Evaluating the ROI of Common Home Renovation Projects

Thinking about updating your home? Whether you want to sell soon or simply boost your property's value, choosing the right renovation is key. Not every project delivers equal returns, and some can actually cost you more than they're worth. 

That's why understanding return on investment (ROI) before picking up the phone matters. At Vostok Construction, we help homeowners make smart, data-driven decisions that protect their investment and maximize their home's potential on the market.

Why ROI Should Guide Your Renovation Decisions

ROI, or return on investment, measures how much of your renovation cost you'll get back when you sell your home. A project with a 90% ROI means you'll recoup 90 cents for every dollar spent at resale. The gold standard? Projects that exceed 100% ROI, meaning they add more value than they cost. Every year, Remodeling Magazine's Cost vs. Value Report tracks exactly this — comparing the average cost of common remodeling projects against their resale value across many U.S. markets.

Not all projects are created equal — the data tells a very specific story about which upgrades give homeowners the biggest edge.

Exterior Projects: Where the Big Wins Happen

If you want the highest ROI, start outside. The 2024 Cost vs. Value Report found that nine out of the top ten highest-returning projects were exterior improvements. This makes sense: curb appeal is often the first thing a buyer sees, and first impressions drive offers. Leading the pack is garage door replacement, which delivers an extraordinary 194% ROI nationally — nearly doubling what homeowners spend on the upgrade.

Steel entry door replacement follows closely with a 188% ROI, making it one of the smartest and most affordable upgrades available. Adding manufactured stone veneer to the exterior rounds out the top three, coming in at a 153% ROI. These projects are relatively affordable, highly visible to buyers, and proven to move the needle on sale price. 

Partnering with a professional contractor like Vostok Construction ensures these upgrades are installed the first time correctly, protecting your investment from day one.

Kitchen Remodels: Scope Matters More Than You Think

The kitchen is often called the heart of the home, and buyers absolutely notice it. But the size of your remodel makes a dramatic difference in ROI. According to the 2024 Cost vs. Value Report, a minor midrange kitchen remodel — think updated surfaces, cabinet refreshes, and new hardware — delivers a 96% ROI. That's impressive, and it ranked as the only interior project in the top five highest-returning renovations of the year.

Major kitchen overhauls, however, tell a different story. A midrange major kitchen remodel returns just 49.5%, while an upscale major remodel drops to only 38% ROI. The lesson here is clear: strategic, targeted updates outperform lavish redesigns for resale value. Focus on what buyers see and feel immediately — countertops, appliances, cabinet faces — rather than tearing the whole room apart. Vostok Construction can walk you through exactly which kitchen upgrades make sense for your budget and goals.

Bathroom and Deck Renovations: Solid Middle Ground

Bathrooms offer solid returns when done right. A midrange bathroom remodel can recover around 70–74% of its cost at resale, making it a worthwhile project for homeowners looking to modernize the space. Just like with kitchens, going upscale tends to diminish returns, with high-end bathroom additions returning 46% of costs. Updated fixtures, fresh tile, and proper lighting go a long way without breaking the bank.

Outdoor living spaces are also worth considering. Wood decks return around 79% of costs, and composite decks come in at about 70%. These are popular additions because they expand usable living space and appeal to buyers who want to enjoy the outdoors. When planned and built with professional-grade materials and craftsmanship, decks can become real selling points that set your home apart from comparable listings in your area.

Projects That May Not Pay Off at Resale

It's just as important to know where not to overspend. Adding a primary suite addition — even at the midrange level — returns only about 35% ROI, and upscale versions return less than 24%. Adding a bathroom also underperforms, with both midrange and upscale additions returning around 33–35%. These projects require significant construction investment that the current resale market simply doesn't reward at the same rate.

Roofing projects also tend to show low ROI in the 2024 report, meaning they typically cost more than they return at resale. That said, these upgrades can still make sense if energy savings, home comfort, or structural integrity are the goal — they just shouldn't be counted on as value-boosting investments the way exterior updates or minor kitchen refreshes can be.

How Renovations Affect Market Competitiveness

ROI is only part of the picture. Renovations also affect how quickly your home sells and how many competitive offers you attract. According to real estate professionals surveyed for the 2024 Cost vs. Value Report, curb appeal consistently plays a defining role in how buyers price a home before they ever step inside. A well-maintained exterior signals a well-maintained interior — and that perception is powerful in a competitive market.

Renovation spend has also surged in recent years. According to Houzz research, the median spend on home renovations increased by 60% between 2020 and 2023, rising from $15,000 to $24,000. 

Buyers have higher expectations than ever, and homes that show well-executed, professional upgrades tend to attract stronger offers and shorter time on market. The right renovations don't just add numbers to an appraisal — they build confidence in buyers and make your home the one people remember.

How to Plan Renovations That Maximize Your Return

The best renovations are planned with the end goal in mind. If you're selling within a year, exterior improvements and minor kitchen updates offer the strongest and most immediate return. If you have a longer timeline of two to five years, you have more flexibility to invest in bathroom upgrades, decking, and other mid-tier improvements that buyers will appreciate. The key is matching your renovation scope to your timeline and local market conditions.

Professional execution also matters enormously. Poorly done renovations can hurt your home's value just as much as skipping them altogether. Permits, proper materials, and skilled craftsmanship are non-negotiable when the goal is adding lasting value. At Vostok Construction, we bring the expertise and professionalism to every project to ensure your investment is protected and your home reaches its full market potential. 

Ready to get started? Contact us today to discuss your renovation goals and build a plan that works for you.