Americans spent an estimated $603 billion on home remodeling projects in 2024, according to new data from the National Association of Realtors (NAR).
The top remodeling projects that realtors recommended to sellers before listing their homes included painting the entire home (50%), painting a single interior room (41%) and installing new roofing (37%). NAR found the primary reasons given by homeowners for renovations were the upgrading of worn-out surfaces, finishes and materials (27%), improving energy efficiency (19%), desiring a change (18%), and preparing to sell within the next two years (18%).
Most consumers (89%) reported housing affordability was not a deciding factor in their decisions to remodel, although 9% of consumers said housing affordability was a motivating factor for undertaking remodeling projects. To finance their remodeling projects, consumers primarily relied on home equity loans or lines of credit (54%), savings (29%) and credit cards (10%).
“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 Jessica Lautz, NAR deputy chief economist and vice president of research. “While homeowners take pride in seeing their personal tastes and design choices come to life, realtors may recommend different strategies to enhance the property’s resale value.”
