These are the best ROI home improvements and renovations

Home improvements can be a smart way to build equity, especially when they’re chosen with a return on investment in mind. The most valuable renovation and remodeling projects help increase your home’s resale value beyond the cost of work.

This guide highlights the best ROI home improvements that can boost your home’s resale value when it’s time to sell or make it a better investment for the future.

Kitchen remodeling: Heart of the home

The kitchen is one of the key selling points of a home. It’s where we spend much of our time cooking, gathering, and making memories. Because it plays such a central role in daily life, a well-designed kitchen can leave a lasting impression on prospective buyers.

Modernizing the space with updated appliances, fresh cabinetry, or an improved layout can help boost the home’s overall appeal. Even modest upgrades, like refinished countertops or new lighting and hardware, can go a long way toward showing that the home is cared for and move-in ready.

Midrange kitchen updates: Balance of budget and style

You don’t have to gut your entire kitchen to see a return. Midrange updates, such as new cabinets, countertops, flooring, and major appliances, can offer a fresh, modern look to help improve your kitchen ROI without the cost of a full remodel.

To get the most out of your investment, focus on updates with broader appeal. Think neutral cabinet tones, stainless steel appliances, and solid surface countertops like Corian and quartz. While granite countertops are still considered high-end, they often require more maintenance than some buyers are willing to undertake.

Nationally, a midrange kitchen offers a 96% ROI. This means that, on average, homeowners recouped about 96% of the renovation cost when they sold their homes.

Appliance upgrades: Efficient and modern

Not every homeowner wants to take on a full kitchen update, and that’s okay. Swapping out old appliances for newer, energy-efficient models can give your kitchen an instant refresh while increasing the home’s value and appeal to potential buyers.

On average, new kitchen appliances can return about 60% of their cost in added value to the home. Even a few smart upgrades, like a sleek refrigerator or energy-efficient dishwasher, can make the space feel more modern.

Bathroom upgrades: Create a spa-like oasis

The bathroom might be one of the smallest spaces in the house, but it carries a lot of weight with buyers. It’s one of the first places prospective buyers check for signs of upkeep and cleanliness, and one of the easiest spaces to elevate with a few updates.

Upgrading dated fixtures, refreshing tile, or improving the lighting can instantly make the room look more modern and feel like a spa-like retreat. And if you’re thinking of bigger upgrades, such as a walk-in shower or accessibility-friendly features, these can add long-term value and better functionality.

Midrange bathroom remodel: Improve functionality

A midrange remodel balances cost and impact. It’s designed to refresh the space at an affordable price without being a full tear-down. A midrange bathroom remodel often includes new singles, a replacement bathtub or shower, updated flooring, modern cabinetry, and sometimes a fresh coat of paint or upgraded fixtures. Even simple changes, such as new linens and rugs, can create an entirely new look.

The average cost for a midrange bathroom remodel falls around $25,000 with an ROI of 74%. This cost includes the replacement of all fixtures, hardware, bathtub, ceramic tile, toilet, vanity counter with integral sink, recessed medicine cabinet with light, ceramic tile floor, and vinyl wallpaper.

Curb appeal enhancements: The power of first impressions

First impressions matter and when it comes to your home, the exterior sets the tone. Simple upgrades to the front of the house can make a big difference in how potential buyers view your property and how much value they place on it.

Fresh paint, a clean entryway, updated lighting, and fresh landscaping can all improve curb appeal without requiring a major investment. Here are some of the best updates for curb appeal and great ROI.

Garage door replacement: A subtle facelift

Replacing the garage door can instantly give the home a facelift with a higher-than-average return on investment. Older garage doors are prone to sticking, noisy operations, or failing sensors. All these that can lead to expensive repairs or safety concerns.

On average, a garage door replacement has a return of about 194%, making it one of the best ROI projects for homeowners. For that return, it’s also one of the most affordable, with a cost of around $4,500.

Entry door upgrade: Welcoming and secure

A new front door is another upgrade that can instantly increase your home’s curb appeal. It offers a fresh, modern look and creates a stronger first impression, which is something buyers notice before they even step inside. Beyond style, a new entry door can improve insulation, energy efficiency, and security.

A new steel entry door can deliver an ROI of 188%. For an initial cost of $2,355, homeowners can potentially add $4,430 to their resale value.

Manufactured stone veneer: An elegant facade

Manufactured stone veneer gives the front of a home a refined, custom-built look that stands out without the cost of natural materials. Depending on the design, you can use it as a subtle accent or apply to more broadly to match your style. Manufactured stone veneer has an ROI of 153% and a job cost of around $11,200.

HVAC system updates: Comfort and efficiency

An HVAC system plays a major role in a home’s comfort and livability. These systems typically last 15 to 25 years. Some even last up to 30 years and newer models can make a home more attractive to buyers.

High-efficiency systems: Energy savings

Upgrading to a high-efficiency HVAC system, such as a heat pump, can lower monthly utility bills and reduce a home’s overall energy consumption.

They may not be flashy, but energy efficiency systems can quietly add value where it counts most. Depending on where you live, replacing heating and cooling equipment can reduce your annual energy bill by nearly $140. On average, this kind of upgrade offers a 30% ROI and often attracts buyers who care about long-term savings and sustainability.

Smart thermostat installations: Modern climate control

Smart thermostats are an easy and affordable way to upgrade your home’s efficiency. Many models let you control the temperature from your phone to help you save energy, whether you’re at home or away.

While the ROI varies, the low upfront cost, especially when discounted by utility providers, makes this a low-risk improvement.

Siding replacements: Protection and style

Siding does more than protect a home from the elements. A well-chosen siding material can improve both energy efficiency and design to give the home a fresh look. With so many styles and materials available, homeowners have plenty of options to match their budget and aesthetic.

Fiber-cement siding: Durable and attractive

Fiber-cement siding is a long-lasting upgrade over standard vinyl or wood. It’s built to withstand elements, resist moisture and rot, and has a lifespan that can last anywhere from 50 to 100 years, depending on care and climate. Fiber-cement siding has an average ROI of 88%.

Vinyl siding: Cost-effective option

Vinyl siding is one of the most budget-friendly ways to upgrade a home’s exterior. It’s available in a wide range of colors and styles and provides homeowners with the flexibility to update their curb appeal without undertaking a major renovation. Installing vinyl siding has an ROI of up to 80% with a job cost under $17,500.

Window upgrades: Light and insulation

New windows, like new doors, do more than improve the energy efficiency of a home. They change how your home feels and functions. New windows can help block out drafts, reduce heating and cooling costs, and bring more natural light into the home.

Aside from the energy savings, new windows can modernize a home’s look from the inside out. Shapes, sizes, and frame styles and materials all play a part, and even subtle design changes can have a noticeable impact. For the best performance, look for windows with gas-filled panes, sturdy frames, and low-e coatings that improve insulation.

The ROI of window replacement depends on the materials but ranges between 63% for wood and up to $67 for vinyl.

Roof replacements: Long-term security

A well-maintained roof can last for decades. Depending on the material, it can last around 30 years on average or longer. Although it’s a bigger investment, roof replacement shows buyers that the home has been cared for and that they won’t have to worry about costly repairs right away.

Durable materials: Weather the elements

Not all roofs are built the same. While asphalt shingles are the most common roofing material and budget-friendly option, they typically last 20 to 30 years. For homeowners planning to stay put longer, or those who want to make a stronger impression when selling, a durable material like metal, slate, clay, or concrete offers added protection that can last 50 to 100 years.

The materials you choose affect not just its lifespan but resale value too. A new roof can offer an ROI of 60% to 70%, depending on the material.

Flooring improvements: Set the foundation

Flooring sets the stage for how a home looks, feels, and functions. Swapping out dated or damaged floors for something fresh, such as hardwood or luxury vinyl planks, can instantly make a space feel more inviting. It’s one of those upgrades buyers notice right away, and it often influences how they view the rest of the home.

Hardwood floors: Timeless value

Hardwood is the most popular choice for flooring and typically has the greatest impact on a home’s resale value. But like any home feature, it may not appeal to all buyers. Hardwood flooring ranges greatly in cost, depending on the wood variety and the flooring thickness.

Oak is the most widely used type of hardwood flooring, followed by maple and walnut. Depending on the material and installation, hardwood flooring delivers a 118% return on investment.

Luxury vinyl planking: Affordable and stylish

Luxury vinyl planks (LVP) give the appearance of hardwood without the high price tag. It’s a popular pick for homeowners who want the look of elegance while sticking to a budget. LVP also appeals to a wide range of buyers and is frequently found in newer builds thanks to its durability and easy maintenance.

This flooring option typically provides a 70%-80% ROI and is one of the most cost-effective flooring updates in terms of resale value.

Usable space transformations: More for less

Converting unfinished areas, such as attics or basements, into livable square footage can offer significant value returns. These upgrades upgrade your home’s functionality and increase its overall appeal to buyers looking for more room without the cost of an addition.

Attic conversions: Extra living space

Finishing an attic is one way to unlock unused space footage and turn it into something functional, such as an extra bedroom, office, or recreational area. While it may be one of the pricier upgrades, this type of renovation adds usable space and has an average ROI of 56%.

Basement remodels: Versatile uses

The basement is another area of the home that you can convert into usable square footage. Consider adding a rec room, extra bedrooms, or a combination of both to open up more living space and increase the home’s value. A basement conversion typically offers an ROI of around 71%.

Outdoor living areas: Enjoyment and appeal

Outdoor spaces have become more than just a nice-to-have. They’re an extension of how we live, entertain, and unwind. Anything from a simple patio area with a firepit to a lush outdoor patio (with couches and seating), complete with a kitchen, can expand the recreational space of the home and add to its value.

Depending on the setup, upgrading your outdoor space can offer a 200% ROI in warmer areas, while decks and patios tend to see returns closer to 80%.

Financial planning: Getting the best ROI

If you can’t pay out-of-pocket, there are plenty of ways to finance your home improvement project.

Home equity loans: Leveraging investment

Home equity loans allow homeowners to tap into their home’s equity, which is the difference between your home’s value and what you still owe on your mortgage, to pay for renovations.

To be eligible, you’ll need enough equity in your home and a credit score of 680 or above. The higher your credit score, the more cash you may be able to take out. You’ll also need a maximum debt-to-income ratio of 45%.

Interested in a home equity loan? Explore your refinancing options with Rocket Mortgage.

Understanding market dynamics: Make informed decisions

The timing of your renovation can impact how much value you get out of it. In a hot market where prices are climbing, upgrades like a kitchen refresh or new siding might deliver greater returns. But if the market cools and tips in the buyer’s favor, sellers may need to turn to strategic renovations to help their home stand out and attract stronger offers.

Before diving into a project, take a step back and weigh the pros and cons, not just for your home, but also for your local market. An outdoor addition might be a hit in Florida but not as practical in Michigan.

FAQ

Below are the most frequently asked questions about the best ROI home improvements.

What home improvement has the highest ROI?

The home improvements with the highest ROI are typically minor kitchen and bathroom renovations. These often recoup 74% to 96% of their investment.

What is the average ROI for home improvements?

The average ROI for home improvements depends on the type of project, cost, location, and the state of the market.

Is it profitable to renovate your home?

It can be profitable to renovate your home, but it varies depending on the type of project. The total cost, location, and market can also influence your return on investment.

Does a new paint job increase home value?

In most cases, a new paint job can increase home value. Interior painting has an average ROI of 107%, while exterior painting has an ROI of about 50%.

What is the best siding to increase home value?

Vinyl is considered the best siding to increase home value. Vinyl siding replacement has an ROI of 80%.

The bottom line: Assess ROI before renovating

Some updates may be just for you, but others can pay off when it’s time to sell.

If your goal is to boost your home’s value, choosing renovations with a solid return on investment is key. Projects like kitchen upgrades, new siding, or updated windows can help improve your day-to-day and appeal to future buyers. Before tackling your next project, look at your local market and get clear on what matters most in your area.

Ready to take the next step? Now is a great time to explore your refinancing options with Rocket Mortgage.