This year, the National Association of Realtors' 2025 Remodeling Impact Report only features the top remodeling projects for cost recovery and joy scores. In the past, it was organized by project. This report also includes expanded realtor and consumer sections.
About the Joy Score
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. 43% 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
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.
Why people undertake remodeling
When consumers remodel, it is to upgrade worn-out surfaces, finishes, and materials (67%); to improve energy efficiency (19%), it is time for a change (18%), and because they will be selling in the next two years (18%).
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 nine percent 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.
Other highlights of this year's report
- Top projects for cost recovery and joy score continue to differ as people remodel for different reasons.
- Remodeling projects with the most cost recovery
- Remodeling projects that earned the highest Joy Scores
- Top remodeling projects REALTORS recommend completing prior to selling a home
- Top remodeling projects for which REALTORS have seen increased demand
- Whether housing affordability (lock-in effect due to high mortgage rates) is a top reason to remodel
- How consumers pay for remodeling projects
- How homeowners would proceed if cost were not an issue
