite, a kitchen upgrade, and new roofing.
REALTORS® provided an estimate of the likely dollar value each project would add to the house at resale. NAR calculated a Recovered Project Cost percentage by comparing that dollar value to the estimated cost of each project provided by NARI members. For example, the highest percentage cost recovered on a project was 100% for a new steel door.
REALTOR® Perception of Demand for Home Remodeling Projects
REALTORS® often suggest a homeowner take on a project remodel before attempting to sell their home. The top projects REALTORS® recommended potential sellers take on are painting the entire home, painting one room, and new roofing.
Since 2020, REALTORS® have seen home preferences shift. The top remodeled areas NAR members have seen an increased demand for in the last two years have been kitchen upgrades, new roofing, and a bathroom renovation.
Consumer Approach to Remodeling Projects
Why Undertake Remodeling
When consumers remodel, it is to upgrade worn-out surfaces, finishes, and materials (27%); to improve energy efficiency (19%); it is time for a change (18%); and because they will be selling in the next two years (18%).
Money and Remodeling
Housing affordability and the rise in mortgage rates have been pondered to be a motivating factor to remodel one’s home. The majority of consumers, 89%, reported housing affordability was not a deciding factor to remodel. However, for 9% of consumers, the rise in home prices/mortgage rates was a motivating factor to remodel as they did not or could not move.
To pay for the project, 54% of consumers used a home equity loan/line of credit to remodel, 29% used savings, and 10% used credit cards.
1 Improving America's Housing, Joint Center for Housing Studies at Harvard University, 2025.
