U.S. remodeling and home improvement expenditures are forecasted to hit 431 billion dollars by the end of 2026. It is safe to say we are in the middle of a home improvement boom. Whether the goal is to improve functionality, update outdated fixtures, or get a home ready for sale, homeowners are spending money on home improvement ideas.
Whether you plan to stay in your home for years or plan to sell soon, here are some of the home renovation projects that add the most value to your home and see the highest return on your investment.
Exterior Improvement Projects
First impressions matter, especially in real estate. When it comes to assessing a home’s value, exterior improvements make a big impact. This makes sense — a buyer’s initial perceptions of a home’s quality start at the front door. Homes with high curb appeal have been shown to sell for an average of 7% more than homes with below-average exteriors. Improving your home’s exterior can harness impressive returns on your investment.
Exterior Cladding Replacement
| Siding Type | Average Cost | Average ROI |
|---|---|---|
| Exterior stone veneer | $11,066 | 91.4% |
| Siding – fiber cement | $22,093 | 68.3% |
| Siding – vinyl | $18,662 | 67.2% |
If a fresh coat of paint is not enough to improve the appearance of your home’s exterior, it may be time to replace the cladding — siding, stone veneer, or stucco. The good news is that this type of project not only gives your home a refresh but can also improve its value to potential buyers. Here is a breakdown of costs and the average return:
Window Replacement
| Average Cost | Average ROI |
|---|---|
| $20,482 | 67.5% |
Energy costs and conservation are top of mind for many homeowners, so it is only fitting that remodeling projects that improve energy efficiency are on the rise. New dual or triple-pane windows will reduce temperature transfers between outdoors and inside the home to keep you cool in the summer and warm in the winter. They can significantly reduce your home’s energy consumption and bills. New windows also appeal to home buyers — homes listed with new windows sold an average of seven days faster than homes listed without.
Deck Replacement
| Average Cost | Average ROI |
|---|---|
| $19,248 to $24,677 | 62.1% to 64.8% |
Outdoor living has always been popular, and it became even more so during the pandemic as families desired to create a vacation feel in the comfort and safety of their homes. Homes with dedicated spaces outdoors for relaxing and socializing continue to appeal to homeowners and homebuyers, and home improvement ideas that focus on those spaces are likely to recoup a good portion of the upfront investment.
There’s a reason why “pool” was the most popular search term on Zillow in 2020. Backyard projects extend a home’s living space and create inviting environments for relaxing and entertaining.
Decks in particular see an impressive rate of investment return. Whether you choose solid wood or composite, a deck provides a dedicated perch outside to lounge, dine, and enjoy some fresh air.
New Roof
| Average Cost | Average ROI |
|---|---|
| $31,535 | 59.6% to 100% |
Your roof’s condition makes a difference in your home’s value. After all, it is the single most important component that protects your home and belongings. It should be free of damage, debris, moss, and missing shingles or tiles. And the newer the better.
The average lifespan of a roof is 20 to 30 years (even up to 50 depending on the type), but that number will vary widely depending on your area’s climate and weather, material, and the quality of workmanship.
Front Door Replacement
| Average Cost | Average ROI |
|---|---|
| $2,206 | 63.8% |
Nothing says “welcome home” like a beautiful front door. It helps set the tone for the home’s interior design and imparts a sense of arrival. One of the more budget-friendly projects, an exterior door replacement will not set you back a lot of money, and you will probably recoup most of it should you decide to sell.
Interior Improvement Projects
The areas of a home that are most visible and see the most use are high on the list of projects that see the most value — flooring, kitchen, and bath. Buyers tend to notice them first when house hunting and their condition could impact your home’s sale price.
Bathroom Remodel
| Average Cost | Average ROI |
|---|---|
| $27,164 | 58.9% |
Given the last couple of years, most of us could use a spa-cation, and what better way than in the privacy and convenience of home? When planning their bathroom remodels, people not only want to update their fixtures but also create a soothing sanctuary to retreat from the stressors of daily life.
Just like a kitchen remodel, the ROI of a bathroom improvement project depends on its complexity and materials. For a higher rate of return, keep the same layout and choose mid-range quality features and fixtures — lighting, bathtub/shower, vanity, toilet, and tile.
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| Average Cost | Average ROI |
|---|---|
| $3,400 | 147% |
Sometimes all home improvement ideas need is a weekend and some elbow grease to improve your home’s appearance and value. If your solid wood flooring needs a pick-me-up but is otherwise in decent condition, consider refinishing them instead of installing new planks.
Keep in mind some wood species are better candidates than others for refinishing. Oak, walnut, maple, and cherry are examples of species that refinish beautifully, for example. Some engineered hardwoods can be refinished once or twice in their lifespan, depending on their top layer thickness. Check with your flooring manufacturer for its recommendations or consult a professional installer before starting the project.
Veteran real estate experts estimate a high rate of return on flooring improvements, noting particularly homeowners’ increased happiness living in their home at project completion.
Hardwood Flooring Replacement
| Average Cost | Average ROI |
|---|---|
| $5,500 | 118% |
If you purchased an older home and the wood flooring is past the point of repair, or if you wish to upgrade your carpet or tile to wood, a full replacement may be in order. Installing hardwood flooring is a big project, but it is appealing to buyers and can help increase your home’s value.
Kitchen Remodel
| Average Cost | Average ROI |
|---|---|
| $28,279 | 67% to 75% |
The kitchen is the command center of the home and, if you plan your remodel right, an opportunity to recoup a good chunk of your renovation expenses. Kitchen remodeling projects can vary depending on project scale and budget. Typically the larger the project and the more upgrades it includes, the smaller the return on investment.
The sweet spot for getting a higher return is to limit the amount of structural work while replacing most features and fixtures. The less time the drywaller, electrician, and plumber are on your property, the less money you will spend. But adding one or two upgrades in the kitchen can bump up a home’s sale price. According to Zillow, homes with steam ovens sold for 3.7% more than the listing price, new appliances for 2.6% more, and quartz countertops 2.3%.
Choose Your Next Renovation Project
Deciding on where to spend your remodeling budget and how much can feel challenging, but it doesn’t have to be. Prioritize home improvement ideas that will increase your happiness in the home that also appeal to buyers if you decide to sell now or in the near future.
Find the Right Contractor for Your Home Improvement Project
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