Hot remodeling projects
As economic anxiety and rising costs continue to sideline new homebuyers, and as the nation's housing stock continues to age, the renovation and remodel market is poised to explode.
But what updates are homeowners prioritizing right now? The National Association of Realtors sheds light on this pertinent topic for LBM pros, hardware stores and building supply folks of all stripes. Read on for insights from NAR's 2025 Remodeling Impact Report.
NAR's report reveals the following home remodeling projects tend to offer the highest returns, based on estimated cost recovery at resale:
- New steel front door: 100% (estimated return based on upfront cost)
- Closet renovation: 83%
- New fiberglass front door: 80%
- New vinyl windows: 74%
- New wood windows: 71%
- Basement conversion to living area: 71%
- Attic conversion to living area: 67%
- Complete kitchen renovation: 60%
- Minor kitchen upgrade: 60%
- Bathroom addition: 56%
- New primary suite: 54%
- Bathroom renovation: 50%
Recouping costs is one thing; "joy" derived from home renovations is quite another. Dealers might consider how alluring homeowners tend to find the following projects.
In 2024, U.S. homeowners spent approximately $603 billion last year on renovations, per NAR's report. And with the average U.S. home now older than 40 years old, remodeling should stay on an upward trajectory. With that in mind, it's smart to decipher the why behind renovations as well
Consumers surveyed for the report said their top motivations for undergoing a home remodel were:
- To upgrade the home’s worn-out surface finishes and materials (27%).
- To improve energy efficiency (19%).
- A desire for a change (18%).
- Because they plan to sell their home within the next two years (18%).
NAR also reports a recent uptick in the number of homeowners tackling big-ticket items like kitchen upgrades, installing new roofs or major bathroom overhauls, which could be a sign of more willingness to spend despite economic turmoil.
“This report demonstrates that demand for remodeling remains robust,” says Jason Hensler, president of the National Association of the Remodeling Industry. “Homeowners are discovering significant value and joy in these investments—from smaller upgrades, such as front doors and windows, to major renovations like kitchens and primary suites,” he says.
