Why Beverly Hills & Los Angeles Homeowners Are Investing in High-ROI Renovations: The 2025 Remodeling Trends You Need to Know
️ "Why Beverly Hills Homeowners Are Investing in High-ROI Renovations: The 2025 Remodeling Trends You Need to Know"
In today’s luxury real estate market—particularly here in Beverly Hills and Los Angeles, where style, design, and functionality drive buyer decisions—understanding the real value of remodeling is more important than ever. The newly released 2025 Remodeling Impact Report from the National Association of Realtors® (NAR) and the National Association of the Remodeling Industry (NARI) is a goldmine of insight for homeowners who want to increase the emotional satisfaction of their space while maximizing potential resale value.
As a real estate professional with 36+ years of experience in the ultra-high-end Westside LA market, I’ve walked through countless homes where just a few strategic updates—like a refreshed kitchen or upgraded primary suite—significantly increased buyer interest and final sale price. This report is especially valuable because it bridges the gap between what feels good for homeowners and what actually adds market value—which can be a crucial distinction when preparing a home for sale in a highly competitive market like Bel Air, Holmby Hills, or Brentwood.
Key Findings from the 2025 Remodeling Impact Report:
WASHINGTON (April 9, 2025) – Top remodeling projects for homeowner satisfaction and cost recovery continue to vary as individuals remodel their homes for diverse reasons, according to the National Association of Realtors® and National Association of the Remodeling Industry's 2025 Remodeling Impact Report.
The report assesses the reasons homeowners undertake remodeling projects, the outcomes of these projects and the increased happiness experienced in the home once a project is completed. This year's report features a significantly different structure compared to prior editions, with expanded sections about Realtors® and consumers.
Americans spent an estimated $603 billion on home remodeling projects in 2024.
According to the report, the remodeling projects that received the highest Joy Scores – a ranking from 1 to 10 based on the happiness homeowners reported upon completion – include:
Addition of a primary bedroom suite (10)
A kitchen upgrade (10)
New roofing (10)
Meanwhile, the remodeling projects with the highest cost recovery, according to NARI members, were:
A new steel front door (100%)
Closet renovation (83%)
New fiberglass front door (80%)
“While homeowners take pride in seeing their personal tastes and design choices come to life, Realtors® may recommend different strategies to enhance the property’s resale value,” said Jessica Lautz, NAR deputy chief economist.
What Real Estate Pros Are Recommending
Realtors® most often recommend the following projects before listing a home:
Painting the entire home (50%)
Painting a single interior room (41%)
Installing new roofing (37%)
The remodeling projects Realtors® see in highest demand:
Kitchen upgrades (48%)
New roofing (43%)
Bathroom renovations (35%)
Why Homeowners Remodel
Homeowners cited the following top motivations for remodeling:
Upgrading worn-out finishes (27%)
Improving energy efficiency (19%)
Desiring a fresh aesthetic (18%)
Preparing to sell within two years (18%)
Interestingly, while housing affordability and high mortgage rates are hot topics, only 9% said that affordability was a driving factor in remodeling. Instead, home equity continues to be the financial engine behind these upgrades, with 54% of homeowners funding projects via home equity loans or HELOCs, and 29% using savings.
✨ The Emotional Payoff
Homeowners overwhelmingly reported improved lifestyle benefits:
64% said they had a greater desire to be at home
46% said they now enjoy their home more
92% would remodel more if cost weren’t an issue
Bottom Line: Remodeling With Strategy = Lifestyle + ROI
If you’re considering upgrading your home—whether to better enjoy it or prepare it for sale—this report provides a powerful framework to guide your decisions. In neighborhoods like Beverly Hills, where architectural excellence and interior detailing play a pivotal role in achieving top-dollar offers, the right renovation can make a meaningful difference.
If you'd like a custom analysis of which projects will bring the most value to your property, I’m happy to offer a walkthrough consultation and connect you with elite, vetted local contractors. Let’s discuss your home’s full potential—whether you're staying for years or planning to list this year.
Let’s elevate your home—and its value. Reach out today for a private consultation.