Updated May 12, 2023
Want to improve your home in a way that will give you substantial returns? Not all home improvements are made equal, so it's important to plan your home remodel with this in mind. This guide will break down the home projects that give you the best return on investment (ROI) so you can determine which project is worth it and can not only improve your enjoyment of your home but also your home's value.
Table of Contents:
- Bathroom Remodel
- Kitchen Remodel
- Basement Remodel
- Attic Remodel
- Exterior Upgrades
- Other Home Upgrades
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Minor Bathroom Remodel: Average ROI of 100-105%
Major Bathroom Remodel: Average ROI of 90-95%
Bathroom remodels are easily one of the most—if not the most—lucrative home improvement projects. Minor bathroom remodels, which cost an average of $3,000-$12,000, have the highest average ROI of 100-105%. Minor bathroom remodels typically involve non-invasive work, like painting, replacing the toilet, fixtures, and in some cases the cabinetry or flooring, and other minor design changes.
Major bathroom remodels, which cost an average of $12,000-$35,000+, have a slightly lower yet still impressive 90-95% ROI. Major bathroom remodels typically involve more invasive work, like replacing everything, including the tub and shower, and relocating plumbing and electrical in many cases.
While minor bathroom remodels are the most lucrative, major bathroom remodels are still very beneficial to a home's overall value. If you're looking for the most valuable home improvement project, remodeling your bathroom(s) is the best place to start.
- 5 Ideas for Small Bathroom Remodels
- How to Budget Your Bathroom Remodel and Save Money
- Debris Disposal Options for a Bathroom Remodeling Project
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Minor Kitchen Remodel: Average ROI of 95-100%
Major Kitchen Remodel: Average ROI of 90-95%
Kitchen remodels are another highly-lucrative home improvement project. Minor kitchen remodels, which cost an average of $1,000-$20,000, have an ROI of 95-100%. Minor kitchen remodels generally involve painting, upgrading cabinet hardware, and replacing the sink/fixtures and appliances in some cases.
Major kitchen remodels cost $20,000-$50,000+ on average and have a slightly lower ROI of 90-95%, but this return on investment is still extremely substantial. Major kitchen remodels typically involve more invasive updates, like replacing cabinetry, relocating plumbing and electricity, changing the kitchen's layout, replacing countertops, and upgrading appliances and materials.
Minor kitchen remodels offer a higher return on investment than major kitchen remodels, but both projects are considered some of the most lucrative home improvement projects a homeowner can complete. If your kitchen is outdated or you simply don't enjoy spending time in it, then a kitchen remodel is an extremely worthwhile project to start.
- Stop Putting Off Your Kitchen Remodel—Get Started Today!
- Top 5 Go-To Tips for Budgeting Your Kitchen Remodel
- How Kitchen Cabinets Are Installed
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Basement Remodel: Returns an average of 85-95%
Basement remodels are another extremely beneficial and valuable home improvement project. Basement renovations cost an average of $5,000-$10,000 and have an average ROI of 85-95%. Remodeling a basement can involve several different things, including adding walls, installing flooring, performing electrical work, installing lighting, and painting.
If you're adding more luxury features to your basement, like installing a home theater, home bar, golf simulator, or using more high-end materials, you can expect your basement remodel cost to increase.
Remodeling a basement is an extremely valuable project. A finished basement not only makes your home more beautiful, it also increases your home's square footage, both of which have a positive effect on your home's value.
- Upgrade Your Basement for Less
- A Step-by-Step Guide to Basement Cleanouts
- How to Hire a Basement Remodel Contractor
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Attic Bedroom Conversion: Returns an average of 90-95%
Converting an attic to a livable space is another home improvement project with a high ROI. Costing $8,000-$30,000 on average, converting an attic into a bedroom, home office, or adding a living space and bathroom to the attic is a financially worthwhile project to consider. The average cost to remodel and convert an attic will go up if plumbing and electrical need to be installed or relocated.
If you have an unfinished attic and you're looking for a way to increase your home's square footage, increase your home's value, and maximize your return on investment, remodeling your attic is a great project to consider.
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Landscaping: Returns an average of 100%
Deck/Patio/Porch Addition: Returns an average of 85-95%
Your home's curb appeal and its exterior appearance have a significant impact on your home's value, making exterior upgrades worthwhile projects to consider. Landscaping offers an average of 100% ROI, making it an extremely valuable home improvement project. Costing as little as a $200-$500 or less, adding new plants and flowers, planting grass seed, and keeping your yard and landscaping clear of debris and looking neat and tidy goes a long way to boost your curb appeal and your home's overall value. If your landscaping is in need of a serious overhaul, the cost to improve it will increase, but its impact will increase as well.
Replacing an old deck, patio, or porch is another exterior upgrade that has a high ROI of 85-95% on average. Wood deck removal and replacement costs an average of $25-$50 per square foot, including labor and debris removal. The cost to remove and replace a concrete patio costs $10-$25 per square foot, including labor and debris removal. If you don't have an existing deck, patio, or porch to remove and you're only looking to install one, this cost will decrease but the benefits do not.
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Other Home Upgrades
Floor Remodel: Returns an average of 85-95%
Entry Door Replacement: Returns an average of 85-95%
Replace Windows: Returns an average of 85-90%
Additional home upgrades that are considered highly valuable and worthwhile include remodeling your home's floors, replacing your home's entry door(s), and replacing your windows.
The average cost to remove old flooring and install new flooring costs $8.50-$12.50 per square foot on average, including the cost of labor, materials, and debris disposal. With an average ROI of 85-95%, remodeling your floors can transform your home's interior and boost its value quite a bit.
The cost to replace an entry door is between $450-$1,500 including labor, materials, and old door disposal. Of course, the type of door you're installing, where you live, and who you hire to replace your door will have an impact on cost. With an average ROI of 85-95%, entry door replacement is a relatively inexpensive way to change your home's exterior appearance and boost curb appeal.
Window replacement costs $180-$2,100 on average per window, including labor and disposal. Upgrading your windows comes with many positives, including an 85-90% ROI, reducing energy costs, boosting your home's curb appeal, and improving the interior appearance of your home as well.
- How to Remove Different Types of Flooring
- Why You Should Hire a Professional to Remove Your Floors
- How Much Does Floor Removal Cost?
If you need to hire a demolition or remodeling contractor to assist you with any of these projects, Hometown can help! We make it easy to find local demolition contractors offering the services you're looking for, get answers to common remodel project questions, and request quotes from multiple local contractors with the click of a button so you hire the best person for the job without overpaying.