The ‘Joy’ Factor: NAR Report Reveals Top Remodeling Projects and Resulting Homeowner Happiness
The National Association of Realtors on April 9 released its 2025 Remodeling Impact Report, which reveals the reasons why homeowners remodel, the outcome of taking on projects, and the level of happiness in the home once a project is completed.
Last year, Americans spent an estimated $603 billion on remodeling their homes, and during the past two years, 42% of members of the National Association of the Remodeling Industry reported a greater demand for remodeling work. Additionally, 57% reported that the scale of projects has increased.
"This report demonstrates that demand for remodeling remains robust," says NARI President Jason Hensler. "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."
Top Projects
NAR calculated a Joy Score for each project based on the happiness homeowners reported with their renovations. The projects receiving the highest Joy Scores:
- Primary bedroom suite addition
- Kitchen remodel
- New roof
Why Homeowners Remodel
Consumers said their primarily reasons for remodeling focused on:
- Upgrading worn-out surfaces, finishes, and materials
- Increasing energy efficiency
- Getting their home ready to sell with two years
- Feeling like it's time for a change
Money and Remodeling
Housing affordability and increased mortgage rates were thought to be a motivating factor for remodeling, but 89% of homeowners reported that wasn't the case. In fact, only 9% of homeowners said elevated home prices and/or mortgage rates prompted them to remodel.
To pay for the remodeling project, 54% of consumers used a home equity loan/line of credit while 29% used savings and 10% used credit cards.
If costs were not a factor, 92% of homeowners said they would choose to remodel additional areas of their homes.
Top Remodeling Results
The most important outcomes from remodeling, according to homeowners:
- Improved functionality and livability
- Enhanced beauty and aesthetics
- Durable and long-lasting materials and appliances
