What the 2025 Remodeling Impact Report Means for Chicago Homeowners

Every year, the National Association of REALTORS® (NAR) and the National Association of the Remodeling Industry (NARI) join forces to publish one of the most data-rich documents in the home improvement space, the Remodeling Impact Report. The 2025 edition draws on surveys of over 800 homeowners, 177 NARI member companies, and more than 4,000 real estate professionals to answer a question every Chicago homeowner eventually asks. Which renovations are actually worth it?

The short answer is more of them than you might expect. Americans spent an estimated $603 billion on remodeling in 2024, and 46% of home buyers today are less willing to compromise on a home’s condition than they were just a few years ago. That shift in buyer expectations has real consequences for homeowners who are thinking about selling, refinancing, or simply investing in the quality of their daily lives.

At Areté, our designers and project managers work with homeowners across Lincoln Park, Gold Coast, Lakeview, and beyond to turn those national insights into locally grounded renovation decisions. Read on to see what the data says and how it applies to your Chicago home.

The Chicago Housing Market Makes Remodeling a Smart Play

Chicago’s housing market remains competitive. According to Redfin, the median sale price of a Chicago home recently sat at $355,000, up 1.4% year over year. Inventory is tight, and buyers are discerning. Homes that show well and feel move-in ready attract more serious offers.

That context matters when evaluating any renovation. Remodeling Done Right, which is NARI’s guiding principle, is not just a tagline. It reflects a straightforward reality. A well-executed project by a qualified professional adds measurable value, both at resale and in how you experience your home every single day.

With that foundation in place, here’s what the 2025 report highlights for the projects that matter most.

Top Interior Projects Kitchens and Hardwood Flooring

Kitchen Upgrades

The kitchen continues to lead the conversation. According to the 2025 Remodeling Impact Report, kitchen upgrades earned a perfect Joy Score of 10 out of 10. It was one of only three projects to achieve that distinction. REALTORS® also ranked kitchen upgrades among the top projects they’ve seen increased buyer demand for over the past two years.

What drives that score? A well-designed kitchen delivers something that’s hard to put a number on because it changes how you live. Families gather there. Guests linger there. When the layout works, the storage is thoughtful, and the finishes reflect your personal style, the kitchen stops being a room you manage and becomes a room you actually enjoy.

At Areté, our kitchen remodels are designed from both angles. Our designers will walk you through maximizing your daily experience and protecting your investment at resale. From custom cabinetry and high-performance appliances to open-concept layouts tailored to Chicago’s distinctive home structures, every detail is considered.

Hardwood Flooring

Hardwood flooring consistently ranks as one of the most appealing features for home buyers, and realtors regularly cite it as an upgrade that positively influences purchasing decisions. New or refinished hardwood floors create a visual cohesion across a home that few other projects can match. They photograph well, they wear gracefully over time, and they signal the kind of quality that buyers notice the moment they walk through the door.

For Chicago homeowners, hardwood flooring is especially well-suited to the classic architectural character of older homes in Lincoln Park and Lakeview. Original wood floors can often be restored to remarkable condition or replaced with a premium alternative that complements the space.

Exterior Renovations Roofing and Garage Doors

It’s easy to focus renovation budgets on the spaces you live in most. But the 2025 Remodeling Impact Report makes a compelling case for the exterior.

New Roofing

New roofing earned a perfect Joy Score of 10, the same as a kitchen upgrade. Realtors ranked it among the top projects they recommend to sellers preparing to list. It’s also one of the top remodeled areas buyers have actively sought out in recent years.

That combination of high joy and strong buyer demand tells an important story. A new roof isn’t glamorous, but its absence is immediately felt. For Chicago homeowners dealing with aging infrastructure or weather-related wear, addressing the roof proactively eliminates a major inspection concern and significantly strengthens curb appeal.

Garage Doors

The 2025 report consistently highlights garage door replacement as one of the strongest cost-recovery projects available. The upgrade is relatively contained in scope, but its visual impact on a home’s exterior is disproportionately large. A new garage door modernizes the entire front elevation. This is especially valuable in Chicago neighborhoods where street presence carries real weight.

For homeowners in Gold Coast or Lincoln Park townhomes, where the garage is often front and center, this is an upgrade worth serious consideration.

The Joy Factor Returns That Go Beyond the Balance Sheet

One of the most meaningful findings in the 2025 Remodeling Impact Report isn’t about dollars at all. After completing a remodeling project, homeowners reported the following.

• 64% of homeowners reported a greater desire to be in their home
• 46% experienced increased enjoyment in their home
• 55% felt a major sense of accomplishment
• 92% said they would remodel more areas if cost were not a factor

The report’s Joy Score methodology is calculated by combining the percentage of homeowners who felt happy or satisfied with their completed project. It captures something that cost-recovery percentages simply cannot. Remodeling changes how you feel about your home. For homeowners who spend significant time in their spaces and take genuine pride in where they live, that emotional return is often just as valuable as the financial one.

Choosing the Right Partner – Why NARI Certification Matters

The 2025 report is built, in part, on data from NARI member companies. That’s not incidental. NARI contractors are held to the industry’s strictest code of ethics, and their sales performance reflects it. NARI members’ annual sales run nearly three times the industry average. Homeowners can search for NARI-certified professionals in their area at remodelingdoneright.com.

For Chicago homeowners, working with a qualified, experienced firm is not just a preference. Projects handled by professionals who understand local permitting, neighborhood architecture, and high-end finishes are far more likely to come in on time, on budget, and at the quality level that actually moves the needle at resale.

Areté’s team brings over two decades of experience to renovations across Chicago’s most prestigious neighborhoods. As a full-service design-build firm, we manage every stage of your project from initial design and permitting through construction and final walkthrough. It all happens under one roof, with one dedicated point of contact.

Make Your Next Renovation Count with Areté

The 2025 Remodeling Impact Report confirms what experienced Chicago renovators have long known. The right project, done well, pays dividends that go far beyond the transaction. A perfect-scoring kitchen creates a home you want to come back to. A new roof removes a major liability before it becomes a problem. Properly installed hardwood floors elevate every room they touch.

The question for most homeowners isn’t whether to renovate. It’s where to start and who to trust with the work.

Our team at Areté is ready to help you prioritize the projects that will deliver the most value for your specific home, neighborhood, and lifestyle. Call us at 773.683.3033 or contact us to start the conversation with our design-build team.