Thinking of giving your kitchen a facelift or finally converting that awkward nook into a dreamy home office? You’re not alone—and you might already be sitting on the cash to do it.
According to the 2025 Remodeling Impact Report from the National Association of Realtors, 54% of homeowners used a home equity loan or line of credit (HELOC) to fund their latest remodel.
Yep—more than half of recent renovators didn’t drain their savings or max out credit cards. They tapped into the value of the home they already live in.
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Why are so many homeowners renovating right now?
If you’re a millennial homeowner, odds are high you bought a home that needed a little love. Between bidding wars, tight inventory, and rising prices, many buyers compromised on layout, finishes—or, let’s be honest, vibes.
But here’s the twist: rather than upgrading to a new place, more homeowners are remodeling what they’ve got.
According to the report, the top reasons people renovate include:
- 27%: Upgrading worn-out surfaces, finishes, or materials
- 19%: Improving energy efficiency
- 18%: It was just time for a change
- 18%: Preparing to sell in the next two years
Sound familiar?
Whether you’re itching to ditch those outdated cabinets or make your home more eco-friendly, remodeling gives you control without the stress of moving—and potentially increases your home’s value in the process.
What home remodels actually pay off?
Let’s talk return on investment (ROI). According to the report, here are the top projects with the best cost recoverywhen it’s time to sell:
- New steel front door – 100% ROI
- Closet renovation – 83%
- New fiberglass front door – 80%
- New vinyl windows – 74%
- Bathroom renovation – 71%
- Complete kitchen renovation – 60%
So yes, swapping your front door may be the most boring flex ever—but it’s also one of the smartest. And if you’ve been dreaming of a Pinterest-worthy bathroom or kitchen? You’re in good company—and it’s worth the investment.
Joy Score 10: These renovations are total mood boosters
So what kind of remodel actually sparks joy? The Remodeling Impact Report ranked projects by something called a “Joy Score”—a feel-good measure based on how happy people felt after their renovation.
Only three projects scored a perfect 10 out of 10:
- Adding a primary bedroom suite: Think spacious layouts, en suite bathrooms, and maybe even a cozy sitting area that makes you feel like you’re in a boutique hotel every night.
- Upgrading the kitchen: New countertops, better lighting, and layout changes that make you actually want to cook.
- Installing a new roof: Not the sexiest reno, but nothing kills house stress faster than knowing you’re protected from the elements—no leaks, no drafts, no mystery stains on the ceiling.
Other high scorers included bathroom renovations, complete kitchen overhauls, and fresh interior paint—proving that a little facelift can make a big emotional difference.
So whether you want a place to unwind, entertain, or just function better day-to-day, these projects don’t just boost resale—they can actually make you fall in love with your house again.
Don’t have the cash? Your home might help
Here’s where it gets interesting. With home values still high in many markets, you might have thousands in equity just sitting there, waiting to be used for something that improves your daily life and adds value.
Whether it’s a HELOC, cash-out refinance, or renovation loan, there are plenty of ways to fund your project without stressing your budget.
The bottom line
Remodeling isn’t just for the HGTV crowd—it’s smart, satisfying, and (thanks to home equity) more doable than ever. If you’re ready to finally build the home you wanted when you bought it, now’s a great time to start planning.
And remember: your dream home might already be the one you live in. It just needs a little help.
Written by: Aleksandra Kadzielawski