2025 Remodeling Impact Report: What Homeowners Are Spending On and What Buyers Really Want

2025 Remodeling Impact Report: What Homeowners Are Spending On and What Buyers Really Want

As the real estate market adapts to economic uncertainty and evolving buyer expectations, home renovations have surged in importance—not just as personal upgrades, but as strategic decisions tied to future resale. According to the 2025 Remodeling Impact Report released by the National Association of Realtors (NAR) and the National Association of the Remodeling Industry (NARI), homeowners spent more than $600 billion on renovations last year. But what drives these projects, and which improvements do buyers actually want?

In this long-form breakdown, we’ll explore the motivations behind remodels, the renovations that deliver the most value, and what agents and sellers need to know in today’s competitive housing environment.

Remodel Spending Hits $600B in 2024: What’s Fueling the Surge?

Homeowners poured an astounding $603 billion into home improvement projects last year—up $183 billion from 2020. This uptick reflects a growing focus on lifestyle-driven renovations, even amid high interest rates and a slower real estate market. Surprisingly, 89% of surveyed homeowners said housing affordability had no influence on their decision to renovate, while only 18% reported plans to sell their home within the next two years.

So, if they’re not planning to sell, why are so many homeowners investing in upgrades?

Top Renovation Motivations:
- Replace worn surfaces (27%)
- Improve energy efficiency (19%)
- Simply “time for a change” (18%)
- Prepare for resale (only 4%)

In other words, most homeowners are renovating for themselves—not prospective buyers.

Which Upgrades Are Buyers Really Looking For?

Despite homeowners’ personal motivations, real estate agents play a key role in advising sellers on what improvements make homes more marketable. In a slower housing market, turnkey homes are clearly preferred over fixer-uppers, with a recent Bright MLS survey showing that 56% of buyers prioritize move-in readiness.

According to NAR’s survey, agents cited the following upgrades as most appealing to buyers:
- Kitchen upgrades – 48%
- New roofing – 43%
- Bathroom renovations – 35%
- New interior paint – 32%
- Complete kitchen overhauls – 26%

It’s worth noting that while a full kitchen renovation may not recoup all costs, it still ranks high in terms of buyer interest and homeowner satisfaction.

Cost Recovery vs. Joy Score: Understanding Renovation Value

While renovations may boost appeal and attract more offers, most don’t deliver a full return on investment. Only a steel front door replacement reached 100% cost recovery, while other upgrades offered varying ROI levels:

UpgradeAvg. Cost RecoverySteel Front Door100%Closet Renovation83%Fiberglass Front Door80%Vinyl Window Replacement74%Wood Window Replacement71%Minor Kitchen Remodel60%Full Kitchen Renovation60throom Renovation50%New Bathroom Addition56%

But ROI isn’t everything.

Kitchen upgrades scored some of the highest “joy scores” among homeowners, indicating strong personal satisfaction, even when cost recovery is lower. Meanwhile, simpler fixes like garage door replacements and new paint had modest financial returns but lower emotional impact.

What This Means for Sellers and Real Estate Professionals in 2025

In a market still challenged by high mortgage rates and economic pressure, agents and sellers must be strategic. While the “fixer-upper” crowd still exists, the vast majority of buyers now favor properties that require minimal immediate work.

Key Takeaways for Sellers:
- Focus on cosmetic and functional upgrades that deliver moderate returns and improve curb appeal.
- Don’t over-improve—buyers may not value costly additions as much as homeowners do.
- Kitchens, even if only partially updated, remain high on buyers’ wish lists.
- Agent insight is key—before renovating, consult with a local expert to understand what buyers in your area prioritize.

Remodel with Purpose, Not Just Profit

The 2025 Remodeling Impact Report paints a clear picture—most homeowners aren’t remodeling for resale, but the right improvements can still boost a home’s marketability and price. As the housing market continues to evolve, aligning renovation efforts with buyer demand is more important than ever.

Whether you’re a homeowner considering updates or a real estate agent advising clients, the focus should be on function, affordability, and targeted improvements—not necessarily luxury overhauls. With strategic planning and the right upgrades, even modest remodels can set a property apart in today’s competitive market.

https://agentsgather.com/2025-remodeling-impact-report-what-homeowners-are-spending-on-and-what-buyers-really-want/