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Return-on-Investment

What the 2025 Cost vs. Value Report Really Says About Remodeling

Every year, the 2025 Cost vs. Value Report from Zonda, in collaboration with JLC (Journal of Light Construction) and Remodeling Magazine, offers a snapshot of how popular home improvement projects…

Written by

Tara Barry

Published on

November 11, 2025
Cost vs Value

Every year, the 2025 Cost vs. Value Report from Zonda, in collaboration with JLC (Journal of Light Construction) and Remodeling Magazine, offers a snapshot of how popular home improvement projects are performing nationwide. The 2025 edition confirms what we see every day in Montgomery and Bucks Counties: smart, high-quality renovations consistently deliver returns — not just when you sell, but every single day you live in your home.

This year’s findings highlight a growing trend among homeowners. Rather than chasing short-term ROI, people are investing in long-term comfort, efficiency, and joy. They want spaces that simplify life, feel good to be in, and stand the test of time.

At Custom Craft, we call that real value — and here’s what the data tells us about where homeowners are getting it.

Kitchen Renovations: The Heart of Your Home

Eagleville Kitchen

The kitchen remains one of the smartest places to invest. This year’s data shows that homeowners can expect to recover a significant portion of their costs, depending on project scope:

  • Minor kitchen remodel (midrange): 107.2 % ROI
  • Major kitchen remodel (midrange): 49.0 % ROI
  • Major kitchen remodel (upscale): 34.9 % ROI

Precise, well-planned updates tend to recoup the most cost, but every level of kitchen remodel offers something more important — better flow, improved efficiency, and a space that finally works for your household’s rhythm and routines.

We’ve seen homeowners fall back in love with cooking and entertaining simply because their kitchen now supports their lifestyle. When a room that once felt stressful becomes one you love spending time in, that’s a return that can’t be measured in percentages.

Bathroom Remodels: Elevating Daily Routines

Bathrooms continue to perform strongly in this year’s report, with consistently high returns across three key categories:

  • Bathroom remodel (midrange): 79.9 % ROI
  • Bathroom remodel (Universal Design): 64.1 % ROI
  • Bathroom remodel (upscale): 42.2 % ROI

Behind those figures is how homeowners today want spaces that combine beauty, function, and longevity. The strong showing for Universal Design bathrooms, which incorporate subtle accessibility and safety features, highlights a growing focus on future-ready design.

Across Montgomery and Bucks Counties, we’re seeing more homeowners choose zero-threshold showers, comfort-height fixtures, and better lighting, all integrated seamlessly into sophisticated, spa-like designs. These details make daily routines easier today and ensure the space remains comfortable and usable for years to come.

We often say that a great bathroom should feel as good as it functions — a small but mighty upgrade that turns everyday moments into something restorative.

Additions and Basements: Spaces That Grow With You

North Wales Basement

When it comes to adding usable square footage, the 2025 report shows steady long-term value for both additions and finished lower levels:

  • Primary suite addition (midrange): 27.1 % ROI
  • Primary suite addition (upscale): 15.9 % ROI
  • Basement remodel: 63.4 % ROI

The payoff on these spaces is deeply personal. Finished basements provide flexible spaces for work, exercise, and entertainment. Primary suite additions create peaceful retreats that enhance privacy and comfort.

The key is designing additions that feel integrated with the rest of your home, so they look like they’ve always belonged there. That’s where thoughtful design and craftsmanship make all the difference.

Whole Home Renovations: Comprehensive Transformation

Plymouth Meeting Home Office

While the report doesn’t track whole-home renovations specifically, our experience shows they offer the greatest long-term value — combining multiple high-performing categories into one cohesive transformation. They allow homeowners to solve multiple challenges at once (like outdated layouts, uneven lighting, aging systems, and more) and create a unified design that feels intentional from room to room.

This holistic approach brings big benefits:

  • Structural improvements that increase efficiency and reliability
  • Consistent design details for a seamless aesthetic
  • Better traffic flow and natural light throughout
  • Storage and function optimized across the entire floor plan

Instead of living with a patchwork of updates, homeowners gain a cohesive environment that reflects how they actually live today. That kind of transformation builds not only equity, but confidence and contentment every time you walk through the door.

Smaller Projects Still Make a Statement

Even the most modest upgrades can make a measurable difference. The 2025 report shows exterior projects continuing to deliver exceptional resale payback:

  • Garage door replacement: 336.6 % ROI
  • Steel entry door replacement: 219.8 % ROI
  • Manufactured stone veneer: 200.7 % ROI
  • Fiber-cement siding: 99.3 % ROI

These smaller-scale projects are cost-effective ways to refresh curb appeal and make a strong first impression when selling a home.

But for homeowners planning to stay, interior remodels and additions continue to provide deeper, longer-lasting value — turning a house into a home that feels perfectly suited to your family and your future.

The Takeaway: Redefining “Return on Investment”

The 2025 Cost vs. Value Report provides valuable benchmarks, but the truest measure of a remodel isn’t a resale percentage — it’s how much better your home serves you afterward.

When design, craftsmanship, and functionality align, the return goes far beyond numbers. It’s found in smoother mornings, easier gatherings, and pride in a home that finally feels like you.

That’s the kind of value we focus on at Custom Craft. Because when a renovation improves the way you live and strengthens your home’s worth, that’s not just good ROI — that’s good living.

Ready to explore how a renovation could transform your living spaces? Contact us to start the conversation.

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