Remodeling is both an art and a science. A quality remodel can add personal and financial value to a home in different measures. Projects are motivated by hundreds of different factors. The top reasons most people cite for undertaking a remodeling project are to improve aesthetics, functionality, and increase a home’s value.
Whether you are remodeling purely to make living in your home more enjoyable, or to increase your home’s value for a sale or for the long-term, it’s important to know what kind of impact certain renovations can have financially and personally.
That is just what the National Association of Realtors, in conjunction with NARI – the National Association of the Remodeling Industry – outlines each year in their Remodeling Impact Report. This detailed study not only measures the impact remodeling can have on a home’s value, but also the impact it can have on the homeowners’ happiness.
As experienced home remodelers, we have surveyed our clients after each completed remodel on their personal satisfaction. We want to know what brings them the most joy about their completed project. Just as each client’s motivations to remodel are distinct, so too are the factors that bring them the most satisfaction and happiness when the work is complete. While our research is limited to the 50+ projects we complete each year, the National Association of Realtors, in conjunction with NARI, completed a nationwide study with extensive participation. More than 800 homeowners who had recently completed a remodeling project participated in the joy survey, and more than 4000 professional remodelers who are NARI members participated in the value survey.
Let’s start with the Joy Score!
According to the 2025 Remodeling Impact Report, the remodeling projects that brought the most joy to homeowners include a kitchen upgrade, which scored 10 out of 10 on the joy scale, and a full kitchen renovation, which scored 9.7 out of 10. A primary suite addition also scored a 10 out of 10 for bringing joy! Creating livable space in the basement was an 8.8 out of 10, and a bathroom renovation scored 9.8 out of 10. These projects were at the top of the list for how happy homeowners felt about their projects after completion.
The Cost Recovery Factor
To obtain the Cost and Value data reported in the survey, nearly 100,000 NARI members were contacted, and they received more than 4000 completed surveys. This data was used to calculate the median cost of common remodeling projects and the cost recovery value that each project adds. For instance, the installation of a new steel door would provide a 100% return on investment.
A few more projects that provide a good financial return on investment:
| Project Type | Return on Investment |
|---|---|
| A closet renovation | 83% |
| Remodeled basement | 71% |
| Attic converted to living space | 67% |
| Kitchen renovation | 60% |
| Primary bedroom suite addition | 56% |
| Bathroom renovation | 50% |
Not all the remodeling projects that bring the most joy also bring the most value. The new steel door, for example, brings 100% cost recovery but only 7 out of 10 on the joy scale.
One caveat that we would add to any remodeling value assessment would be that good remodeling is subjective in some ways, but not others. It’s true that not everyone has the same design sensibilities; however, if a project is way out of line from what most would consider good design, that could have a negative impact on a project’s value and the joy it brings to a homeowner.
Good remodeling construction, on the other hand, is not subjective. Experienced and trusted remodelers ensure the quality of construction materials and solid, established building techniques. A well-constructed project would have a positive impact on a project’s value in a significant way, both long-term and short-term.
For those of us who love home remodeling, we are always dreaming about, or planning for, our next project; whether it’s new laundry room design, a well-appointed kitchen, a primary suite addition, a show-stopping outdoor living space, or maybe a fun new basement entertaining area, we all have a few ideas we would like to turn into a reality. It’s fun to think about, but it’s also a good idea to understand the facts about investing in a remodeling project. When thinking about a home renovation, it’s smart to consider both types of ROI – the value it adds to your home, and the value it can add to your life.
To learn more about the National Association of Realtors and NARI Remodeling Impact Report, follow this link. You can see the full report here: https://www.nar.realtor/research-and-statistics/research-reports/remodeling-impact