You’ll Never Guess Which Home Improvement Project Will Increase Your Home’s Value the Most
It really pays off.
Any type of renovation or remodeling project will add some value to your home, and can be an upgrade to your lifestyle. (A bigger bathroom would make getting ready a lot easier and solve storage problems, that’s for sure!) But of course, not all renovations are the same and some add more value than others, which makes sense when you’re thinking about a paint job versus a full-scale kitchen remodel. And that number can factor into whether you want to spend that money on the reno or not.
Zonda Media (which owns trade publications like Remodeling) recently put out its annual Cost vs Value report for 2023, which details the home renovations that offer the best returns on investments. Overall, the team found that exterior replacement projects continue to offer a higher return on investment than interior discretionary remodels. The top project with the biggest ROI was heating, ventilation, and air conditioning (HVAC) electrification conversion—it’s both popular and has an ROI of 103.5%. These stats came from a survey of more than 6,000 realtors.
Notably, the report saw a plunge in the overall ROI numbers. The projects with the highest returns have stats over 100%, but projects with lower returns have dropped below 50%. The overall Cost-Value ratio is 34.8%, which is the lowest in the history of the report. This is due to the fact that the study was done in the fourth quarter of 2022, when “mortgage rates were rising, inflation was surging, and real estate sales were falling.”
Take a look at the top 10 national averages below. To see the full report go here, which also details ROIs based on region (like Pacific or Mountain).
Top 10 Home Renovations with the Highest ROI in 2023
1. HVAC Conversion/Electrification
Job Cost: $17,747; Resale Value: $18,366; Cost Recouped: 103.5%
2. Garage Door Replacement
Job Cost: $4,302; Resale Value: $4,418; Cost Recouped: 102.7%
3. Manufactured Stone Veneer
Job Cost: $10,925; Resale Value: $11,177; Cost Recouped: 102.3%
4. Entry Door Replacement/Steel
Job Cost: $2,214; Resale Value: $2,235; Cost Recouped: 100.9%
5. Siding Replacement/Vinyl
Job Cost: $16,348; Resale Value: $15,485; Cost Recouped: 94.7%
6. Siding Replacement/Fiber-Cement
Job Cost: $19,361; Resale Value: $17,129; Cost Recouped: 88.5%
7. Minor Kitchen Remodel/Midrange
Job Cost: $26,790; $22,963; Cost Recouped: 85.7%
8. Window Replacement/Vinyl
Job Cost: $20,091; Resale Value: $13,766; Cost Recouped: 68.5%
9. Bath Remodel/Midrange
Job Cost: $24,606; Resale Value: $16,413; Cost Recouped: 66.7%
10. Window Replacement/Wood
Job Cost: $24,376; Resale Value: $14,912; Cost Recouped: 61.2%