Why Homeowners Are Remodeling Over Moving: The 2025 Market Report

While one my way back home from school drop off, I listened to NPR’s report on the market report. The latest U.S. Census Bureau and HUD data shows mixed signals for housing in July 2025. While single-family housing starts rose, building permits slipped, marking the weakest level since 2020. Elevated mortgage rates, continue to suppress housing turnover, even as some builders offer price cuts and incentives to lure buyers.

This slowdown in new home construction, combined with affordability pressure, is driving homeowners to invest instead in high‑ticket home remodeling, especially for kitchens. According to the Harvard Joint Center for Housing Studies, remodeling spending remains strong, way above pre‑pandemic levels, and homeowners “locked in place” are channeling dollars into improving their current homes.

While the news of a slowdown in Construction is disappointing and also expected, it actually made me analyze why people stopped buying homes but are opting for remodeling instead. Kitchens consistently deliver strong return on investment (ROI). A minor kitchen remodel—think updated cabinets, new countertops, and modern fixtures—recovers around 70–80% of the investment upon resale.

High interest rates are creating a “lock‑in effect”: with many homeowners holding low-rate mortgages, moving becomes less appealing. Instead, they improve current homes—particularly kitchens and baths—to boost equity and livability. The National Association of the Remodeling Industry (NARI) finds that 42% of contractors report increased demand, and 46% of realtors say buyers now demand better condition, with kitchens topping that list  .

1. Cabinet Upgrades Lead the Way
   Forecasts expect kitchen cabinet demand to grow annually.
2. Countertop Investments Are Smart Moves
   Investing in high-quality materials—like quartz, granite, quartzite and even engineered stones—continues to pay off across home markets and underpins remodeling ROI.
3. Remodeling Trends Reflect Value and Style
   According to Better Homes & Gardens, affordable upgrades like cabinet refacing, modern hardware, quartz countertops, and updated lighting deliver strong impact for the investment .

• Unlocking Value in Place: With limited buyers and rising inventory, homeowners are choosing remodeling over relocating.
• Strong Market Support: Overall remodeling spending remains elevated.
• Consumer Behavior Shift: Tight affordability and high mortgage rates encourage remodeling as a more feasible path to home enhancement.
• Industry Moves: Major retailers and builders offer incentives and financing to encourage remodeling even when big projects are delayed .

New home construction is cooling, but kitchen remodels remain robust. Homeowners are investing in high-ticket items like cabinets and countertops, enjoying strong returns and uplifted home enjoyment. With remodeling spending soaring, ROI demonstrating clear gains, and design trends emphasizing value and style, kitchens are where the market is thriving.