Photo by Spacecrafting/Bo Carlock
America’s appetite for home remodeling shows no signs of slowing. Last year alone, homeowners spent an estimated $603 billion on remodeling projects. The scale of these projects continues to grow—at least according to the National Association of Realtors and The National Association of the Remodeling Industry’s 2025 Remodeling Impact Report. For builders, designers, architects, and other trade professionals, understanding today’s remodeling motivations is key to staying ahead of client expectations.
Bigger Budgets, Bigger Projects
In the past two years, remodeling professionals have seen a noticeable shift in demand. About 42% of them reported a greater need for their services, with homeowners increasingly looking to make updates and improvements. But it wasn’t just the number of projects that grew—the scale of the work also expanded. In fact, 57% of remodeling professionals noted that many of the projects they took on were larger than before, often involving multiple rooms or bigger renovations that required more extensive work. This shift suggests that homeowners are not just focused on smaller updates, but are investing in larger, more ambitious transformations to their homes.
Buyers Are Less Willing to Compromise
The 2025 Remodeling Impact Report reveals a significant shift in buyer expectations, with 46% of buyers now less willing to compromise on the condition of a home. As a result, realtors are advising sellers to address key upgrades before listing their properties.
- Painting the entire home (50% of realtors recommend doing this before selling)
- Painting a single room (41%)
- New roofing (37%)
- Kitchen upgrades (30%)
- Bathroom renovations (24%)
Projects in Highest Demand
According to the report, the industry has observed a surge in demand for certain types of home projects—the most popular being kitchen upgrades. In fact, 48% of real estate agents reported this as a top priority for homeowners when buying. New roofing follows closely behind at 43%, while bathroom renovations have also been in high demand, with 35% of realtors noting their popularity. Interior painting is another frequent request, with 32% of agents highlighting it as a sought-after project. Complete kitchen renovations also made the list, with 26% of realtors seeing homeowners choose to overhaul their kitchens entirely. These trends reflect the ongoing focus on improving key living spaces that offer both functional and aesthetic value.
Photo by Spacecrafting/Rob Grosse
Where ROI is Strongest for Clients
For professionals advising clients on the best projects to maximize their investment, certain upgrades offer the highest return on investment. These projects not only enhance the home’s appeal but also deliver significant value when it comes time to sell.
- New steel front door (100% of cost recovered)
- Closet renovation (83%)
- New fiberglass front door (80%)
- New vinyl windows (74%)
- Basement conversion to living area (71%)
Why Are Clients Remodeling?
While rising home prices and mortgage rates might be top of mind for many, the report says they aren’t the primary motivators behind most remodeling decisions among homeowners nationwide: Only 9% of homeowners across the country cited affordability pressures as a deciding factor for their projects. Instead, the most common reasons for remodeling tend to focus on improving the home’s functionality and comfort.
Many homeowners choose to remodel to update worn-out materials, with 27% reporting this as a key driver. Improving energy efficiency is another strong motivation, with 19% of homeowners looking to make their homes more sustainable. Additionally, 18% of homeowners embark on remodeling projects due to a lifestyle change or evolving needs, whether it’s creating more space, adjusting to new family dynamics, or simply refreshing their living environment.
Ultimately, the report underscores that remodeling is both emotional and financial for clients. It’s about livability just as much as it’s about value—and clients increasingly expect their homes to function beautifully and efficiently. For professionals in the field, that means guiding clients toward projects that bring both immediate satisfaction and long-term ROI.
After all, as the report notes, 92% of homeowners would remodel even more areas of their home if budget wasn’t a concern—proof that demand for thoughtful, well-executed renovations isn’t going anywhere.
