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Home Renovation ROI: National Averages and Top Projects for Resale Value

Average ROI for Home Renovations in the U.S.

Home remodeling projects generally do not pay for themselves fully at resale. Nationally, the average renovation returns only about 60–70% of its cost in added home value. In other words, most renovations cost more than they add in value, so homeowners typically recoup only a portion of what they spend. The exact ROI can swing with market conditions – for instance, during a recent market cooldown, overall resale returns hit record lows (one analysis showed an average cost-to-value ratio of just ~35% in 2023). Conversely, in hotter markets or years, ROI averages have trended higher (e.g. a 5.2% jump in average ROI from 2023 to 2024 as the housing market rebounded). The key takeaway is that only a few select projects approach or exceed a 100% return, while the majority of home improvements will come in under that breakeven mark.

Top Home Improvement Projects for ROI (National Average)

Data from recent Cost vs. Value reports reveals that small curb appeal upgrades yield the highest ROI for homeowners. In 2024, the top remodeling projects by return on investment were all exterior improvements:

  • Garage door replacement – ~194% ROI: Replacing an outdated garage door costs relatively little but recoups nearly double its cost on average at resale. (This jumped dramatically from ~103% the year prior.)
  • Steel entry door replacement – ~188% ROI: Installing a new front door (steel) also nearly doubles your money. A stylish, secure entry boosts curb appeal and buyer confidence.
  • Manufactured stone veneer – ~153% ROI: Adding a stone veneer accent to the front of a house returns over 150% of its cost, transforming the exterior’s look and elevating perceived value.
  • Minor kitchen remodel (mid-range) – ~96% ROI: A modest kitchen update (new countertops, cabinet refacing, fixtures, etc.) is the highest ROI interior project. Buyers place a premium on an updated kitchen, so a cost-conscious facelift can nearly pay for itself when you sell.

Aside from those top four, other projects with above-average ROI include fiber-cement siding replacement (~88% ROI) and wood deck addition (~83%), which enhance curb appeal and functional outdoor space. Even basic improvements like fresh paint, repairing flooring, or updating light fixtures can be cost-effective ways to boost buyer appeal. Realtors note that projects adding usable square footage in a cost-efficient way – for example, finishing a basement or converting an attic – tend to yield strong returns as well by increasing a home’s livable area. (In fact, a basement conversion to living space was estimated to recoup about 86% of its cost in one national survey.)

Projects That Typically Don’t Pay Off

On the other end of the spectrum, many big-ticket renovations have much lower ROI – meaning they cost far more than the value they add. Upscale, luxury, or highly personalized projects rarely come close to breaking even at resale. For example, a major kitchen remodel (down-to-the-studs renovation) might only recoup ~50% of its price tag, and an upscale kitchen overhaul returns even less (~38%). Bathroom additions and primary suite expansions are among the lowest ROI projects – a new master suite addition can recover as little as 24–36% of its cost on average. Even a mid-range bathroom remodel (in an existing space) only yields around 60–70% ROI in most markets. The Cost vs. Value 2024 data shows roof replacements, window upgrades, and HVAC system overhauls generally in the ~50–70% ROI range as well.

In short, **large-scale or luxury renovations tend to net a financial loss on resale – you do them primarily for your own enjoyment, not for profit. Homeowners should think twice about over-improving beyond neighborhood norms, since buyers won’t necessarily pay extra for features that are considered above and beyond market expectations. If your goal is maximizing resale value, be mindful that “dream home” projects (spa-like bathrooms, gourmet chef’s kitchens, elaborate additions) likely won’t give a good return in pure dollar terms.

Regional Variations in Remodeling ROI

Where your home is located can dramatically affect renovation ROI. Remodeling ROI is not one-size-fits-all across the U.S. – it varies with regional real estate markets and local buyer preferences. In fact, the Cost vs. Value report reveals some projects have extreme ROI differences by region. For example, in the Pacific states (West Coast), many improvements yield higher returns than the national average, whereas the same upgrades in the Midwest or South may fetch less added value. One striking example: a simple entry door replacement was estimated to recoup nearly 90% of its cost in the Pacific region but only about 40–50% of its cost in some Northeastern markets.

Likewise, overall remodeling payback tends to be highest in high-cost coastal areas – for several years the New England and Pacific regions have led the nation in average ROI, whereas regions like the East North Central (Upper Midwest) and East South Central (Deep South) tend to lag behind. These disparities are driven by differences in labor/material costs and what buyers in each market are willing to pay. The key insight is that homeowners should research local data in addition to national averages. An improvement that’s a home run in one region could be a flop elsewhere. Consulting with local real estate professionals can help you understand which specific upgrades have the best payoff in your area.

Expert Tips to Maximize Resale Value

Prioritize projects that offer the most bang for your buck. Real estate and remodeling experts consistently advise focusing on high-ROI improvements – especially those that enhance curb appeal and core living spaces – when your goal is boosting resale value. Here are some data-driven recommendations:

  • Focus on the first impression: Simple exterior updates like a new garage door, fresh front door, updated siding or paint, and well-kept landscaping can dramatically improve a buyer’s first impression. “Curb appeal projects often outperform indoor projects in ROI because they directly impact a buyer’s first impression,” one real estate expert notes.
  • Refresh the kitchen (cost-effectively): You don’t need a lavish kitchen overhaul – in fact, that often backfires on ROI. Instead, consider a minor kitchen remodel: update cabinet fronts, countertops, appliances, and fixtures without changing the layout. This kind of facelift yields the highest return of any interior project (around 90–100% ROI) because the kitchen is so important to buyers.
  • Address necessary repairs and maintenance: While basic maintenance projects (roof repair, old HVAC or plumbing fixes) might not show a high ROI percentage in reports, not doing them can hurt your home’s value and curb appeal. A new buyer will discount their offer (or avoid the home) if big-ticket maintenance items are looming.
  • Upgrade wisely, in line with your market: If you’re going to invest in improvements, choose ones that match your home’s value range and neighborhood. Adding an extra bedroom or finishing a basement can be smart if your home is lacking those compared to local comps.

Finally, remember that ROI isn’t everything – your own enjoyment of the home matters too. The smartest approach is to plan renovations with both personal value and resale value in mind. By prioritizing the right projects – and not overpaying for those with low return – homeowners can significantly boost their home’s resale value and attract buyers, without breaking the bank.

Sources

The following sources provide data-driven insights to help homeowners make renovation choices that maximize their return on investment at resale:

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