Frequently I am asked by clients for insight into the most valuable home renovations in terms of return on investment. It’s a sensible question – especially if one is considering selling in the near future.
Many call me assuming they should consider doing a major overhaul on their bathrooms and kitchens to increase the value of their home and see that biggest return on investment.
It may seem like these would be the logical choices. After all, both of these rooms are among the most popular for home renovations. Who doesn’t want a brand new kitchen made for the at-home-chef or a gleaming bathroom to rival the best of spas?
However, many are surprised to find out that those particular renovations are actually not the way to go if ROI (return on investment) is the primary goal.
A 2023 study shows that the best projects to do to your home if you are hoping to recoup the costs are largely outside projects. Entry door replacement, windows, siding and garage doors all figured quite highly on the list, with the number one spot going to HVAC electrification conversion.
2023 Cost vs. Value Report Top 10 Projects
| Rank | Remodeling Project | Job Cost | Value at Sale | Cost Recouped |
| 1 | HVAC Electrification Conversion | $17,747 | $18,366 | 103.5% |
| 2 | Garage Door Replacement | $4,302 | $4,418 | 102.7% |
| 3 | Manufactured Stone Veneer | $10,925 | $11,177 | 102.3% |
| 4 | Entry Door Replacement | Steel | $2,214 | $2,235 | 100.9% |
| 5 | Siding Replacement | Vinyl | $16,348 | $15,485 | 94.7% |
| 6 | Siding Replacement | Fiber-Cement | $19,361 | #17,129 | 88.5% |
| 7 | Minor Kitchen Remodel | Midrange | $26,790 | $22,963 | 85.7% |
| 8 | Window Replacement | Vinyl | $20,091 | $13,766 | 68.5% |
| 9 | Bath Remodel | Midrange | $24,606 | $16,413 | 66.7% |
| 10 | Window Replacement | Wood | $24,376 | $14,912 | 61.2% |
While minor kitchen and bathroom renovations do seem to hold a good portion of their value and figure in the top ten of this list, major renovations in these spaces do not.
| Bath Remodel | Midrange | $39,710 | $18,270 | 46.0% |
| Major Kitchen Remodel | Midrange | $77, 939 | $32,574 | 41.8% |
| Bath Remodel | Upscale | $76,827 | $28,203 | 36.7% |
| Major Kitchen Remodel | Upscale | $154,483 | $48,913 | 31.7% |
| Bathroom Addition | Midrange | $57,090 | $17,237 | 30.2% |
| Primary Suite Addition | Midrange | $157,855 | $47,343 | 30.0% |
| Bathroom Addition | Upscale | $104,733 | $27,830 | 26.6% |
| Primary Suite Addition | Upscale | $325,504 | $73,875 | 22.7% |
The most noticeable trend according to the report has been the plunge in the overall ROI numbers. While the projects with the highest returns have edged over 100%, those at the lower end of the ROI range have dropped well below 50%, with the overall Cost-Value ratio down to 34.8%, the lowest in the history of the report. Perhaps not surprising considering current inflationary trends.
If you are considering doing renovations and would like some advice about projects that will have the biggest return on investment for your home, please contact me. I’m always happy to help.