Are Custom Closets Worth the Investment? What the National Association of REALTORS® Says
Closet Renovations Rank #2 in ROI for Remodeling Projects
When homeowners think about remodeling projects that add value, kitchens and bathrooms usually come to mind first. But according to the latest research from the National Association of REALTORS® (NAR) and the National Association of the Remodeling Industry (NARI), one of the smartest investments is often hiding behind a bedroom door.
The 2025 Remodeling Impact Report ranked closet renovations as the second-highest remodeling project for cost recovery, with homeowners recouping an estimated 83% of their investment when they sell. Only replacing a steel front door ranked higher.
For homeowners throughout Morris County and Northern New Jersey, that's welcome news. A custom closet isn't simply an organizational upgrade, it's an improvement that can enhance your everyday life while adding lasting value to your home.
Closet Renovations Outperform Many Popular Remodeling Projects
Many homeowners assume a kitchen or bathroom remodel offers the best return. While those projects remain valuable, the latest NAR research paints a different picture when it comes to cost recovery.
According to the report:
Steel front door replacement: 100%
Closet renovation: 83%
Fiberglass front door: 80%
New vinyl windows: 74%
Wood windows: 71%
Basement conversion: 71%
Complete kitchen renovation: 60%
Minor kitchen upgrade: 60%
Bathroom addition: 56%
New primary suite: 54%
Bathroom renovation: 50%
While no remodeling project guarantees a specific increase in home value, these findings suggest that custom storage is one of the most financially sensible upgrades homeowners can make.
Source: 2025 NAR/NARI Remodeling Impact Report.
Why Do Closets Deliver Such Strong Value?
Today's buyers expect organized, functional storage.
A thoughtfully designed custom closet helps homeowners:
Maximize usable storage space
Keep clothing and accessories organized
Reduce clutter throughout the home
Improve the appearance of the primary bedroom
Create a more luxurious feel without a major renovation
Unlike trendy design updates that may fall out of favor, efficient storage remains desirable regardless of changing styles.
It's Not Just About Resale
One of the most interesting findings from the report is that homeowners don't remodel solely to increase resale value.
The report found that homeowners most value:
Improved functionality and livability
Durable, long-lasting materials
Better aesthetics
After completing remodeling projects:
64% said they wanted to spend more time in their home.
46% reported greater enjoyment of their living space.
That's exactly why many homeowners invest in custom closets. They make daily routines easier while also improving the home's long-term appeal.
What Makes a Custom Closet Different?
Not every closet renovation delivers the same results.
Professionally designed custom closets are tailored to your specific space and lifestyle, with features such as:
Adjustable shelving
Double-hanging sections
Soft-close drawers
Shoe storage
Jewelry organizers
Built-in hampers
Custom finishes
Integrated lighting
Rather than forcing your wardrobe to fit a standard system, the closet is designed around how you actually live.
Is a Custom Closet Worth It in New Jersey?
For many Northern New Jersey homeowners, the answer is yes.
Homes throughout Morris County are highly competitive, and buyers increasingly appreciate practical upgrades that improve everyday living. While kitchens and bathrooms remain important, organized storage has become an expected feature in many homes.
Whether you're planning to stay for years or preparing to sell in the future, a professionally designed custom closet can provide immediate benefits while remaining one of the strongest value-oriented remodeling projects available.
The Bottom Line
Every remodeling project should improve how you enjoy your home, not just its resale value.
The latest NAR Remodeling Impact Report confirms what many homeowners already discover after installing a custom closet: better organization, improved functionality, and a renovation that delivers one of the strongest cost recovery rates of any interior remodeling project.
If you're considering upgrading your closet, a professional design consultation can help you understand how a custom solution can maximize both your space and your investment.
While every homeowner's goals are different, independent research from NAR suggests that a professionally designed closet renovation can improve everyday functionality while also delivering one of the strongest cost recovery rates among common remodeling projects.
WELCOME TO FREEDOM CLOSETS
We're not a big franchise or a fancy design showroom, we're a hands-on team that designs and installs closets that work hard, look clean, and make your life easier.