Understanding Renovation ROI
Which Renovations Have the Best ROI?
According to the 2024 Cost vs. Value Report from Remodeling Magazine, exterior improvements tend to have the highest ROI. Garage door replacement recoups 194% of costs, manufactured stone veneer returns 153%, and a minor kitchen remodel recovers about 96% of its cost. Major kitchen remodels return roughly 67%, while bathroom additions return about 57% [1].
Kitchen Renovations
A minor kitchen remodel (new countertops, cabinet refacing, appliance upgrades) typically costs $15,000-$30,000 and returns 80-100% of the investment. Major kitchen remodels ($50,000-$100,000+) return less percentage-wise but can significantly increase absolute value. Focus on timeless finishes, quality appliances, and functional layout improvements.
Bathroom Renovations
Bathroom remodels cost $10,000-$35,000 on average and return 60-70% of costs. Midrange bathroom remodels perform better than upscale ones from an ROI perspective. Focus on updating fixtures, improving lighting, and modernizing tile. Adding a bathroom where none exists can return 80-130% depending on the market.
Exterior and Curb Appeal
Exterior projects consistently rank highest for ROI. New siding returns 75-90%, window replacement returns 65-75%, and a new front door returns 75-100%. Landscaping improvements return 100-150% and are among the most cost-effective upgrades. First impressions matter enormously in real estate [2].