Home Renovation Trends and Tips 2025

Renovating your home can infuse familiar surroundings with new potential while improving your quality of life. A remodel can also help you benefit from the latest trends and innovations within the industry. According to our recent survey, almost 50% of homeowners plan to remodel in 2025. 

We analyzed data from the Joint Center for Housing Studies (JCHS) of Harvard University, the National Association of Realtors (NAR), and Angi to explore home renovation trends within the industry and among homeowners. Our survey also uncovered key insights regarding the most common spaces and projects homeowners plan to incorporate into their remodeling efforts. Our team consulted with industry experts to provide practical tips homeowners can use to streamline their renovations and maximize their return on investment.

How Much Are Homeowners Remodeling?

Homeowners spent $472 billion in home renovations in the third quarter of 2024, according to the Joint Center for Housing Studies (JCHS) of Harvard University. Compare this to the $487 billion spent in Q3 of 2023 and the estimated $477 billion homeowners are projected to spend in the third quarter of 2025. 

A soft housing market and weak sales of building materials have thus far hindered home renovation growth, but experts at the JCHS of Harvard University forecast steady growth as the aftermath of the pandemic begins to subside. You can see its model and forecast below.

Our survey of 2,000 homeowners revealed that nearly 50% of respondents plan to remodel in 2025. Of that majority, more than 80% plan to remodel in the spring and summer of 2025, with winter ranking as the least popular time to renovate. Our survey results also yielded the following insights: 

• Funds from a checking or savings account (66%), credit card (30%), or personal loan (17%) rank among the top three ways homeowners plan to pay for their remodels.
• The majority of all generations plan to use their checking and savings account balance to pay for renovations, including 68% of millennials, 67% of baby boomers, 65% of Gen Zers, and 62% of Generation X. 
• Improving the appearance of the living space (50%) and making repairs (49%) ranked among the top reasons for remodeling. 

Although all generations prioritized making repairs as part of their renovations, Gen Zers also wanted to make their spaces more comfortable. Millennials, baby boomers, and Generation X prioritized improving the appearance of their living spaces. 

What Is the Most Common Type of Home Renovation?

Our survey identified the bathroom (53%), kitchen (51%), and living area (37%) as the most common spaces respondents plan to remodel. Among generations, 47% of Generation Z planned to remodel their bedrooms, and 44% of millennials said their living areas. Generation X (33%) and baby boomers (23%) ranked an outside deck, porch, or patio as the third item on their renovation list. 

Flooring, cosmetic upgrades, and wallpaper/paint were the top three most common remodeling projects our respondents plan to take on in 2025. The chart below shows lighting and plumbing rank as the next most popular projects, with accessibility upgrades low on the priority list: 

Replacing the floor in a standard-sized living room can cost you $12.50 per square foot on average, or anywhere from $1,500–$4,800, according to Angi. The room size, flooring material and quality, and choice of labor factor into your final costs. Hire a professional contractor for major work involving the subfloor to avoid the headache of extensive repairs. Budget for renting a truck and the proper tools if you plan on doing the work yourself. 

A fresh coat of paint can go a long way in updating your home, and you can easily do the job on a budget. While the average cost of painting your home’s interior ranges from $2–$6 per square foot or an average of $2,000 per Angi, picking up a paintbrush yourself can reduce your costs to $200–$300 instead. Account for any wall repairs, priming, and site preparation before you break open the paint can. 

Recessed lighting costs an average of $180 or roughly $200–$250 per fixture if you hire an electrician. The average plumbing repair costs $336 on average but typically costs less than $500. In the case of lighting and plumbing, contracting with a professional can help your home remain compliant with building codes and permitting while providing a warranty for the components and installation. Your project will also benefit from their years of hands-on experience. 

Bathroom Remodel Cost

According to our survey, 55% of Generation X and baby boomers, 54% of millennials, and 49% of Gen Zers plan to remodel their bathrooms in 2025. The cost of remodeling a bathroom averages $12,100 but can range from $6,600–$17,600, according to Angi. This figure breaks down to approximately $70–$250 per square foot, but doing it yourself can reduce your final bathroom remodel costs to $3,000–$8,000. 

“Bathrooms can last about 15 years before feeling dated,” says Margaret Carneal, assistant professor of interior design at Radford University. A bathroom remodel can help you start and end your day in a room that supports healthy personal hygiene habits and improves your home’s value. If you want to remodel your bathroom, the cost data below can help you budget accordingly: 

• Cabinets and shelving (25%), shower and tub (22%), and the general contractor’s fee (13%) comprise the most significant costs associated with a bathroom remodel. 
• The average cost of cabinets ranges from $200–$600 per unit. 
• Remodeling a shower costs between $200–$15,000, and replacing the bathtub can cost you between $4,200–$11,000. 
• Hiring a professional to rough in the plumbing costs an average of $7,000. 
• Installing a sink averages $215–$625, while a new toilet costs $375 on average. 
• Budget 10%–20% of your overall remodeling costs for general contractor fees.

Remodeling your bathroom can be one of the more rewarding investments you’ve made, especially given how often you use it. “A home improvement project becomes worthwhile when it enhances your living environment and overall well-being,” says Lisa Sundahl Platt, assistant professor of interior design at the University of Florida. 

Kitchen Remodel Cost

A kitchen remodel was popular among 58% of Gen Z respondents, 54% of Millennials, and 47% each of Generation X and Baby Boomers, per our survey. “A well-designed kitchen can last for 25 years,” says Carneal. According to Angi, the cost of remodeling a kitchen ranges from $14,600–$41,500 and averages $27,000. Additional cost data shows the following: 

• Budget for anywhere from $75–$250 per square foot for the average kitchen remodel.
• Minor remodels—including cosmetic touches, installing a new sink, replacing a few appliances, and making a few cosmetic updates—can still set you back $10,000–$20,000. 
• Cabinetry (41%), flooring (18%), and countertops (14%) are the top three costs associated with remodeling a kitchen. 
• Appliances can range from $100–$5,000, depending on which appliance you’re replacing.
• Countertops range in price from $1,870–$4,400. 
• Replacing kitchen floors can cost you between $1,000–$4,000. 

Do your research before hiring a contractor, and determine where you can compromise when evaluating your kitchen remodel budget. A kitchen remodel represents a significant undertaking, especially if you plan on making major repairs. Use our ultimate kitchen remodeling guide to avoid getting burned and instead get the peace of mind that your money was well spent. 

Cost data in this section was sourced from Angi.

What Home Improvement Projects Have the Most ROI?

The top five home improvement projects with the most return on investment per the NAR include the following: 

• Hardwood floor refinish: 147% back
• New wood flooring: 118% back
• Garage door: 100% back
• Insulation upgrade: 100% back
• New roofing: 100% back

“Home improvement priorities may vary depending on location, life stage, and personal needs,” says Sundahl Platt, “Focus on targeted, intentional design changes that can make a significant impact.” Homeowners refinish their home’s hardwood floors for several reasons, including upgrading their space, adding new features, and improving livability, or when it’s time for a change. 

“Upgrades to HVAC and insulation, including managing fresh air and humidity, is an improvement that provides lots of value to owners,” says Mel Jones, associate director at the Virginia Center for Housing Research. Insulation upgrades—at an estimated 100% return—are a relatively minor investment your household can benefit from in the present and future. “Implementing energy-efficient home improvement projects will have both immediate and long-term savings,” says Carneal.

Although a new roof costs significantly more than a brand-new garage door, 33% of realtors recommend making the investment before listing the home for sale, according to the NAR. In addition, investing in a new garage door can provide greater curb appeal. “People undertaking a home renovation to sell may consider starting renovations in the year prior to prepare to get the full value out of their home,” says Jones.

How To Save on Your Home Renovation

Finding ways to save money on your house remodel can seem challenging at first glance, especially with more complex renovation projects. However, refreshing your home’s interior may not require as much work as you think. In some cases, adding a few accents or a fresh coat of paint can go a long way in sprucing up your space—and helping you get the most out of your investment. 

Admittedly, some home remodeling projects require more than an eye for interior design. Although it can be tempting to jump head-first into pricing materials and obtaining quotes from contractors, developing a strategic approach and realistic budget will ensure your remodel’s success from the start. “Take time to make a plan and prioritize,” says Jones.

Home remodels are notorious for going over budget, so factor in a 20% cushion to cover unexpected expenses. Evaluate your remodel plans to identify where you can do the work yourself and keep project costs down. If you need to complete major work to the house—such as altering the plumbing or electrical wiring—hire a professional. 

“Remember, whatever the cost of the materials is, the labor price is usually the same or more,” says Andrew Neumann, associate professor and program coordinator of the construction and architectural programs at Delta College.

If you plan to hire a contractor, try to schedule work during the off-season between January and early March, according to Realtor.com. “Vetting contractors well before a project begins will allow you to choose which company you like best or has the best price, versus being stuck with the only one available for your last-minute timeline,” says Neumann. Contract terms that correlate project progress to payment ensure timely completion. 

Homeowners can also save significantly by balancing aesthetics with affordable solutions. Choosing off-the-shelf items over custom solutions, seeking out discounted floor models, and shopping from recycling centers or building material auctions can help you manage remodel costs. However, homeowners should avoid the pitfall of opting for a more affordable solution when a higher-priced alternative may last longer. “It has been my experience that completing a project yourself to save money or to wait a little longer to save for top-quality products is absolutely well worth it,” says Neumann.

Expert Insights and Tips

Mel Jones

Associate Director, Virginia Center for Housing Research

Virginia Tech

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How do seasonal changes influence homeowners’ decisions to undertake renovation projects?

The housing market is very seasonal, with most people thinking about buying or selling a home in mid/late spring to early/mid-summer. People undertaking a home renovation to sell may consider starting renovations in the year prior to prepare to get the full value out of their home. Many folks also have seasonal maintenance schedules—making sure the gutters and other drainage, windows, roof, etc., are ready for seasonal weather like heavy rain.

How do people balance the cost and value of home improvements?

Maintenance needs to come first. Maintaining and repairing your home has to be prioritized over any other improvement because neglecting maintenance or a repair can lead to more costly repairs in the future. For example, a leak in the roof can decay the roof, insulation, mechanical units, walls, and other elements of the home. It’s important to maintain your home for three reasons: 1) to keep it safe (air quality, stability, fire prevention, etc.), 2) to maintain the value of your home, 3) to maintain the integrity of your community’s housing stock well into the future. In this country, we tend to keep homes around for a long time (50–100+ years), so homeowner after homeowner must keep the homes up in order for each community to have a good stock of high-quality housing units.

If you are taking on an upgrade project, there are lots of aspects to think about (quality of materials, craftmanship, what types of changes you are making, etc.). There are tradeoffs that can make a project less expensive, for instance, not redesigning plumbing and electrical, but rather making more cosmetic changes. The value of a project may also be realized in the shorter or longer term. Upgrading old appliances will likely have immediate energy savings. Upgrading insulation or mechanicals will also start to give a return immediately, though because they are a bigger investment, it will take longer to “pay off.” A kitchen or bathroom renovation may not provide “value” until the home sells AND you may need to do more than one renovation of the same bathroom or other space if you are a longtime homeowner (10+ years).

What improvement projects do you believe provide the most long-term value for homeowners?

Keeping your home in good condition with working gutters, roof in good repair, upgraded systems, and modern appliances are among the most important elements. Modernizing wiring is also important in older homes. Upgrades to HVAC and insulation, including managing fresh air and humidity, is an improvement that provides lots of value to owners.

What makes a home improvement project worth doing?

Improving the durability and degree to which your home can offer you safe, restful space has been proven to have value in terms of both monetary value and positive health outcomes.

When is the right time to invest in your home?

Investing in your home regularly to address maintenance issues or improve energy efficiency is an all-the-time job. Other types of investments are more for your own enjoyment or to maximize return in advance of selling.

Do you have any tips for homeowners embarking on a renovation project?

Take time to make a plan and prioritize. Find a good contractor you can trust.

Mel Jones is a research scientist and co-director of the Virginia Center for Housing Research at Virginia Tech. Mel leads housing studies and housing research in Virginia and across the country. Mel earned a BS in economics and a BA in international service from American University, as well as an MS in applied economics and a master of urban affairs and planning from Virginia Tech.

Edward Re

Registered Architect and Professor

Pratt Institute

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​​How do seasonal changes influence homeowners’ decisions to undertake renovation projects?

Seasonal changes normally affect only the smaller residential projects, like that of a new kitchen or bathroom remodel. For the most part, substantial home renovations last well through any particular season.

How do people balance the cost and value of home improvements?

When it comes to home improvements, I have noticed there are two types of homeowners: the homeowner that consciously thinks about whether or not the financial investment increases the value of the home, i.e., whether or not the improvement has a value synergistic effect, or the homeowner that does not care about the cost because they are much more interested in creating a new lifestyle.

What improvement projects do you believe provide the most long-term value for homeowners?

Long-term value comes in great part from inflation, not improvements. The highest financial yield in homeowner ownership is achieved through proper maintenance and long-term ownership.

What makes a home improvement project worth doing?

There are many home improvement projects worth doing, meaning projects that will yield an increase in home value greater than that of the cost. No project will yield a better return then cleaning, washing and painting. My grandmother used to say, “The true worth of a home can only be seen when it can be seen.”

When is the right time to invest in your home?

Now! Today! The advantages of owning a home are multi-fold. It has been proven that children who grow up in a home do better in life. I am not just talking financially but socially as well. Parents, whether a couple or single, often lack the willpower to save for their future. Owning a home forces the family to save through periodic mortgage payments. Equally as important, the home is an asset, and therefore absorbs the damaging economic impact of inflation.

Do you have any tips for homeowners embarking on a renovation project?

Years ago, there was a “Master of the Rolls,” the one who organizes the judges in England. His name was Lord Alfred Denning. He was praised by the people for being a very fair man and assembling one of the finest courts ever. When asked how he managed to do so, he said, “I looked for a gentleman in the true sense of the word and if he knew a little law, so much the better.” When it comes to finding a contractor, I suggest we learn from Lord Denning.

Professor Re has over 40 years’ experience in the construction and real estate industry. As a registered architect, professor at Pratt Institute, certified professional constructor, New York State qualified continuing education instructor, OSHA-approved site safety director, certified environmental inspector, and certified real estate appraiser, Edward Re has received numerous industry awards.

Andrew J. Neumann, Ed.D.

Associate Professor and Program Coordinator

Delta College

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How do seasonal changes influence homeowners’ decisions to undertake renovation projects?

In northern climates, temperature, hours of daylight, and frost laws restrictions make spring and summer the best time for renovation projects. In more temperate climates in the south, the cooler weather may be ideal in the fall or winter for renovation projects. Weather conditions aside, the best time for outdoor renovations would be summer and fall. Homeowners would get full use of their investment for the upcoming holiday and heating/cooling season.

How do people balance the cost and value of home improvements?

Many people balance the cost and value of home improvements based on vanity. For example, a family has a 25-year-old furnace or water heater that is still functioning. As these mechanical devices are very near the end of their lifetime and the efficiency levels are not up to par with present-day appliances, they are still chugging along. Most people will choose upgraded countertops rather than “bones and arteries” of their home. It has been my experience that completing a project yourself to save money or to wait a little longer to save for top-quality products is absolutely well worth it. The labor time/cost for installing inferior materials is often the same as if you were installing quality long-lasting materials.

What improvement projects do you believe provide the most long-term value for homeowners?

The best long-term value for homeowners is “bones and arteries” of the home. Meaning upgraded roof, furnace, air conditioner, insulation, plumbing, and electrical. These items do not get the “wow” effect from family and friends but will prevent an unexpected expensive major repair from occurring and causing an economic emergency or a costly insurance claim. A project completed due to an emergency is usually much more costly than if the same project was completed in a proactive planned program due to additional damage caused by leaks, drywall damage, etc. As Ben Franklin said, “An ounce of prevention is worth a pound of cure.”

What makes a home improvement project worth doing?

Functionality of the home should be the homeowner’s priority. Many industries, such as plumbing, heating, siding and electrical manufacturers, have created products that are much more DIY friendly. With the combination of YouTube videos and user-friendly products, many projects around the house can be accomplished by the homeowner, which honestly is the most rewarding and satisfying. Items such as LED replacement fixtures, pex tubing/connectors, and mini split heating/cooling equipment are game changers in home improvement. Remember, whatever the cost of the materials is, the labor price is usually the same or more. This creates an opportunity for “handy” homeowners to save a tremendous amount of money or the ability to upgrade to materials not in the budget if labor was included.

When is the right time to invest in your home?

Taking a proactive approach is best, by combining “necessary” improvements along with “decorative” improvements that give instant gratification is important. Taking on “fun” projects as well as the difficult projects keeps you and your team motivated and eager to do more. Most families get newer vehicles every few years. Maintaining your home is like getting oil changes and car washes for your vehicle. Not only does taking care of your house/car increase your pride, but it also makes the resale value much higher.

Do you have any tips for homeowners embarking on a renovation project?

The best tip for any homeowner is preparation. By planning well in advance, homeowners can get different options of design and material choices and fully research them. Once a product is chosen, hopefully you have allowed enough time to order materials with a long lead time so a project can proceed without costly and inconvenient delays. Vetting contractors well before a project begins will allow you to choose which company you like best or has the best price, versus being stuck with the only one available for your last-minute timeline. If the project is significant, hire an architect/designer. The money spent hiring an architect will save money, time, and mistakes in the long run.

Neumann is an associate professor and program coordinator of the construction and architectural programs at Delta College. In addition to this, he has been a Michigan-licensed builder, building inspector, plan reviewer, and building official for 25 years. He started as a carpenter apprentice and has been teaching construction for 30 years.

Margaret Carneal

Assistant Professor

Radford University

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How do people balance the cost and value of home improvements?

It’s always time or money, which do you have more of? If you don’t have the funds, then homeowners will invest their time in doable DIY projects. The value of these projects can range, of course. On the other hand, homeowners who have limited time or skills are more likely to seek contractors who can fulfill their goals. Of course, craftsmanship, work quality, and product selection impact perceived value of home improvement projects, which can affect the value of the project, no matter who performs the work. Naturally, when homeowners have neither time nor money, investments in home improvement pause.

What improvement projects do you believe provide the most long-term value for homeowners?

Implementing energy-efficient home improvement projects will have both immediate and long-term savings. Upgraded windows, water heaters, solar installation, and other projects have higher initial costs. However, installing these types of upgrades is perceived as valuable infrastructure to the home, which provides a lasting return on investments. Not having to embark on these larger investments can be mentally relieving for current and future homeowners. The second best projects to complete are kitchen and bath remodels, which have excellent near-term ROI and high use factors for homeowners. A well-designed kitchen can last for 25 years, and bathrooms can last about 15 years before feeling dated. Exterior facade and other curb appeal upgrades would be the third wave of upping the perceived value of the home and should be considered when those materials become due for upgrading (siding, roofs, painting, etc.). Landscaping takes time to cultivate and can be done in smaller project chunks that are phased over time.

When is the right time to invest in your home?

Ideally, earlier is a better option for the full enjoyment of your investment. This is especially true for energy-efficient upgrades like windows and heating systems. However, from a design perspective, it may take time for individuals and households to understand how they use the home and require living with the space for a year or two to target specific goals and outcomes of a remodel investment. If homeowners can afford the cost, completing those projects early during homeownership increases your return on investment and the enjoyment factor of living in the space. Homeowners should try to avoid the regret, “We should have done this years ago,” when waiting to remodel in an attempt to make the home sellable.

Margaret Carneal has been an assistant professor of interior design at Radford University since 2020, teaching both conceptual and technical courses at all college levels. Prior to that, she taught housing and residential design at Virginia Tech. Both her bachelor’s and master’s degrees in interior design are from Virginia Tech, and she has over twenty years of experience in academic and industry roles specializing in residential design and construction.

Lisa Sundahl Platt, Ph.D.

Assistant Professor

University of Florida

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What improvement projects do you believe provide the most long-term value for homeowners?

The places we call home can become hazardous if they fail to adapt to our changing needs and the dynamic environments around us. Creating genuinely safe and supportive living spaces requires incorporating principles of universal design and resilience. These approaches ensure our homes can effectively respond and adapt to anticipated and unforeseen human requirements and evolving environmental conditions. By embracing these design principles, we can create living environments that remain safe, comfortable, and functional throughout our various stages of life and changes to the environments surrounding our homes.

What makes a home improvement project worth doing?

A home improvement project becomes worthwhile when it enhances your living environment and overall well-being. By applying resilience thinking and evidence-based universal design practices, we can transform our homes into adaptive, health-promoting environments that support physical and mental health, adapt to changing needs, and promote environmental stewardship. These improvements are instrumental in creating sustainable, nurturing living environments that enhance our quality of life and contribute positively to the environment. This holistic approach ensures that investment in home improvement yields long-term benefits for you, your loved ones, and the planet.

When is the right time to invest in your home?

The best time to invest in your home is now. Research suggests that the quality of our living environments is a fundamental social determinant of health. By enhancing our living environments through safe, supportive, and sustainable design solutions, we simultaneously improve our property value and invest in our long-term well-being. Improvements to our homes that create safer, more comfortable, and more efficient living environments that adapt to our changing needs over time can significantly impact our immediate and long-term physical and mental well-being.

Do you have any tips for homeowners embarking on a renovation project?

When embarking on a home renovation project, people should consider prioritizing easily achievable, sustainable improvements that offer long-term benefits to their physical and mental well-being. Home improvement priorities may vary depending on location, life stage, and personal needs. Focus on targeted, intentional design changes that can make a significant impact. Complete remodeling may not be necessary to create meaningful improvements that enhance a home’s resilience. Before beginning a home renovation project, people should consider upgrades that accommodate their changing needs over time, such as installing level flooring that minimizes the risk of slipping, blocking in walls for future installation of bathroom grab bars, or improving lighting throughout the house. Always opt for environmentally sustainable materials to ensure optimal interior environmental quality and energy-efficient solutions to promote sustainability and reduce long-term costs. By focusing on these aspects, you can create a more resilient, comfortable, and health-promoting living environment without requiring extensive renovations.

Lisa Sundahl Platt is an assistant professor of interior design within the College of Design Construction and Planning at UF, studying the impact of built environment design on human health. Her research explores how the design of living environments contributes to our overall well-being through the concept of interior resilience. Sundahl Platt directs the Design Dynamics Lab at the Florida Institute for Built Environment Resilience (FIBER), where she and her team develop innovative strategies to address health hazards through human-centered design and intelligent building systems planning.

FAQ About Home Renovations

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