The Best Return on Investment for Home Improvement Projects
Before picking up a hammer or calling a contractor, every homeowner asks: Will this pay off? Whether you're preparing to sell or building long-term equity, not all home improvements are equal. Some projects recoup a fraction of their cost; others return more than you invest. After years of helping homeowners transform spaces, here's our breakdown of the improvements with the best return on investment.
1. Hardwood Flooring Installation or Refinishing
We may be biased, but the numbers support us. The National Association of Realtors finds refinishing hardwood floors can recover up to 147% of their cost at resale, among the highest-ROI projects. New hardwood installation follows at about 118%. Buyers list hardwood floors as a top priority, while outdated carpet is a common deal-breaker. If your floors are worn or dated, this is the most impactful pre-sale upgrade.
2. Minor Kitchen Remodel
A full renovation rarely pays off, but a minor kitchen remodel — cabinet refacing, new hardware, updated countertops, and modern fixtures — typically recoups 80–85% of costs. Kitchens are the heart of the home, and buyers are willing to pay more for fresh, functional spaces.
3. Garage Door Replacement
This one surprises homeowners every time. Replacing an outdated garage door consistently ranks among the top ROI projects in Remodeling Magazine's annual Cost vs. Value Report, often returning 90–95% of the investment. It's pure curb appeal — and first impressions drive offers.
4. Entry Door Replacement (Steel)
Replacing an old door with a new steel entry door is low-cost and returns about 88% of its value. Buyers also appreciate improved energy efficiency and security, both of which translate to perceived value.
5. Deck or Outdoor Living Addition
As outdoor living continues to trend, a well-built wood or composite deck can return 65–75% of costs while significantly expanding your home's usable square footage. In competitive markets, outdoor spaces often tip the scales in favor of one listing over another.
The Bottom Line
Smart improvement isn’t about spending most — it’s about spending strategically. The projects above all enhance livability and signal quality to future buyers. Consult professionals who know your local market’s values before renovating.
Not sure where to start? Start from the ground up.