A renovation project can be just the thing to bring some creativity into your home—all the while making it more enjoyable to live in and more valuable for resale. If you’re wondering what adds the most value to a home, keep scrolling to learn the best home improvements for your return on investment (ROI) and which ones to avoid that decrease home value.
Between high interest rates and inflation eating into discretionary spending, more and more homeowners are choosing renovations over buying a new home. In fact, according to recent research from Discover Home Loans, over 55% of homeowners will renovate rather than purchase. However, of those renovators, 84% are doing so to increase their home’s value as opposed to making it more personalized.
When you view home renovations as an opportunity for profit, you should focus your efforts on the best home improvements over current aesthetic trends.
Quick Snapshot: Top Home Improvements at a Glance
When it comes to the best home improvements for ROI, you can choose from a range of projects. However, they often fall into one of three categories: curb appeal upgrades, kitchen or bath updates, and energy efficiency improvements. Statistically, landscaping, front door replacement, and window replacement are often among the top options for achieving the highest ROI.
What Determines “Best” in Home Improvements (Cost, ROI, Utility, Buyer Appeal)
Determining which improvements are best depends on two factors: the cost of the renovation and how much it increases your home’s value. For example, if you spend $10,000 on new landscaping and it adds $9,000 to your home’s value, the project has a 90% return on investment (ROI). In other words, you’ve recouped 90% of the renovation costs.
Here’s a simple formula to follow:
(Renovation cost/home resale increase amount) x 100 = % ROI
When undertaking a renovation project, you have to operate on assumptions and understand that all ROI estimates involve some uncertainty. The margin of variance is the difference between your projected return on investment and the actual amount you recoup. That’s because ROI can be influenced by factors such as: how appealing your renovations are to a broad range of buyers, the quality of workmanship, material and labor costs, and overall market conditions.
Even with these variables, certain renovations have consistently delivered excellent ROI over the years, even with varying margins.
8 Renovations That Increase Home Value
| Improvement | Average Cost | Resale Value | ROI |
|---|---|---|---|
| Garage Door Replacement | $4,672 | $12,507 | 268% |
| Entry Door Replacement | $2,435 | $5,270 | 216% |
| Siding Replacement (Fiber-Cement) | $21,485 | $24,420 | 114% |
| Kitchen Remodel (Midrange) | $28,458 | $32,141 | 113% |
| Deck Addition (Wood) | $18,263 | $17,323 | 95% |
| Bathroom Remodel (Midrange) | $26,138 | $20,915 | 80% |
| Window Replacement (Vinyl) | $22,073 | $16,657 | 76% |
| Basement Remodel | $52,012 | $36,905 | 71% |
1. Garage Door Replacement
Curb appeal is often a major factor in the best ROI home improvements. That’s because it increases your home’s value while improving how your home looks on the outside. This is part of the reason why garage door replacement is the number one ROI improvement you can make.
Per The Journal of Light Construction (JLC), homeowners can recoup over 268% of the cost of replacing their garage door. That means you’ll almost be doubling your improvement investment.
2. Entry Door Replacement
Upgrading your entryway can be one of the most impactful renovations for your home, as an entry door is one of the first things buyers will notice, making a lasting impression — and it’s one of the simplest renovations on this list. Improving your home’s curb appeal could significantly increase its value by at least 7%, according to a study from The Journal of Real Estate Finance and Economics. According to Zonda Media, a housing market research and analytics firm, the cost recouped (ROI) for an entry door replacement project is 100.9% or 216% for a steel entry door replacement, per the JLC.
One of the most popular designs for entryway upgrades in 2025 is steel or custom iron doors. At Clark Hall, we offer three main styles for custom iron front doors: ornate, traditional, and modern, which are fully customizable. Iron doors are a great aesthetic investment, require low maintenance, and can produce a great ROI whether or not you sell your home. To learn more, explore our Custom Iron Doors.
3. Siding Replacement (Fiber-Cement)
Replacing your home’s siding is a major project, but it often delivers impressive returns. With an ROI of over 100%, this renovation can significantly boost your home’s value. Depending on the material of your home’s original siding, this outward-facing part of the home typically lasts around 30 years. So replacing it not only enhances your home’s condition but also spares the next homeowners from having to tackle the project anytime soon.
Not only that, but updating the siding can give your home a whole new look. And curb appeal is always something to consider when making home renovations to improve your home’s value.
4. Kitchen Remodel
According to our research, the two types of rooms that score as major selling points for houses are kitchens and bathrooms. The JLC reports a midrange kitchen remodel ROI of 113%. Evaluate whether a few new appliances would suffice before taking everything out and starting from scratch.
Start by replacing old appliances, like your refrigerator, with new ones. A touch-up of paint or replacement of old hardware can give your cabinets an updated look that will go a long way. We suggest removing a wall to create more space if you opt for an overhaul. Note: A kitchen with ample space and good lighting is a major enticement to home buyers, so creating a well-lit, open concept could be a huge win.
Have questions about entry door replacement and your home’s value? Contact us!
5. Deck Addition (Wood)
Adding a deck to your home could be the unique selling point a buyer was looking for. Whether it’s a patio, porch, or simple deck addition, creating an outdoor space adds a whole new level of hospitality to your home. According to Extra Space Storage, well-designed patios not only add 8-10% to home value but also deliver an ROI of over 80%.
Clark Hall also offers patio doors to elevate your entertaining space. Aside from beautiful, clean lines and thin frames, our patio doors also feature professional-grade weatherstripping, insulation, and welds.
6. Bathroom Remodel
Similar to remodeling your kitchen, your bathroom may require minor tweaks or a major overhaul. According to the JLC, a bathroom remodel has an impressive ROI of 80%. Whether you’re making minor or significant renovations to your bathroom space, we recommend focusing on this area first, over minor projects in each bedroom.
For example, swapping out old shower heads for newer models or updating the lighting to make the space brighter can do wonders. Other options include painting the vanity, updating the hardware, or replacing the countertops to give the space an updated look.
7. Window Replacement (Vinyl)
Replacing windows in your home is an excellent way to recoup renovation spending. Depending on the type and style, you could see a major ROI. Per the JLC, vinyl windows are the most recouped investment, with an ROI of 76%.
In addition to resale value, replacing old windows with energy-efficient ones could also benefit your taxes. The IRS states that installing exterior windows and skylights can result in up to $600 in tax credits through 2032. Luckily, Clark Hall offers energy-efficient, custom windows to enhance the beauty and efficiency of your home!
8. Basement Remodel
One of the best ways to increase a home’s value is by adding more livable space. Renovating an attic is a great way to take advantage of extra space. These upgrades could easily transform parts of the home that might be best left unseen into a unique selling point.
Another high-impact improvement is converting a basement into a functional room. This upgrade not only adds valuable square footage but also creates an appealing feature for future home buyers. In the meantime, it also provides extra usable space for current homeowners.
3 Projects That Can Decrease Home Value
1. Upscale Master Suite Addition
While you may love your mahogany bookcase and bespoke mantle, an elaborate layout is a turn-off to buyers, indicating expensive upkeep and maintenance. Or, they may also opt to remove them altogether. Upgrades like this are best for homeowners intending to stay for the long haul.
2. Upscale Bathroom Addition
This is not to be confused with our suggestion of a bathroom remodel. In this instance, adding expensive luxury appliances to your bathroom rather than modest additions may have a negative effect, as the new homeowner will feel more of a sense of expense than luxury. Remember, keep your renovations within the range of your neighbors so as not to become the most expensive on the block—in other words, it will be much more difficult to sell.
3. Garage Conversions
Although converting garages can add square footage to your home’s living area, creating an accessory dwelling unit (ADU) will not increase your home’s value. Most buyers want garages—and garages weren’t designed or built for living in, so they will most likely need major repairs to make them livable. It may be a cool experience, but overall, a poor ROI.
Other Factors to Consider
Swimming Pools
You might be asking, what about a swimming pool? This point is tricky to determine, as it ultimately depends on the climate you live in. For example, the ROI for a swimming pool in a Florida home is going to be much higher than that of a home in Ohio. Also, some prospective buyers may see a pool as an additional energy or insurance cost.
Resale Value
And, when it comes to what impacts home resale value, your home’s value is based on what buyers in the market are willing to pay for your home—but there are many factors to consider. It’s a good idea to review the sale prices of other homes in your neighborhood as a comparison point. Comparable homes are often referred to as “comps” which can be found by looking for similar houses to your own in appearance, location, and distance.
Home Appraisals
Home appraisers will look at your home’s size, usable space, and the age and condition of your plumbing, electrical, roof, and more. While upgrades and updates usually signal increased value, keep in mind that not all home improvement projects are viewed equally.
Prioritization Checklist for Home Improvements
When setting your home improvement priorities, it’s important to balance both safety and functionality. For instance, it may make sense to start with smaller upgrades, like replacing windows or doors, before undertaking ones that could disrupt your daily life, such as a full bathroom or kitchen remodel.
Keep in mind that while these projects have a high average ROI nationwide, the actual return can vary. Factors such as project costs, material prices, and local housing market conditions at the time of sale all play a role in determining how much value you ultimately gain.
Below are the average timelines and levels of disruption for each high-ROI project to help you plan before getting started:
| Project | Timeline | Disruption |
|---|---|---|
| Garage Door Replacement | 2-6 hours | Low – limited/no garage access during install |
| Entry Door Replacement | 2-4 hours | Low- limited/no access to entry during install |
| Siding Replacement (Fiber-Cement) | 5-10 days | Medium – can be quite noisy, but is external to the home |
| Kitchen Remodel (Midrange) | 6-12 weeks | High – limited/no access to the kitchen at points of the remodel. Very noisy in the home. |
| Deck Addition (Wood) | 1-4 weeks | Low – limited access to parts of the home’s exterior and noise outside |
| Bathroom Remodel (Midrange) | 2-4 weeks | High – limited/no access to the bathroom at points of the remodel. Very noisy in the home. |
| Window Replacement (Vinyl) | 1-2 hours per window | Low – minor noise |
| Basement Remodel | 4-12 weeks | High – limited/no access to the basement area during parts of the remodel. Very noisy inside the home |
Planning for Long-Term Value Growth
In addition to keeping up with regular home maintenance, the next best thing you can do for sustained value is renovate with ROI in mind. Renovations that enhance curb appeal or energy efficiency tend to deliver the strongest returns. Rather than focusing on fleeting design trends, prioritize upgrades that consistently boost your home’s resale value.
National statistics provide an excellent benchmark for understanding these best home renovations, such as front door replacement or bathroom remodels. Still, it’s essential to remember that there will always be a margin of variance. Even with the highest quality labor and parts, the exact ROI can only be determined after a home’s sale is finalized.
Looking to upgrade your entryways? As the experts in custom iron door design, Clark Hall provides an end-to-end white glove experience that allows you to create a lasting first impression — an impression that also helps increase the value of your home.
Contact us to schedule a consultation at one of our showrooms, where you’ll get a chance to see our doors up close. And, before you connect, be sure to check out our blog “How Custom Iron Front Doors Increase Home Value” for even more information.
Frequently Asked Questions
What home improvement adds the most value?
The specific statistics will depend on where you live, but typically front door replacements and kitchen and bathroom upgrades have the highest positive ROI—they serve as great indicators to the buyer that the most important parts of the house are in great shape. And when it comes to the front door, curb appeal plays a large role in increasing home value as it is the first thing a buyer sees in a home visit — in fact, most people will decide whether or not they want to buy a home in the first few minutes of looking at one.
What doesn’t add value to a house?
A key takeaway is that water features like hot tubs and pools usually don’t add home value and can cause disinterest from potential buyers. Additionally, any renovations that limit room space or are too luxe will detract value.
What do appraisers look for to add value?
Home appraisers will look at factors such as square footage, materials, amenities, and condition, and evaluate these factors against comparable properties, or “comps,” that have recently sold in the area.
What is the 30% rule for renovations?
Because home renovation ROI can vary, a general rule is to avoid spending more than 30% of your home’s current value on renovations. This guideline helps prevent overspending and provides a comfortable margin for fluctuations in costs or market conditions, while still supporting a strong return on your investment.
Is $50,000 enough to renovate a house?
It really depends on what you want to renovate. There are projects such as landscaping, a bathroom renovation, new entry doors, and cosmetic updates to enhance your home’s curb appeal that can be done for $50,000.
However, a whole-home renovation or renovations that require significant structural changes, such as removing walls or changing electrical systems, are likely to cost significantly more than that.
What rebates and tax credits are available in 2026?
Unfortunately, the Energy Efficient Home Improvement Credit, a federal government tax incentive in the United States for energy-efficient home improvements, is set to expire at the end of 2025. However, many states and local governments have their own rebates and tax credits you can consider. The easiest way to see what’s available near you is to utilize the Database of State Incentives for Renewables and Efficiency (DSIRE) database.
Can DIY work improve ROI?
It depends on the homeowner’s skill set, but yes, DIY work can improve ROI. Simple home upgrades or small changes, such as a fresh coat of paint, replacing light fixtures and ceiling fans, or swapping hardware, can improve a home’s aesthetic and resale value.
However, more complex projects are best left to professionals. Why? Well, if the renovation isn’t done correctly, it can be detrimental to your home value.
How do local climate conditions affect ROI?
Home renovation ROI can be deeply impacted by local climate conditions, particularly when the renovations are done for energy efficiency. In homes in climates with extreme temperatures or weather, for instance, installing new energy-efficient doors and windows can help insulate the house and protect it from the elements. ROI can also be affected if renovations are done during the busy season when labor or material costs are higher.
