The home renovation wave shows no signs of slowing down, as Americans continue to invest billions each year in projects meant to refresh and improve their living spaces. But while ambitious kitchen remodels and spa-inspired bathrooms dominate design magazines, new research suggests that smaller, more practical updates may offer the best payoff when it comes time to sell.
According to the 2025 Remodeling Impact Report, released by the National Association of REALTORS® and the National Association of the Remodeling Industry, some of the most cost-effective projects are also the simplest. Replacing an entry door with steel, for instance, was found to recoup its entire cost at resale. Closet makeovers, new fiberglass doors, and updated vinyl windows also ranked high in cost recovery, often outperforming major renovations in terms of return on investment.
That doesn't mean homeowners should ignore larger undertakings. Kitchen and bathroom projects remain important for buyers, but they rarely recoup more than 60% of their cost. Still, they can help make a property more attractive and move-in ready, especially in a market where nearly half of buyers say they are unwilling to compromise on condition.
The report also highlights a different dimension of remodeling: happiness. Projects were assigned a "joy score," based on homeowner surveys. While cost recovery measures how much money you may get back at resale, the joy score reflects the personal satisfaction owners gain after a remodel. This distinction matters, as many households plan to stay in their homes for several years before selling, giving them time to enjoy their new spaces.
Real estate professionals are playing a larger role in these decisions. With 43% of homeowners reporting stress over repairs and renovations, agents are increasingly guiding clients toward upgrades that balance value with livability. Painting, either a single room or the entire home, and replacing the roof if necessary were among the most frequently recommended projects. These improvements can help a property stand out without overcapitalizing in ways that fail to pay off at closing.
Motivations for remodeling vary widely. Some owners simply want to refresh outdated finishes, while others aim to improve energy efficiency or adapt their homes to lifestyle changes. Rising home equity has also fueled demand, giving households more financial flexibility to take on both small and large projects. For those planning to sell in the near future, the Remodeling Impact Report offers a helpful guide to prioritize the kinds of improvements most likely to boost resale value.
Overall, the study underscores the balancing act between personal enjoyment and financial return. While a new suite of stainless steel appliances or a custom bathroom may not return every dollar spent, they may still provide satisfaction and make a home more appealing in a competitive market. On the other hand, projects like new doors, windows, or fresh paint can deliver both a strong return and broad buyer appeal.
For homeowners, the takeaway is clear: remodeling doesn't always have to be large-scale to make a meaningful difference. Whether preparing to list a home or simply seeking to enjoy it more fully, carefully chosen updates can add lasting value, both financially and emotionally.
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