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Renovation ROI: Which Home Improvements Are Worth the Investment

  • Writer: martincuberenos
    martincuberenos
  • Jan 12
  • 4 min read

Updated: Jan 16

"When it comes to home renovations, the question on many homeowners’ minds is: Which upgrades will give the best return on investment (ROI)? Whether you're planning to sell soon or simply want to boost your property’s value, strategic renovations can make a significant difference. Here’s a breakdown of the home improvements that typically offer the highest ROI and why they’re worth considering.




1. Kitchen Remodels: The Heart of the Home

Modern kitchen with wood cabinets, sleek black island, and dining area. Large windows let in natural light. Minimalist, elegant design.

The kitchen is often referred to as the heart of the home, and it’s one of the first areas potential buyers evaluate. A well-designed, functional kitchen not only attracts buyers but also increases your home’s value significantly.


  • ROI Potential: Minor kitchen remodels can offer an ROI of up to 90%, while major remodels average around 60-75%.

  • What to Focus On: Upgrade cabinets, countertops, and appliances. Consider energy-efficient options and timeless finishes like quartz or granite.

  • Pro Tip: Stick to a budget that aligns with your home’s value. Over-investing in a high-end kitchen for a modest home may not yield a proportional return.




2. Bathroom Upgrades: Small Changes, Big Impact

Modern bathroom with glass shower, wooden vanity, and white fixtures. Potted plants and decorative art add a fresh, inviting feel.

Bathrooms are another high-priority area for homebuyers. Modern, updated bathrooms with quality fixtures can be a deciding factor during a sale.


  • ROI Potential: Mid-range bathroom remodels can recoup 75-90% of the cost, while upscale renovations typically return around 60-75%.

  • What to Focus On: Upgrade vanities, lighting, and fixtures. Add a fresh coat of paint, replace outdated tiles, and install water-saving features. Walk-in showers and dual vanities are trending features that appeal to many buyers.

  • Pro Tip: Showers are typically the most expensive part of a bathroom renovation. If your shower is still working great, you may want to consider investing in the rest of your bathroom. If you have loose or cracked tiles, grout or corners, or worse if you notice mold or have water damage, then you should refrain from using that shower until it is properly repaired or replaced. Failure to do so can result in thousands of dollars in additional water damage to the structure of your house!




3. Basement and Attic Conversions: Maximizing Usable Space

Modern living room with a gray couch, sleek black bar with stools, wooden flooring, and glass stair railing. Bright, minimalistic decor.

Unfinished basements and attics represent untapped potential. Converting these areas into livable spaces can add substantial value to your home.


  • ROI Potential: Basement renovations typically yield an ROI of 70-100%, while attic conversions often recoup 50-65%.

  • What to Focus On: Create a functional space, such as an additional bedroom, home office, or entertainment area. Ensure proper insulation and lighting to make the space inviting.

  • Pro Tip: Incorporate storage solutions to maximize functionality without compromising aesthetics.




4. Flooring Upgrades: A Foundation of Style

Close-up of a wood floor with a natural grain pattern in various shades of brown, creating a warm and rustic atmosphere. No text visible.

Outdated or damaged flooring can be a major turnoff for buyers. Upgrading to modern, durable flooring can transform the look of your home.


  • ROI Potential: Hardwood flooring can recoup 80-100% of the cost, while luxury vinyl or laminate offers a budget-friendly alternative with a strong ROI.

  • What to Focus On: Choose neutral tones and materials that are both stylish and practical for high-traffic areas.

  • Pro Tip: Refinish existing hardwood floors instead of replacing them to save costs while achieving a fresh look.




5. Boosting Curb Appeal: First Impressions Matter

Two-story white house with gabled roof, surrounded by green lawn and trees. Brick steps lead to front door, creating a peaceful vibe.

Your home’s exterior is the first thing buyers see. Enhancing curb appeal can significantly increase the perceived value of your home.


  • ROI Potential: Basic landscaping and exterior improvements often yield an ROI of 75-100%.

  • What to Focus On: Invest in fresh paint, updated siding, or a new front door. Maintain a well-kept lawn and add colorful plants for visual appeal.

  • Pro Tip: Consider replacing old garage doors, which can deliver an ROI of over 90%.




6. Energy-Efficient Improvements: Saving Money and the Planet

Stacks of white window frames with glass panes leaning against a white wall in a bright room. Various sizes, creating a neat arrangement.

Energy-efficient upgrades appeal to eco-conscious buyers and can lower utility bills, making your home more attractive.


  • ROI Potential: Energy-efficient windows and doors can recoup 70-90% of their cost, while adding insulation can yield around 100% ROI in some cases.

  • What to Focus On: Replace single-pane windows with double or triple-pane options. Upgrade to a smart thermostat and consider installing solar panels if feasible.

  • Pro Tip: Look for tax incentives or rebates for energy-efficient renovations to offset upfront costs.




7. Deck Additions: Outdoor Living at Its Best

Woman in white sitting on a balcony in sunlight, holding a green mug. Surrounded by plants, she smiles contentedly. Clear blue sky.

Outdoor spaces have become increasingly important, especially for families seeking areas to relax and entertain.


  • ROI Potential: Wood decks can offer an ROI of 65-75%, while composite decks typically return 60-70%.

  • What to Focus On: Use durable, low-maintenance materials. Add features like built-in seating, lighting, or planters to enhance usability.

  • Pro Tip: Ensure your deck complements your home’s style and landscaping for a cohesive look.




Renovation ROI Final Thoughts: Strategic Renovations Pay Off

Family of three smiling while looking at a house blueprint on the floor, surrounded by cardboard boxes, suggesting moving or renovation.

Not all renovations are created equal when it comes to ROI, but the right upgrades can significantly increase your home’s market value and appeal. Focus on projects that align with your budget, the current housing market, and your home’s specific needs. By prioritizing kitchen and bathroom upgrades, enhancing curb appeal, and investing in energy efficiency, you’ll not only enjoy the benefits while living there but also maximize your return when it’s time to sell.


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