Remodeling ROI in 2025: What the Data Says About Investing in Your Home Now
2025 isn’t exactly the easiest year to make big decisions about your home. Interest rates are up. Inventory is tight. And moving? That feels more like a last resort than a fresh start. So here’s the question: Is it smarter to remodel the home you’re in rather than hunt for a new one?
Many homeowners are saying yes, and the numbers are backing them up. Whether you're thinking about a new kitchen, updating the bathroom, or even tackling a whole-home renovation, remodeling in 2025 is still worth it.
What’s Driving the Remodeling Boom in 2025?
A lot of folks are staying put these days. Not because they have to, but because making your current home work better just makes sense. Instead of competing in a tough real estate market, homeowners are customizing their spaces to fit their lifestyle. That means rethinking layouts, upgrading outdated features, and adding more usable space.
Remodeling is no longer just about selling someday. It’s about living better right now.
Remodeling ROI at a Glance. What the 2025 Data Shows
Let’s talk numbers. According to the latest Cost vs. Value Report, homeowners are still seeing strong returns on remodeling projects. On average:
· Minor kitchen remodels return around 80 to 90 percent of their cost
· Bathroom renovations can bring in 60 to 70 percent ROI
· Deck additions and outdoor upgrades are also climbing in value, especially in areas where outdoor living is a big part of daily life
Whole-home remodeling? While it’s a bigger investment, it can boost your home’s value dramatically, especially when the improvements modernize function and efficiency.
But here’s the thing. ROI isn’t just about resale. It's also about comfort, function, and making your home truly yours.
Kitchen Remodeling. Still One of the Smartest Investments
Kitchens sell homes. But even if you’re not selling, an updated kitchen makes life a whole lot easier. In 2025, more families are opting for open layouts, energy-saving appliances, and smarter storage solutions.
A midrange kitchen remodel can recoup up to 85 percent of its cost. Homeowners love clean finishes, better flow, and custom cabinetry that works with how they cook, gather, and entertain.
Want to boost ROI even more? Keep the footprint, but update surfaces, lighting, and hardware. The visual impact alone can feel like a brand-new space.
Bathroom Remodeling. Small Space, Big Returns
Bathrooms may be one of the smallest rooms in your home, but they pack a big punch in both daily use and resale value. From new tile and fixtures to better lighting and walk-in showers, bathroom remodels continue to deliver strong returns, especially when accessibility or comfort are priorities.
A typical homeowner can expect to recoup 60 to 70 percent of their investment. If your bathroom still has a tub from the 90s or storage that doesn’t cut it, a remodel might be the most practical decision you’ll make this year.
Whole Home Remodeling. More Upfront, Bigger Payoff Long-Term
Sometimes, small fixes won’t do. Maybe your home’s layout no longer works, or you’ve outgrown the space entirely. In that case, a full-home remodel could be the way to go.
While this type of project comes with a larger price tag, it also delivers the greatest transformation. Modernizing your systems, updating every room, and improving flow can make your home feel brand new without having to move.
Whole-home remodels often improve energy efficiency, resale value, and overall livability. It’s an investment that pays off every single day you stay.
Outdoor Living Renovations. Bringing the Inside Out
Backyards have changed a lot in recent years. Now, they’re outdoor living rooms, dining areas, even offices. And homeowners are investing in that extra square footage.
Adding a deck, covered patio, or outdoor kitchen not only extends how you use your home, it also raises your property’s value. Outdoor renovations can recoup 60 to 80 percent of their cost depending on materials and design.
Plus, they offer something that’s hard to put a price on. More time outside, more space to gather, and more reasons to enjoy your home.
Custom Home Building. Where ROI Meets Personalization
For some, remodeling isn't enough. That’s where custom home building comes in. While it’s a different path, the long-term value can be just as strong, especially if you’re building on your own land or in a growing market.
Custom homes give you control over every detail. From layout to finishes to future-proofing, it’s all built to suit your life. In 2025, energy-efficient design and smart construction are becoming the standard.
While ROI for new builds varies by region, the biggest benefit is getting exactly what you want without having to compromise or retrofit an older home.
How to Get the Best ROI. No Matter the Project
No matter which remodeling route you take, there are a few key ways to protect your investment:
· Work with a trusted design-build firm to avoid costly surprises
· Avoid over-customizing beyond what your neighborhood supports
· Focus on quality, not just trends. Timeless updates hold value better
· Think long-term. Ask yourself how the space will serve you five or ten years from now
A well-thought-out project with smart planning delivers better ROI every time.
Why Remodeling with Powers Design & Build Is Worth It in 2025
The numbers are clear. Remodeling in 2025 still makes sense, and it’s about more than just resale. Whether you want to enjoy a new kitchen, modernize your bathroom, expand your outdoor space, or build something entirely from scratch, the key is doing it right.
That’s where Powers Design & Build comes in. Our team brings the experience, creativity, and professionalism needed to guide your project from idea to completion. We specialize in whole home remodeling, kitchens, bathrooms, outdoor living, and custom home builds. Every design starts with your lifestyle in mind and ends with a space that truly fits how you live.
If you’re ready to invest in your home, let’s make it worth every penny. Contact Powers Design & Build today and let’s talk about what’s possible.
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