Americans spent over $600 billion on remodeling in 2024.

Yes, $603 billion. That’s how much homeowners across the U.S. spent on remodeling projects in 2024, according to data from the National Association of Realtors® and the National Association of the Remodeling Industry (NARI). 

The scale of investment speaks volumes: even as home prices and mortgage rates remain elevated, Americans are choosing to improve rather than move.

This year’s Remodeling Impact Report has been restructured to offer even more insight. It breaks down projects that bring the most ROI vs. projects that bring the most joy.

And in addition to consumer responses, it includes expanded input from Realtors, making it a practical resource for professionals guiding both buyers and sellers through today’s market.

The Projects That Bring the Most Joy

The report includes a “Joy Score”—a simple 1-to-10 scale measuring homeowner satisfaction after a project is completed. Three renovations earned a perfect 10:

• Primary bedroom suite addition – This isn’t just about square footage. It’s about creating a personal retreat that reflects the homeowner’s style and lifestyle. Think walk-in closets, spa-like bathrooms, and space to breathe.
• Kitchen upgrade – The kitchen remains the heart of the home. From new cabinets and countertops to better flow and modern appliances, kitchen upgrades are often deeply personal—and deeply satisfying.
• New roofing – While less glamorous, new roofing brings peace of mind. A solid, leak-free roof means protection from the elements and often lowers long-term maintenance costs.

According to Jessica Lautz, NAR deputy chief economist and vice president of research: 

“Homeowners undertake remodeling projects for numerous reasons, but what remains intriguing is the disparity between the joy experienced post-remodel and the actual cost recovery.

“While homeowners take pride in seeing their personal tastes and design choices come to life, Realtors® may recommend different strategies to enhance the property’s resale value.”

The Best Bang for Your Buck? It’s the Front Door

If you’re improving based on return-on-investment, some of the best bets are relatively simple:

• New steel front door – With 100% cost recovery, this upgrade offers the best of both worlds: enhanced security and a strong first impression.
• Closet renovation – At 83% cost recovery, this project adds functionality and can transform underused space into something more practical.
• New fiberglass front door – Clocking in at 80%, this alternative provides an upscale look with long-lasting durability.

While these projects may not spark the same emotional payoff as a kitchen or bath remodel, they’re low-cost, high-impact upgrades that help a home shine, especially in competitive markets.

What Industry Professionals Recommend Before Listing

When getting a home ready to hit the market, the goal isn’t just to make it look better; it’s to make buyers feel better about it. And sometimes that comes down to relatively simple changes.

According to the report, these are the most commonly recommended projects by Realtors:

• Painting the entire home – 50% of Realtors suggest this. Fresh paint can make a home look clean, current, and well cared for.
• Painting a single interior room – 41% recommend this more targeted approach, often focusing on high-traffic or outdated spaces.
• Installing new roofing – 37% of agents say this adds buyer confidence and addresses potential inspection issues before they come up.

These recommendations are less about aesthetics and more about eliminating red flags, helping sellers net a higher price and a faster sale.

Where Buyer Demand Is Rising

Whether it’s increased functionality or improved design, buyers are gravitating toward homes that have already been updated. 

The report highlights three projects that have seen the biggest surge in buyer demand:

• Kitchen upgrade – Cited by 48% of Realtors as an area of rising demand. Buyers love move-in-ready kitchens with modern appliances and layouts.
• New roofing – 43% of agents say this is a growing priority. A new roof gives buyers peace of mind and helps avoid financing hiccups tied to condition.
• Bathroom renovation – Mentioned by 35% of Realtors, updated bathrooms—especially primary baths—are becoming more of a must-have than a bonus.

If you’re preparing for market, these upgrades could make all the difference between sitting stale or selling strong.

Why Homeowners Remodel (It’s Not What You Think)

With housing affordability a top concern nationwide, you might expect that to be the main reason people renovate. But the data tells a different story.

Only 9% of consumers said affordability motivated them to remodel. An overwhelming 89% said it wasn’t a factor at all.

Instead, here’s why homeowners are taking on renovations:

• 27% – To upgrade worn-out surfaces, finishes, or materials
• 19% – To improve energy efficiency and lower utility costs
• 18% – Simply because they wanted a change
• 18% – To prep their home for sale in the next two years

Many homeowners are sitting on significant equity, and they’re using it to make their existing homes work better for their current lifestyle.

Lautz explained: 

“Interestingly, despite the lock-in effect – where low-interest-rate mortgages discourage homeowners from moving – housing affordability isn’t a significant reason why consumers choose to remodel their homes.

“Instead, the substantial housing equity that homeowners have built up over time enables them to invest in transforming their homes while they remain in place.”

How They’re Paying for It

The remodeling boom isn’t just driven by desire; it’s fueled by access to capital. Many homeowners are tapping into their equity to fund upgrades.

Here’s how consumers are financing their projects:

• 54% used home equity loans or lines of credit (HELOCs), allowing them to borrow at lower rates than credit cards.
• 29% used savings, either because they planned ahead or were responding to urgent repairs.
• 10% relied on credit cards, often for smaller or unexpected upgrades.

This mix reflects both the growing comfort homeowners have with investing in their properties and the financial flexibility that strong equity positions provide.

According to NARI President Jason Hensler:

“This report demonstrates that demand for remodeling remains robust, with 42% of NARI members experiencing an increase in contracting projects and 57% observing larger project scopes over the past two years.

“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.”

The Emotional Return on Renovation

It’s not all about money. Many homeowners say the biggest benefit of remodeling is how it makes them feel in their space.

According to the report:

• 64% of homeowners said they felt a greater desire to be at home after a remodel.
• 46% reported more enjoyment in their living space.
• 92% said they would remodel additional areas if cost weren’t a barrier.

Top emotional and functional outcomes include:

• Improved functionality and livability – 28%
• Durable, long-lasting results – 23%
• Enhanced aesthetics – 23%

In a world where people are working, parenting, and relaxing at home more than ever, these upgrades aren’t just vanity projects—they’re lifestyle investments.

Key Takeaways for Homeowners

​​Whether you’re preparing to sell or guiding a buyer envisioning long-term potential, this report is more than just a snapshot of renovation trends; it’s a playbook for deeper conversations. The data can help understand both the emotional and financial stakes of home improvement.

Use these insights to make better decisions in today’s equity-rich, inventory-tight market:

• Cost recovery isn’t everything, but knowing where ROI and homeowner satisfaction overlap lead to better decisions on potential improvements.
• Paint, roofing, and kitchen updates still top the list for both resale value and buyer demand.
• Understand your motivations: Not everyone’s remodeling to sell. Many are in it for comfort, style, and long-term usability.
• Equity access is a major driver: Think through financing options if you're considering improvements.