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10 Home Renovation Trends Every Homeowner Should Know About in 2025

Published: 
March 6, 2025
Last Updated: 
March 6, 2025
12 minutes to read

Have you ever caught yourself daydreaming about how you would change your space? You’re not alone. Spending on home remodeling is expected to increase for the first time since 2022, according to new data from the Joint Center for Housing Studies of Harvard University’s Leading Indicator of Remodeling Activity. Why? Because many Americans can’t afford to move. 

Whatever your reason for staying put, now is the time to make your home work for you with trendy remodeling ideas. Our tired living spaces are getting a fresh, modern spin from eco-friendly overhauls to cutting-edge basement conversions. These are the top 10 home renovation trends in 2025.

Modern home renovations are no longer solely about aesthetics. Homeowners now seek versatile, tech-forward, and eco-friendly spaces. Below are the key trends to consider when renovating or upgrading a house.

Sustainable & Eco-Friendly Renovations

A 2024 survey by the National Association of REALTORS® found that the housing market is on the brink of a “green revolution” as more homeowners search for sustainable homes that are comfortable and environmentally conscious. 

Sustainable home improvement trends focus on energy efficiency certifications, water conservation, and indoor health. Here are a few ways modern homeowners are prioritizing green upgrades:

  • Choosing reclaimed wood and recycled materials for cabinetry, flooring, and decorations
  • Opting for cleaner finishes, such as low-VOC (volatile organic compounds) paints to improve indoor air quality
  • Designing LEED-certified homes can reduce energy consumption by up to 30%. These homes are more efficient, healthier, safer, more comfortable, and have better indoor air quality. 
  • Conserving water with WaterSense-labeled products, better landscaping, and ENERGY STAR-certified products
  • Upgrading insulation in walls and ceilings ensures your home maintains a comfortable temperature year-round while reducing energy consumption.
  • Integrating renewable energy sources like solar panels. Residential solar panel interest is at an all-time high.

Smart Home Features

Embracing technology is no longer a luxury—it’s a cost-saving strategy. Homeowners in many states experienced double-digit increases in energy prices year over year. 

This price hike could explain the growing demand for better home efficiency and brilliant home features. This market is expected to grow more than 11% between 2024 and 2032. Smart thermostats alone can reduce energy consumption by about 10%. Your savings could be even higher when paired with innovative energy monitoring systems like smart water heaters or lighting control systems. 

Smart thermostats like Nest or Ecobee can learn your schedule to optimize heating and cooling, while automated lighting systems, such as Philips Hue, let you customize brightness and ambiance.

Amazon Alexa or Google Assistant brings convenience to a new level, letting you control almost everything in your home with simple voice commands.

Home Offices and Multi-Functional Spaces

U.S. Census data found that homes are smaller — and more expensive — than they were years ago, prompting homeowners to find creative ways to maximize every square inch of their homes. This year’s home remodels will focus on home offices and multifunctional spaces that double as guest rooms, workout zones, or creative retreats. 

Remote work will continue to rise in 2025, prompting homeowners to embrace customization that helps them create uniquely tailored spaces that fit their lifestyles. Modular furniture, built-in storage, and unique design elements are top priorities this year and beyond.

Warmer, Cozier Designs 

 2025 design trends are warmer and more prosperous. Nothing quite like transforming your home into a welcoming haven where every corner invites comfort and relaxation. Here are some interior remodel ideas to help you achieve that cozy atmosphere:

  • Earthy tones and soft neutrals that create an inviting backdrop
  • Plush throw pillows, cozy blankets, and soft rugs for added tactile warmth
  • Layered lighting with floor lamps, table lamps, and dimmable sconces
  • Oversized and cushioned furniture
  • Houseplants galore to infuse natural life and a sense of calm
  • Fireplace refreshes or statement art pieces that bring a room together 

Indoor-Outdoor Livings

One of the strongest home design trends is merging indoor and outdoor environments to create expansive, versatile living spaces. This trend is rooted in biophilic design, which connects interior spaces to nature. 

Incorporating indoor plants, living walls, natural light, and organic materials can improve air quality and well-being. This health-conscious home design trend also reduces stress and improves mood. Something as simple as incorporating plants into a living space boosts productivity by 15%.

To make the most of this home design renovation, incorporate large sliding doors or folding walls that bring the outdoors in by maximizing natural light and airflow. Outside, think about adding water features to your patio or backyard and refreshing your furniture with natural materials, like bamboo, terracotta, or weather-resistant linens.

Wellness-Centered Home Renovations

As wellness takes center stage in modern design trends, homeowners transform their spaces into personal sanctuaries that nurture body and mind. Minor refreshes, such as larger windows or skylights, can enhance natural light and provide several health benefits. 

Modern wellness renovations now also include:

  • Advanced air purification systems to reduce indoor pollutants
  • Circadian lighting that mimics natural daylight
  • Dedicated fitness areas for yoga or meditation
  • Salt therapy rooms for reducing stress, boosting your immune system, and improving your skin

Kitchen and Bathroom Modernizations

Today’s kitchens and bathrooms are transforming into sleek, high-tech spaces that blend functionality with contemporary design. While we expect to see many kitchen and bath upgrades in 2025, homeowners’ focus on these rooms will always be “on trend” because of the ROI. Minor kitchen remodels can recoup over 96% of the investment, while bathroom upgrades offer a 32% to 34% return on investment.

With that in mind, modernizing these spaces is a smart move. Trends include updating your kitchen with handleless cabinetry, soft-close features, and durable countertops like quartz or granite while integrating smart home automation systems. 

In the bathroom, modern fixtures, such as water-saving faucets and frameless glass shower enclosures, boost style and efficiency. Open layouts with floating vanities can create an airy, expansive feel.

Pet-Friendly Home Features

With pet ownership increasing yearly, homeowners are prepared to spend more to accommodate their furry companions. About 48% of pet owners prioritize their pet’s comfort when taking on home renovation projects. Here are some top home renovation trends that focus on pets:

  • Easy-to-clean surfaces like tile or luxury vinyl that stand up to wear and tear
  • Built-in food and sleeping niches in the kitchen or mudroom
  • Sensor-activated pet doors with programmable locking mechanisms
  • Pet washing stations and pet-safe landscaping
  • Pet cameras or innovative collar systems that integrate with your home automation setup

Luxury Basement and Attic Conversions

Multi-purpose spaces add significant value to homes. Now, homeowners are focusing their renovations on basements and attics, transforming them from dark dungeons to luxury hangouts with wet bars, home entertainment systems, and aesthetically pleasing storage rooms.

These conversions are in sync with the growing trend of ADU (Accessory Dwelling Unit) conversions. Studies indicate that well-executed ADU conversions can boost home values 20% to 30%, making them an attractive option for homeowners seeking flexible, high-return investments. Beyond monetary value, these spaces help homeowners satisfy their growing preference for multigenerational living

Laundry and Mudroom Upgrades

And finally, laundry and mudroom upgrades can transform these often-overlooked spaces into efficient and stylish hubs that simplify your daily routine. Here are home improvement trends for the laundry and mudroom:

  • Stackable washer and dryer units to maximize space
  • Custom built-in storage with bench seating, cubbies, and hooks to reduce clutter
  • Durable and moisture-resistant flooring like tile or luxury vinyl
  • Bright LED lighting and enhanced ventilation

Bottom Line

Two thousand twenty-five home renovation trends focus on sustainability, innovative technology, and stylish designs that cater to every lifestyle. Whether you’re reimagining your kitchen or exploring interior remodel ideas, these ideas make enhancing your home’s comfort more straightforward than ever.

About Author
Casey Morgan
Written by Casey Morgan
Home Loan Expert
Casey Morgan, Home Loan Expert at Renovate.com, has over 10 years of experience in lending, specializing in home equity and renovation loans. Having lived in eight states, he provides expert guidance on all aspects of home financing.

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