Renovation ROI: Which Home Improvements Add The Most Value

When it comes to increasing the value of your home, not all renovations are created equal. If you’re thinking about selling your house or just want to make an investment that will pay off in the long run, it’s essential to choose home improvements that will give you the best return on investment (ROI).

Below are the top renovations that can significantly increase the value of your home, ensuring you get the most bang for your buck.

Kitchen Remodeling

Arguably one of the most vital rooms in any house, the kitchen often becomes the heart of the home. A modern, functional, and stylish kitchen can be a major selling point, especially for luxury homes, where buyers expect the best of everything.

When considering a kitchen renovation, think about updated appliances, stone countertops, and high-quality cabinetry. While you don’t need to go for the highest-end materials, ensuring a cohesive and modern look can dramatically boost your home’s value. On average, a minor kitchen remodel can recoup anywhere from 70-80% of its cost.

Bathroom Updates

Next to the kitchen, bathrooms are high on the list for potential buyers. Consider updating fixtures, tiles, and perhaps adding a double vanity if space allows. A modern, fresh, and clean bathroom can make a home feel newer and more cared for.

For homes with only one bathroom, adding a second one can also significantly increase its value. It’s estimated that homeowners can recoup between 60-70% of their investment with a bathroom remodel.

Landscaping Improvements

First impressions count, and the first thing buyers see when they pull up to your home is the yard. Investing in professional landscaping can drastically improve curb appeal.

Even simple improvements like maintaining a manicured lawn, planting seasonal flowers, or adding a new patio or deck can increase the perceived value of your home. Landscaping improvements can offer an average of a 100% return at resale, making it an excellent investment.

Adding Living Space

If there’s one thing homeowners crave, it’s space. Adding square footage to your home, whether it’s through finishing a basement, adding a room, or building a second story, can greatly increase its value.

It’s estimated that every 1,000 square feet added to a home can boost its sale price by more than 30%. Of course, the actual ROI will depend on the market, the quality of the renovation, and the type of space added.

Energy-Efficient Upgrades

As concerns about the environment and rising energy costs continue to grow, more and more buyers are looking for homes that are energy efficient. Consider replacing older windows with energy-efficient ones, adding insulation, or upgrading to a high-efficiency heating and cooling system.

Not only will these renovations make your home more appealing to potential buyers, but they can also reduce your monthly utility bills. The ROI for energy-efficient upgrades can vary, but homeowners often recoup upwards of 60% of their costs.

Fresh Paint And Updated Fixtures

Sometimes, the simplest updates can make the most significant difference. A fresh coat of paint in neutral colors can make your home feel new and modern.

Similarly, updating fixtures such as door handles, light fixtures, and faucets can give your home a more contemporary look without breaking the bank. These types of updates can have a varied ROI, but considering their relatively low cost and the potential to make a significant impact on buyers, they’re often well worth the investment.


When planning home improvements, it’s essential to strike a balance between what you desire and what will increase your home’s value. By focusing on renovations that offer a high return on investment, you can ensure that you’re making a smart financial decision, whether you plan to sell soon or stay for the foreseeable future.

Remember, while these statistics provide a general guideline, the actual return can vary based on your location, the state of the housing market, and the quality of the work done. Always consult with local real estate professionals and contractors before making major renovation decisions.