Top 10 Home Renovations with the Highest Return on Investment for 2019
Which home project has the highest returns? We listed ten that have the highest ROI.
Home renovation projects can be both exciting and overwhelming. You might spend weeks uncertain about what to do with your outdated kitchen. Should you just install new appliances or go even further with Cambria quartz countertops paired with beechwood cabinets?
Inspiring designs jump at you from out of their shiny, crisp pages of Better Homes and Gardens, but you may be a budget-minded homeowner who knows that these picture-perfect spaces can sometimes cost more than they're worth.
Remodeling is undoubtedly an expensive process, but you should not let costs discourage you. There is value in upgrades. For one, remodeling can make you feel more at home. Secondly, it increases your home's value if you do it right. A good metric to evaluate the worth of a project is its return on investment (ROI). A modest kitchen upgrade is far more expensive than refinishing hardwood floors, yet both will retain their value and provide high returns when you sell your house. Will upgrading to a gourmet kitchen yield similar returns? Probably not, but it depends on the homes in your neighborhood.
Remodeling—an online website and magazine that publishes essential insights for residential, commercial, and construction industries—recently released the annual Cost vs. Value report. The report identifies key trends in remodeling projects across the U.S. and compares costs to ROIs.
We collected the top 10 home renovations with the highest return on investment for 2019. When it’s time to renovate your home or rental property, consider these projects that give you more bang for your buck. Higher values indicate that their costs are more likely to be recouped when it's time to sell.
Related: Rental Property Repairs vs. Improvements
Top 10 Home Renovations with the Highest ROI
These are national averages, so be sure to check your own state for more specific figures.
1. Garage Door Replacement
- Cost: $3,611
- Resale Value: $3,520
- Cost Recouped: 97.5%
Exterior replacements, such as garage doors, have high ROIs because they retain their value and are relatively inexpensive to install.
2. Manufactured Stone Veneer
- Cost: $8,907
- Resale Value: $8,449
- Cost Recouped: 94.9%
Stone veneers resemble natural stone but cost less. They help boost your home's curb appeal, which is crucial to resale value.
3. Minor Kitchen Remodeling
- Cost: $22,507
- Resale Value: $18,123
- Cost Recouped: 80.5%
An upgraded kitchen is a popular value-add, but it has a lower ROI compared to an exterior replacement. Personal tastes can affect the cost-to-value ratio of a remodeling job. Choose a design that appeals to a broad market before renovating your kitchen if you intend on selling your home quickly.
4. Wooden Deck Addition
- Cost: $13,333
- Resale Value: $10,083
- Cost Recouped: 75.6%
A simple deck design attracts prospective homebuyers. Wooden decks cost less and have a higher ROI than decks made of composite material.
5. Siding Replacement
- Cost: $16,036
- Resale Value: $12,119
- Cost Recouped: 75.6%
Similar to stone veneers, new vinyl siding also contributes to curb appeal and increases a home's value.
6. Entry Door Replacement
- Cost: $1,826
- Resale Value: $1,368
- Cost Recouped: 74.9%
Steel doors are energy-efficient because they have higher insulating value. In addition to being low-maintenance, they provide better security than wood and fiberglass doors.
7. Window Replacement
- Cost: $16,802
- Resale Value: $12,332
- Cost Recouped: 73.4%
Vinyl windows are more affordable and easier to maintain than their wooden counterparts. They are also energy-efficient, which appeals to many homebuyers.
8. Grand Entrance
- Cost: $8,994
- Resale Value: $6,469
- Cost Recouped: 71.9%
A grand entrance enhances curb appeal and makes a profound impact on prospective homebuyers. As the focal point of a house, a grand entrance with the "wow" factor can pay back in the resale value of the home.
9. Roofing Replacement
- Cost: $22,636
- Resale Value: $15,427
- Cost Recouped: 68.2%
Homeowners can expect to recover 68% of the installation cost. New roofs add curb appeal and make a property more energy-efficient.
10. Bathroom Remodel
- Cost: $20,420
- Resale Value: $13,717
- Cost Recouped: 67.2%
Homeowners can expect a good return on bathroom remodeling, especially in areas where other homes have at least two bathrooms.
Final Word
Remodeling or making significant improvements can increase the value of your home. Remember, if you own a rental property, the cost of these improvements can be claimed on your taxes and be recovered through depreciation. Use the Tellus app to keep track of these expenses and make tax season a breeze.
Related: The Best Rental Property Listings Are Like Tinder Profiles
Related: Attracting Millennial Renters: 5 Tips for Landlords
