Overview of Remodeling Growth

In the evolving landscape of home improvement, 2024 has marked a significant turn, with homeowners increasingly engaging in remodeling projects. According to the National Association of the Remodeling Industry (NARI), contracting work has surged by 42%, contributing to an impressive total of approximately $603 billion spent on home renovations this year. This surge is documented in the 2025 Remodeling Impact Report, an annual publication by NARI in collaboration with the National Association of REALTORS® (NAR).

What Drives Homeowners to Remodel?

The motivations behind home remodeling are multifaceted. Key reasons include:

• Upgrading worn-out surfaces and materials (27%)
• Enhancing energy efficiency (19%)
• A desire for change (18%)
• Preparing to sell their home within the next two years (18%)

Interestingly, 89% of homeowners indicated that housing affordability did not influence their remodeling decisions, although 9% acknowledged it as a motivating factor.

Consumer Satisfaction and Project Outcomes

The report identifies a correlation between the completion of remodeling projects and homeowner satisfaction. Projects such as adding a primary bedroom suite, upgrading kitchens, and installing new roofs earned maximum “Joy Scores” of 10, showcasing their popularity.

Conversely, NARI members noted that the most financially rewarding projects include:

• New steel front door (100% cost recovery)
• Closet renovation (83%)
• New fiberglass front door (80%)

“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,” notes Jessica Lautz, NAR deputy chief economist and vice president of research.

Recommended Renovations by REALTORS®

As homeowners focus on remodeling, REALTORS® recommend specific projects to strengthen a home’s market appeal. The top suggestions include:

• Painting the entire home (50%)
• Painting a single interior room (41%)
• Installing new roofing (37%)

In addition, growing demand has been observed for kitchen upgrades (48%), new roofing (43%), and bathroom renovations (35%).

Financing Home Improvements

When seeking funds for remodeling, homeowners predominantly utilize:

• Home equity loans or lines of credit (54%)
• Savings (29%)
• Credit cards (10%)

“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,” Lautz added.

Future Remodeling Aspirations

Homeowners express a strong desire to further enhance their living spaces. If financial constraints were removed, 92% indicated they would consider additional remodeling projects. The key benefits reported from completed renovations include:

• Improved functionality and livability (28%)
• Durable materials and appliances (23%)
• Enhanced aesthetic appeal (23%)

Following these renovations, 64% of homeowners reported a greater desire to stay in their homes, while 46% expressed increased enjoyment of their living spaces.