Average Home Improvement Costs and Spending Trends
U.S. homeowners planned to spend an average of about $14,000 on home improvement projects in 2025, according to the latest National Association of Realtors Remodeling Impact Report and related industry surveys. Interior projects such as minor kitchen remodels, bathroom upgrades, and garage door replacements consistently rank among the most common expenditures. The report shows that the average cost of a minor kitchen remodel is around $25,000, while a bathroom remodel averages about $12,000, with variation based on room size, materials, and region. Many homeowners also allocate funds to exterior improvements, including roofing, siding, and window replacements, which can affect both curb appeal and energy efficiency. For broader context on U.S. housing and construction spending trends, see the latest data from the U.S. Census Bureau and Department of Commerce at https://www.census.gov/construction/nrc/index.html.
Contractor fees, permits, and material prices are the main drivers of total project cost. The 2025 survey data indicates that labor costs account for roughly 40 to 50 percent of a typical project budget, while materials make up the remainder. Regional differences are significant, with projects in major metropolitan areas often costing 20 to 30 percent more than in rural areas. Homeowners who obtain multiple bids and use transparent pricing tools report better cost control and fewer change orders. The report also notes that projects with clear scopes and pre-approved designs tend to finish closer to the initial estimate.
Highest and Lowest ROI Projects
According to the 2025 Remodeling Impact Report, the projects with the highest expected return on investment at resale include minor kitchen remodels, garage door replacements, and steel entry door replacements. Minor kitchen remodels recoup an estimated 70 to 80 percent of the cost, while garage door replacements often return more than 90 percent. These projects are popular because they improve daily function and curb appeal without requiring major structural changes. The report ranks projects by recoup rate, which is the percentage of the project cost recovered at the time of sale, based on national survey data from real estate professionals.
Projects with lower ROI include upscale master suite additions, sunroom additions, and high-end landscaping. These improvements can increase livability but may not fully recover their cost in the resale market. The report emphasizes that ROI varies by region, home value, and buyer demand, and that some upgrades are driven more by personal enjoyment than by resale value. For additional analysis of housing market trends and resale data, see the latest reports from the National Association of Realtors at https://www.nar.realtor/research-and-statistics/reports-and-studies/remodeling-impact-report.
Planning and Executing Home Improvement Projects
Successful projects start with a clear scope, realistic budget, and a timeline that accounts for permits and inspections. The 2025 survey shows that homeowners who define project goals in writing and share them with contractors experience fewer delays and change orders. Key steps include obtaining at least three detailed bids, verifying contractor licenses and insurance, and using written contracts that outline payment schedules and milestones. Many homeowners also use online project management tools and digital communication to track progress and document changes.
Permitting requirements vary by municipality, and skipping this step can lead to fines, delays, and issues with future sales. The report notes that projects involving structural changes, electrical work, or plumbing typically require permits and inspections. Homeowners can check local building department websites or use third-party services that help identify required permits and fees. For guidance on contractor verification and consumer protection, see the U.S. Federal Trade Commission resources at https://www.ftc.gov/news-events/topics/consumer-safety/building-and-construction.