The home remodeling boom shows no signs of slowing down, with homeowners across the country tapping into their equity to take on everything from minor updates to major renovations. But while it may be tempting to dive into an elaborate kitchen makeover or luxury bathroom upgrade, a closer look at the numbers suggests that smaller, more practical improvements may offer better returns when it comes time to sell. According to the newly released 2025 Remodeling Impact Report, compiled by the National Association of REALTORS and the National Association of the Remodeling Industry, the projects with the highest cost recovery at resale tend to be simpler and more affordable—like swapping out a front door for steel.
Helping homeowners prioritize the right projects is where real estate professionals can add tremendous value. The Remodeling Impact Report compares the estimated cost of various home updates with the expected return at resale, based on input from both remodeling professionals and real estate agents. The findings show that a new steel front door offers a 100% return on investment, while other high-performing updates include closet renovations (83%), fiberglass front doors (80%), and new vinyl windows (74%). Even a complete kitchen renovation, though costly, still provides a solid 60% return, which can be worthwhile for homes that need a major refresh.
Interestingly, the report also considers the emotional payoff of remodeling through a “joy score” based on homeowner feedback. While the financial returns may favor more modest updates, projects like bathroom renovations or basement conversions often rank high for homeowner satisfaction. Jessica Lautz, deputy chief economist at NAR, notes that while homeowners love seeing their personal styles come to life, real estate agents may steer them toward different choices with better resale outcomes.
The motivation behind remodeling varies. The most common reasons include updating worn-out surfaces (27%), improving energy efficiency (19%), or simply wanting a change (18%). Another 18% of homeowners take on remodeling with plans to sell in the near future. For those homeowners, selecting projects with strong resale value can make a significant difference, especially as today’s buyers have become less willing to compromise on a home’s condition.
Real estate professionals play a growing role in helping clients navigate these choices. According to Angie Hicks, co-founder of the home services site Angi, agents are well-positioned to offer practical advice based on what local buyers expect. “You want to keep up with the Joneses, but you don’t want to beat the Joneses,” Hicks says, noting that over-improving for the neighborhood rarely pays off. Instead, she advises clients to lean on their agents for referrals to trusted contractors and insights into which upgrades matter most in their market.
Painting and roof replacement top the list of improvements most recommended by real estate professionals. Agents also report a growing number of homeowners asking for guidance on kitchen and bathroom upgrades—often two of the most scrutinized areas by potential buyers. As home prices remain high, making these spaces as move-in ready as possible can help justify those price tags and attract stronger offers.
Even for those not planning to sell anytime soon, the rise in home values has given homeowners a renewed sense of financial confidence to invest in their properties. Jason Hensler, president of NARI, says remodeling activity has continued to grow over the past two years, both in the number and size of projects. “Homeowners are discovering significant value and joy in these investments,” Hensler says, “whether it’s something as simple as a new door or as extensive as a kitchen overhaul.”
In short, the remodeling trend isn’t just about creating beautiful homes—it’s about making smart decisions that pay off emotionally and financially. With the right guidance and a clear sense of priorities, homeowners can feel confident that the work they put into their property will benefit them both now and in the future.