Renovating for Joy? Why Homeowners Are Remodeling—And How to Maximize Your Investment

Fresh findings from the 2025 Remodeling Impact Report reveal that certain home updates don’t just boost resale value—they boost happiness, too
Remodel by Everson Architect and Near & Streeter Custom Builders

Photo by Peter VonDeLinde

Renovating a home is rarely just about looks—it’s about how a space feels to live in every day. Maybe it’s finally creating the kitchen you’ve always dreamed of, carving out a peaceful primary suite, or taking care of the roof that’s long overdue for repair. Whatever the project, homeowners know the right renovation can transform daily life in ways that go far beyond aesthetics. And according to the 2025 Remodeling Impact Report from the National Association of Realtors (NAR) and the National Association of the Remodeling Industry, it turns out those instincts are right: Certain home updates don’t just add value when it comes time to sell, they also make homeowners happier in the here and now.

Infographic courtesy of NAR

The report found that 64% of homeowners said their most recent remodeling project gave them a stronger desire to be at home, while 46% reported feeling increased enjoyment in their space. Perhaps even more telling, 55% of people said they felt a major sense of accomplishment when looking at what they had created—a reminder that home improvements often pay emotional dividends long before any financial return comes into play.

Some projects topped the charts for homeowner satisfaction, earning what the report calls a perfect-10 “Joy Score”—the highest possible rating for personal happiness gained from a renovation. And while boosting resale value is always a smart consideration, these findings are a clear sign that remodeling is just as much about living well now as it is about investing in the future.

The projects that delivered the highest Joy Score—a 10 out of 10—were:

  • Adding a primary bedroom suite
  • A kitchen upgrade
  • New roofing

“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,” says Jessica Lautz, NAR deputy chief economist and vice president of research, in a prepared statement. “While homeowners take pride in seeing their personal tastes and design choices come to life, [realtors might] recommend different strategies to enhance the property’s resale value.”

Remodel by Rehkamp Larson Architects and Bronder Construction

Photo by Scott Amundson

While not every project offers a full payback at resale, some upgrades deliver impressive returns:

  • New steel front door: 100% cost recovery
  • Closet renovation: 83%
  • New fiberglass front door: 80%
  • New vinyl windows: 74%
  • Basement conversion to living area: 71%

Top motivations for remodeling include:

  • Upgrading worn-out surfaces/materials (27%)
  • Improving energy efficiency (19%)
  • Feeling ready for a change (18%)
  • Preparing to sell within two years (18%)

There are a handful of ways homeowners are paying for projects:

  • 54% used a home equity loan or line of credit
  • 29% used savings
  • 10% used credit cards

Perhaps the most telling stat from the report? If cost weren’t an issue, 92% of homeowners said they would remodel more areas of their home. In other words, smart renovations are about more than future resale—they’re about loving where you live today.

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