Housing News

Homeowners Get the Most Joy from These Renovations. Can You Guess the Top Project?

When it comes to home remodeling projects, some bring homeowners the most joy—while other less-exciting projects give them the highest returns on their investments.

Homeowners who added a primary bedroom suite were the happiest after having the work done, according to a recent report from the National Association of Realtors (NAR) and National Association of the Remodeling Industry (NARI).

An upgrade in the kitchen, often the showpiece of a home, also brought homeowners joy, as did a new roof. Bathroom renovations and complete kitchen overhauls also made homeowners happy.

“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,” said NARI President Jason Hensler.

Which remodels had the highest ROI?

Other projects didn’t bring homeowners as much joy—but had higher returns on investment.

A new steel front door basically paid for itself, as homeowners generally received back what they paid for it when they sold their homes.

Closet renovations netted homeowners about 83% of what they spent on the renovation. They were followed by the not-as-lucrative fiberglass front doors, at an 80% cost recovery, new vinyl windows, at 74%, and new wood windows, at 71%.

While a new primary bedroom suite might make homeowners the happiest—it wasn’t the most profitable upgrade. Homeowners only got back about 54% of what they spent on the remodel.

Meanwhile, a full kitchen renovation and a minor kitchen upgrade had a 60% return on investment. Adding new bathrooms had a 56% return, while bathroom renovations only got homeowners back about 50% of their investment.

“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,” said NAR Deputy Chief Economist Jessica Lautz in a statement.

After the projects were completed, about two-thirds of homeowners, 64%, said they had a greater desire to spend time in their homes. Nearly half, 46%, said they enjoyed their living spaces more.

The report was based on a 2024 survey of more than 800 homeowners who had done a remodeling project. To figure the return on investment for various jobs, NAR also issued a remodeling industry cost survey, which received 177 responses, and a Realtor survey, which received 4,000 responses.

How do homeowners pay for remodels?

Homeowners dropped about $603 billion on remodeling projects last year, according to the report.

More than half of homeowners, 54%, paid for the projects with home equity loans or home equity lines of credit (HELOCs), according to the report. Higher property values helped many build up equity in their homes that they could tap into to pay for remodeling work.

Home equity loans can include cash-out refinances, where you replace your existing mortgage with a larger one that allows you to pocket the additional cash. Homeowners may also want to consider a HELOC, which is a line of credit secured using your home’s equity. Some also choose second mortgages, which are in addition to an existing mortgage.

In addition, homeowners ages 62 and older may be able to tap into their home equity using a reverse mortgage. The loans don’t need to be repaid until the home is sold or the homeowner moves out for at least a year or passes away.

Of the homeowners who didn’t use a home equity loan, 29% funded the work with savings; 10% used credit cards; 4% used other types of loans; 3% used gift money; and 3% financed the projects through the remodeler or store. (This does not add up to 100% as some homeowners used multiple sources of funding.)

“The substantial housing equity that homeowners have built up over time enables them to invest in transforming their homes while they remain in place,” Lautz said in a statement.