Which home improvements bring the greatest ROI?

When homeowners invest in renovations—whether preparing to sell or simply updating their space—they want to know that the money spent will increase their home’s value. But which home improvements actually deliver the best return on investment (ROI)? The answer may surprise you.

Many people assume that kitchen and bathroom renovations top the list. While keeping these spaces updated is always smart, high-end kitchen or bath remodels don’t generate the largest ROI. In fact, if you’re renovating specifically to prepare a home for the market, mid-range upgrades consistently outperform upscale remodels when it comes to recouping costs.

Exterior Improvements Deliver the Highest ROI

According to national studies, the most profitable home upgrades aren’t inside the home—they’re outside. Year after year, replacing the garage door ranks as the #1 improvement for ROI, with manufactured stone veneer coming in second. These projects boost curb appeal instantly, and buyers respond.

The data also shows that 11 of the top 12 ROI-driving projects are exterior or indoor/outdoor improvements, including:

• New windows

• Roof replacement

• Deck addition

• Siding replacement

• Minor kitchen remodel (the only interior project in the top three)

These upgrades not only enhance appearance—they improve functionality, efficiency, and long-term durability, all of which buyers value.

Two Important Projects Missing From the List

Looking at the cost-versus-value chart, two impactful renovations are noticeably absent:

1. Basement renovation
Adding livable square footage almost always increases market value. Finished basements appeal to today’s buyers who want flexible space for offices, gyms, guest rooms, or play areas.

2. Refinished hardwood floors
Freshly refinished floors make a huge first impression and eliminate a major project buyers prefer not to handle themselves. It’s one of the most cost-effective cosmetic upgrades a seller can make.

Final Thoughts: Renovate Wisely for Maximum Value

Most home improvements will add value as long as they are not overly personalized or excessively high-end. A project necessary for accessibility—like a ramp—may not increase ROI, but it is still absolutely worth doing for quality-of-life improvements.

When planning updates, keep these two rules in mind:

1. Avoid overly extravagant finishes.
   Mid-range choices often provide the best ROI.

2. Don’t make highly personal changes that are difficult to reverse.
   The more universally appealing your home is, the better.

A thoughtful renovation strategy can increase your home’s value, boost curb appeal, and make life more comfortable—whether you’re planning to sell or stay.