Home Renovations With The Highest ROI

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Jun 5, 2023

In the world of real estate and home ownership, one principle reigns supreme: maximizing your return on investment (ROI). Whether you’re considering selling your property or simply looking to improve it for your comfort, focusing on home renovations that yield the highest ROI is a smart move. In this article, we’ll explore the top home improvement projects that provide the best return on your investment.

1) Kitchen Remodel

Arguably the heart of every home, the kitchen is a top priority for potential buyers and homeowners alike. Updating this space can significantly increase your home’s value. Whether you opt for a minor kitchen remodel, such as replacing appliances and refacing cabinets, or a major overhaul involving a complete redesign, your investment in the kitchen tends to pay off. On average, homeowners can expect a ROI of about 70-80% on kitchen remodels.

2) Bathroom Renovation

Bathroom renovations are another home improvement project that can produce a high ROI. Simple changes like updating fixtures, improving lighting, or adding an attractive vanity can make a big difference. More substantial improvements such as adding a new bathroom can yield even higher returns, with an average ROI of approximately 60-70%.

3) Adding a Deck or Patio

Outdoor living spaces have become increasingly desirable, especially given the recent trend toward at-home socializing. Adding a deck or patio can enhance your home’s appeal and functionality, providing a substantial ROI – often in the range of 65-75%.

4) Adding Energy-Efficient Insulation

With the growing emphasis on sustainability and cost-saving measures, energy-efficient home improvements are a win-win. You can add insulation to an attic, crawl space, exterior walls or subflooring. Upgrading your home’s insulation not only reduces utility bills but also makes your home more appealing to potential buyers interested in eco-friendly properties. This improvement can fetch a ROI of around 70%.

5) Replacement of Exterior Siding or Windows

Curb appeal significantly influences a home’s value. Replacing exterior elements like siding, doors, or windows not only enhances the aesthetic appeal but also contributes to energy efficiency. Depending on the materials used, these projects can generate an average ROI of 60-75%.

6) Adding or Refinishing Hardwood Flooring

Home buyers often appreciate hardwood floors for their look and longevity. By replacing carpet with hardwood flooring, you can give your home a modern, clean, and spacious feel. Depending on the type of wood used and the overall quality of the installation, this change can result in an ROI of 70-80%.


To maximize your ROI, it’s crucial to plan your home renovations wisely. Consider the potential value each project adds to your home in the long run and whether it aligns with current housing market trends. Also, keep in mind that while DIY can save on upfront costs, professional installation often leads to higher-quality work and better longevity, contributing to a higher ROI when it’s time to sell.

The right home improvements can turn your house into a more comfortable living space, increase its value, and help you secure a better return when you list and sell. By focusing on the renovations with the highest ROI, you can make a smart investment in your home and future.

Remember, each home and real estate market is unique. It’s recommended to consult with a local real estate professional before undertaking significant renovations to ensure they’ll add value in your specific situation.

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