Why More Homeowners Are Choosing to Remodel (and Where They’re Getting the Best Bang for Their Buck)
April 2025

With property values on the rise, many homeowners are choosing to stay put—and remodel. And it's not just because moving feels out of reach. According to the 2025 Remodeling Impact Report from the National Association of Realtors and the National Association of the Remodeling Industry, most people aren’t remodeling because of housing affordability or high mortgage rates. In fact, only 10% of surveyed homeowners listed that as a reason.

So why the remodeling boom?

It turns out, many homeowners are tapping into their home equity. With increased property values, they’re able to reinvest in their homes without taking on major financial risk. The study shows that 54% used a home equity loan or line of credit to fund their updates. Another 29% used savings, and 10% relied on credit cards.

financing remodel

 

Why Remodel Now?
The top reason homeowners gave for renovating was simple: their home’s materials and systems were aging. 27% of respondents wanted to upgrade outdated parts of their home. Another 19% were focused on improving energy efficiency, while 18% just wanted a change—or were preparing to sell in the next couple of years.

What Projects Pay Off?
Not all remodels offer the same return on investment. Interestingly, a new steel front door came out on top with full cost recovery, thanks to its durability, energy efficiency, and added security.

Real estate agents also report high demand for kitchen upgrades and new roofing. And when it comes to selling, the most common advice? Paint. 51% of agents recommend painting the entire home before listing, while 41% suggest painting at least one room.

Return on investment for remodel

 

DIY or Hire a Pro?
Homeowners are pretty split on how they handle renovations. The report found that:

  • 29% hired a professional for the whole job

  • 24% did the project themselves

  • 24% opted for a mix—buying materials themselves, but hiring a pro for the labor

What Matters Most in the End?
Once the dust settles, homeowners say what matters most is how the remodel makes the home function better (28%). Others value how it looks (23%) or how durable and long-lasting the materials and appliances are. And 15% focused on green features and energy savings.

Kitchen remodel biggest roi

 

Here’s one stat that really stood out:
92% of homeowners said they’d remodel even more if cost wasn’t a factor.

Thinking about remodeling?
If you’re not sure which updates make the most sense for your home—or if you’re considering remodeling before selling—reach out! I’m happy to help you weigh your options and figure out what improvements could offer the best return in our local market.

Check out our other posts on remodeling!

Source: 2025 Remodeling Impact Report by the National Association of Realtors and the National Association of the Remodeling Industry, April 2025.