Ready to earn the biggest bang for your buck on home renovations?
It’s no secret that homeowners everywhere want to increase their home’s value. But unfortunately most remodeling projects will never pay for themselves.
Renovation projects only returned 74 cents for every dollar spent nationally in 2024.
While some home improvements can DOUBLE your money others may only return HALF their cost. Knowing which remodeling projects are most profitable can mean the difference between adding value to your home — and throwing your money away.
Let’s cover…
- Why Renovation ROI is Important For Homeowners
- Renovation Projects With The Highest Returns
- Why Exterior Remodeling Beats Interior Improvements
- The Formula To Making Smart Renovation Choices
Why Renovation ROI is Important For Homeowners
ROI stands for “Return on Investment” and measures how much money you can get back after resale.
Few renovation projects will return 100% of what you put into them. That’s simply how this process works.
Whether your plan is to stay in your home for another 10 years — or sell your home to a cash home buyer soon… Understanding renovation return on investment is critical.
Return on Investment is especially valuable for homeowners who don’t plan on staying in their home for many years. It allows you to make informed decisions about which remodeling projects actually put money in your pocket.
Here’s some food for thought…
Americans spent $603 billion on remodeling projects throughout 2024.
Yep. You read that right. Six hundred billion dollars.
While many of those dollars were likely poured into loved homes where renovation ROI didn’t matter… there are thousands of homeowners out there who overspend on remodeling projects every year. Projects that don’t add real value to their home.
Don’t be that person.
Focus your efforts and your money on renovations with the highest return on investment and you’ll never go wrong.
Renovation Projects With The Highest Returns
Here’s the exciting part… Some of the most expensive home remodeling projects yield the lowest returns. Meanwhile many budget-friendly projects provide insane ROI.
Ready for some numbers? Lets dig into the renovations with the highest return on investment.
Garage Door Replacement
Talk about killing two birds with one stone.
According to the 2025 Cost vs. Value Report, garage door replacement provides homeowners with over a 248% return on investment.
Having an updated garage door not only improves curb appeal it functions as the transition from outdoors to indoors. Think about what your guests, clients or buyers see first when they pull into your driveway.
If they see an old dingy garage door they won’t have confidence in the condition of your home. Replacing your garage door for around $4,600 is a quick and affordable way to boost curb appeal and see exceptional returns.
Steel Entry Door Replacement
Speaking of first impressions… The entrance door is right behind garage doors for a reason.
Door replacement recovered 100% of its costs this year. An attractive steel door adds instant curb appeal while increasing both security and energy efficiency for homeowners.
Door replacement costs roughly $2,355 which makes it one of the least expensive renovations for highest ROI.
Manufactured Stone Veneer
Give your home exterior a luxury look without breaking the bank.
Manufactured stone veneer saw its value rise to a 208% ROI. Previously valued at 153%, stone veneer has officially become a buyer’s best friend.
Stone veneer adds major curb appeal at a low cost. Buyers love it and are willing to pay top-dollar for homes that feature it.
Minor Kitchen Remodel
First of all… kitchens sell homes. Everyone knows it and buyers know it.
But a full kitchen remodel can get pricey fast and cost you more money than it’s worth. The trick is to complete a minor kitchen remodel.
Minor kitchen remodels include:
- Refacing cabinets
- New countertops and backsplash
- Fresh flooring
- Updated appliances
Just because you don’t have Hollywood Kitchen doesn’t mean you aren’t showing off to your buyers. Upgrade key pieces and watch your renovation ROI increase.
Vinyl Siding Replacement
New paint just won’t cut it if you’re looking to boost curb appeal for long term.
Vinyl siding returns now have an ROI of 97%! If your siding is looking a little worse for wear it may be time to invest in some new siding. Prospective buyers will notice and be wowed by your home’s exterior.
Why Exterior Remodeling Beats Interior Improvements
Hang onto your hats folks. Here’s a crazy statistic.
8 of the Top 10 renovations with highest return on investment are EXTERIOR upgrades.
Why? Curb appeal.
You never get a second chance to make a first impression. No matter how shiny and new your kitchen may look, if the exterior of your home leaves much to be desired your buyer will be turned away before they even step inside.
While you may love spending time in your kitchen remodeling your kitchens and bathrooms tends to not pay off come resale time. Remodeling projects like kitchens are very subjective and what you may view as beautiful others may not.
How To Make Smart Renovation Decisions
Ready to whip out the plastic and start remodeling? Hold your horses.
Before you start remodeling and overspending like crazy there are a few things you should always keep in mind.
The 30% rule. Try never to spend more than 30% of your home’s value on remodeling projects. Over-improving your home for your neighborhood is never a good idea. If your home is worth $300,000 try to keep remodeling costs under $90,000.
Know your neighborhood’s worth. Unless your street is lined with million dollar homes just because your house is worth $300,000 doesn’t mean you can remodel for $80,000 and list at $400,000. Your neighborhood establishes the baseline for what buyers are willing to spend.
Timeline. Remodeling based on your timeline is everything. If you’re planning on selling your home within the year stick with projects that will increase your curb appeal such as paint, landscaping and fixtures. If you plan on living in your home for many years major kitchen and bathroom remodels can start to make sense.
Remember…
DO YOUR HOMEOWNERS RESEARCH. Renovating your home before listing is imperative but don’t just take that at face value! Look into your local real estate market and find out what buyers in your area are looking for.
Bringing It All Together
Not all renovations are created equal.
While some renovation projects can earn you more than you put into them others will leave you losing money. Here’s a quick recap of everything covered.
- Garage door replacement — up to 248% ROI
- Steel entry door replacement — 100% cost recovery
- Manufactured stone veneer — 208% ROI
- Minor kitchen remodel — 113% ROI
- Vinyl siding replacement — 97% ROI
Notice anything these high dollar remodeling projects have in common?
They all focus on the exterior of your home. Upscaling your kitchen may impress your friends, family and neighbors but when it comes time to sell your home you won’t see the same ROI.
Exterior renovations provide you with the biggest bang for your buck. Invest in your home’s curb appeal and watch the offers roll in.
