ROI of Home Renovations: What Adds the Most Value?
Home renovations can be a significant investment, but they can also significantly increase the value of your property. Whether you're planning to sell your home in the near future or simply want to enhance its long-term value, understanding the return on investment (ROI) of different renovations is crucial. Choosing projects that offer the highest ROI can maximize your investment and ensure your home is both beautiful and marketable.
At Five Mile Construction, we've helped countless homeowners make smart renovation choices that boost their property value. We understand the local market and know which upgrades are most likely to deliver a strong return. This blog post will explore some of the home renovations that consistently provide the highest ROI, helping you make informed decisions about where to invest your money.
Kitchen Remodel: The Heart of the Home and a High-Value Investment
Kitchen remodels consistently rank among the top renovations for ROI. The kitchen is often considered the heart of the home, and an updated, functional, and stylish kitchen can significantly enhance a home's appeal and value.
- Minor Kitchen Remodel: Even a minor kitchen remodel, which might include refacing cabinets, updating countertops, installing new flooring, and upgrading appliances, can yield a substantial return, often recouping around 75-85% or more of the cost at resale.
- Major Kitchen Remodel: A major kitchen remodel, which may involve a complete layout change, new custom cabinetry, high-end appliances, and premium countertops, can also deliver a strong ROI, typically in the range of 50-70%. Although this is a lower percentage than a minor remodel the value added to the home will often be much higher.
- Key Elements: Focus on elements that buyers value most, such as:
- High-quality countertops: Granite, quartz, and other solid surface materials are popular choices.
- Updated cabinetry: Refacing or replacing cabinets can dramatically transform the look of a kitchen.
- Energy-efficient appliances: Stainless steel appliances are always in demand.
- Good lighting: A well-lit kitchen is essential.
Bathroom Remodel: Adding Luxury and Functionality
After kitchens, bathroom remodels offer some of the highest returns on investment. Updated bathrooms can significantly enhance a home's appeal and value, particularly in older homes.
- Midrange Bathroom Remodel: Updating an existing bathroom with new fixtures, a new vanity, updated flooring, and a fresh coat of paint can yield an ROI of around 60-70%.
- Upscale Bathroom Remodel: A more extensive remodel, which might include adding a separate shower and soaking tub, in-floor heating, or high-end finishes, can also deliver a good return, though typically lower than a midrange remodel in percentage terms.
- Focus on:
- Modern fixtures: Replace outdated faucets, showerheads, and toilets with modern, water-efficient models.
- Updated vanity and countertops: A new vanity and countertop can instantly refresh the look of a bathroom.
- Good ventilation: Ensure proper ventilation to prevent moisture problems.
- Lighting: Bright, well-placed lighting is essential in a bathroom.
Curb Appeal Enhancements: Making a Great First Impression
First impressions matter, especially when it comes to selling a home. Enhancing your home's curb appeal can significantly boost its value and attract potential buyers.
- Landscaping: A well-maintained and attractive landscape can add significantly to a home's value. Consider adding fresh mulch, planting flowers, trimming trees and shrubs, and ensuring the lawn is healthy and green.
- Exterior Painting: A fresh coat of paint can make a dramatic difference in a home's appearance. Choose colors that are appealing and complement the style of the house.
- New Front Door: Replacing an old or outdated front door with a new, stylish one can instantly enhance curb appeal. Steel and fiberglass doors are popular choices for their durability and energy efficiency. According to the 2023 Cost vs. Value Report by Remodeling Magazine a steel entry door replacement recoups over 100% of its cost.
- Garage Door Replacement: According to the same report a new garage door can recoup almost all of its cost at 102.7% making it a great choice for those looking to sell.
Energy-Efficient Upgrades: Saving Money and Adding Value
Energy-efficient upgrades not only reduce your utility bills but also make your home more attractive to potential buyers.
- High-Performance Windows: Replacing old, drafty windows with energy-efficient models can improve comfort, reduce noise, and lower energy costs.
- Insulation: Adding insulation to attics, walls, and crawl spaces can significantly improve energy efficiency.
- HVAC Upgrades: Installing a new, high-efficiency furnace or air conditioner can reduce energy consumption and improve indoor air quality.
- Solar Panels: Adding solar panels can significantly reduce or even eliminate your electricity bills and, in many areas, is becoming an increasingly desirable feature for homebuyers.
Deck Addition
Outdoor living spaces have become increasingly popular. Adding a deck provides a great space for entertaining guests and enjoying nice weather. According to Remodeling Magazine, a wood deck addition can recoup over 100% of its cost.
Five Mile Construction: Maximizing Your Renovation ROI
At Five Mile Construction, we understand that your home is one of your most significant investments. We're committed to helping you make smart renovation choices that enhance your home's value, beauty, and functionality.
Our team will work closely with you to:
- Assess Your Needs and Goals: We'll discuss your vision for your home, your budget, and your desired ROI.
- Recommend High-Value Renovations: We'll suggest renovations that are most likely to deliver a strong return on investment in your local market.
- Develop a Detailed Plan: We'll create a comprehensive plan that outlines the scope of work, budget, and timeline.
- Expert Craftsmanship: Our skilled craftsmen will execute your renovation project to the highest standards, ensuring quality and durability.
Contact us today to discuss your renovation plans and learn how we can help you maximize your ROI. Let's build value into your home together!

