Home Improvement Projects with the Highest ROI



Your home is many things. It’s a home base for your family: a tranquil place where you can relax and take shelter from life. It’s where you host friends and family, making new memories with every visit. And it’s your nest egg. For many homeowners, their family home is their single-largest investment in the future. One of the best ways to protect and grow this investment is by completing home improvement projects with a high return on investment (ROI). This means investing in remodeling and changes that can eventually pay off in a big way.

Start By Taking Care of The Essentials

It may feel like the homeowning equivalent of having to do your homework before going out with your friends, but one needs to tackle any essential items—including critical repairs, maintenance, and upgrades—before moving onto other remodeling projects. After all, a new kitchen might add to your home’s value, but it won’t matter if you have a failing roof that makes your home nearly impossible to sell. If your roof, plumbing, electrical, foundation, or structure need work, that’s what needs to get done first. 

Effective and efficient cooling and heating systems are essential to any home. Whether you live in a colder climate or one where the heat index will make one faint having a properly working HVAC system is a must. If your heater or air conditioner is on its last legs, you should really prioritize replacing it before moving on to other home upgrades. A new furnace or AC unit not only brings you peace of mind, but can improve your home’s energy-efficiency, lowering your energy bills for years to come. If you’re thinking about listing your home, new HVAC systems can also be a boon to your home’s market value.

Once you’ve completed any essential repairs and changes, it’s time to look into some other upgrades. Let’s move into the kitchen and bathroom next.

Upgrade your kitchen and bathroom

Flash back several decades ago, and the kitchen was far less important a room than it is today. In fact, in the modern American home, the kitchen has subsumed several other rooms—the dining room, parlor, and even the living room—to become the single-most important space in the home. It’s where homeowners host their guests, spend time with their families, and cook healthy meals together. It should be no surprise that homebuyers value upgraded, highly functional kitchens. On average, this project carries a 80.5% ROI—one of the highest among major home remodeling work.

If you’re going to upgrade your kitchen, first focus on the basic necessities: cabinets, countertops, and floors. These are the building blocks of a high-value kitchen, and you don’t want to cut corners here. The combination of these three aspects may make up a majority of your remodeling budget, but investing in high-quality materials and installation tends to pay off in the long run. Once you’ve set your kitchen’s style direction, complement your choices by adding a backsplash and installing a new sink. Don’t forget the lights: the right pendant lighting over a kitchen island marries form and function in your new sleek kitchen.

With the kitchen remodeled, turn your attention to the master bathroom. On average, homeowners who undertake a bathroom remodel see a 70.1% ROI. To make your dollar stretch further, avoid major layout changes and instead focus on the shower, toilet, flooring, and vanity. We recommend you work with an experienced remodeling contractor who can help with any plumbing work, leaving you to tackle items like laying tile and repainting the walls.

Invest in your backyard

Many homes have a stunning backyard with a wood deck that people want to hang out in. If you want your home to be competitive with others in its price range, a deck addition might be a worthwhile investment. In general, new decks have a 75.6% ROI, making them one of the best outdoor investments. Even if you’re not ready to invest in a new deck, you can still make effective changes to your backyard. Planting new trees or adding a gardening bed can be a great way to reimagine the space and add greenery and shade.

There are so many potential ways to add value to your home that it can be hard to know exactly where to start. As mentioned above, one good starting place is talking to an experienced remodeling contractor in your area. They’ll be able to provide you with ideas and help you plan out your project to be successful from the very beginning.

If you’re looking for more inspiration for your next project, be sure to check out this great infographic. It contains a breakdown of the average ROI for the projects discussed above, as well as several others, including garage door replacement and adding stone veneer. Take a look below!

Additional Resources

  • Should You Get A Home Renovation Loan? – When it comes to home renovations sometimes getting a loan to cover the cost can make sense since the home will increase in value thus offsetting the cost of the loan. Homeowners should learn how home renovation loans work in order to put them to best use for their project.
  • Smart Tips For Hiring The Best Contractor – Getting the work done right is more important that getting the lowest price as sometimes the lowest price may end up costing more due to having to repair what was done wrong the first time around.
Paul Sian About Paul Sian

Paul Sian has been helping buyers and sellers of real estate for over 14 years. Paul works with homeowners, home buyers, as well as investors helping them to realize their real estate goals. Paul publishes real estate articles on a variety of sites and has a podcast.