Home Improvement Projects That Add the Most Value

Understanding ROI for home improvements

Home improvements can increase your property value, but not every project delivers the same return on investment. Understanding which projects offer the highest ROI helps you prioritize spending, especially if you're planning to sell.

Data from Remodeling Magazine's annual Cost vs. Value report consistently shows that exterior improvements and mid-range projects tend to outperform luxury upgrades in terms of percentage return.

1. Garage door replacement (ROI: 90–100%+)

Replacing an outdated garage door is consistently the #1 ROI project in national surveys. A new insulated garage door costs $2,500–$5,000 installed and can recoup nearly 100% of its cost at resale.

Curb appeal matters enormously to buyers. A garage door often occupies 30–40% of a home's front-facing exterior, making it one of the most visually impactful upgrades.

2. Manufactured stone veneer (ROI: 85–95%)

Adding manufactured stone veneer to the lower third of a home's facade costs $8,000–$12,000 and typically recoups 85–95% of its cost.

This project transforms a home's appearance and signals quality to potential buyers. It works especially well on ranch and colonial-style homes.

3. Minor kitchen remodel (ROI: 70–80%)

A minor kitchen remodel — refacing cabinets, updating countertops, new hardware, updated appliances, and fresh paint — costs $15,000–$25,000 and typically returns 70–80%.

The key word is 'minor.' Major kitchen renovations with custom cabinetry and luxury finishes cost more but return a lower percentage. Focus on creating a fresh, functional space rather than a showroom kitchen.

4. Siding replacement (ROI: 70–80%)

New siding dramatically improves curb appeal and energy efficiency. Fiber cement siding costs $12,000–$18,000 and returns 70–80% of its cost.

Vinyl siding is more affordable ($8,000–$14,000) and still delivers strong ROI. Either option signals to buyers that the home's exterior is well-maintained and protected.

5. Window replacement (ROI: 65–75%)

Replacing old single-pane windows with energy-efficient models costs $10,000–$20,000 for a typical home and returns 65–75% at resale.

Beyond ROI, new windows reduce energy costs, improve comfort, reduce noise, and eliminate maintenance hassles of older wood windows. Vinyl and fiberglass frames offer the best value.

6. Bathroom remodel (ROI: 60–70%)

A mid-range bathroom update with new fixtures, flooring, vanity, and tiling costs $12,000–$25,000 and typically returns 60–70%.

Updated bathrooms are among the first things buyers look for. Even modest improvements like new tile, modern fixtures, and a frameless glass shower can significantly increase appeal.

7. Roof replacement (ROI: 55–65%)

A new roof costs $9,000–$24,000 and typically returns 55–65% of its cost. While the percentage seems lower, a new roof eliminates one of the biggest red flags for buyers and inspectors.

Homes with aging roofs often sell for less or face buyer requests for significant credits. A new roof provides peace of mind and removes a major negotiating obstacle.

Projects that typically lose value

Swimming pools, luxury bathroom additions in excess of the neighborhood, home offices converted from garages, and over-customized spaces tend to return less than 50% of their cost.

The golden rule: avoid improving your home beyond the level of your neighborhood. Buyers won't pay a premium for features that exceed what comparable homes offer.

When in doubt, invest in projects that improve the home's fundamentals: structure, energy efficiency, curb appeal, and the kitchen and bathrooms.

Frequently asked questions