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Thinking about sprucing up your home? Whether you're planning to sell soon or just want to enhance your living space, remodeling can be a great investment. But not all projects offer the same return—especially since home repair costs have risen 40% since 2019.
I know remodeling costs today can be disheartening, but the experts at Zonda, a housing market research firm, just released their 2024 Cost vs. Value Report, and it's packed with insights to help you maximize your return on investment (ROI).
Curb Appeal Is King
When it comes to boosting your home’s value, exterior improvements are where it's at. According to Zonda, eight out of the top ten projects with the highest ROI are exterior upgrades.
Why? Because first impressions matter. A home with great curb appeal can stand out in the market, attracting more buyers and potentially selling for a higher price.
According to Clay DeKorne, Zonda’s chief editor, exterior replacement projects continue to make the most sense when it comes to adding resale value. In today’s market, characterized by higher mortgage interest rates and homeowners with significant equity, these projects stand out for their high ROI.
Cost vs. Value: National Average for Home Remodeling Projects
Below are all of the home remodeling projects that Zonda analyzed for its report, ranked by highest return on investment.
Top 3 Projects with the Highest ROI
This year’s report shows that the hottest projects for maximizing your ROI are actually the "unsexy" ones – the things that maybe don't grab headlines but definitely grab buyers' attention.
Just take a look at the top three on the list, each of which has an ROI well over 100%.
- Garage Door Replacement: 194% ROI. This project tops the list, almost doubling its return from last year. A new garage door can dramatically improve your home’s exterior look, making it more attractive to buyers.
- Steel Entry Door Replacement: 188% ROI. Replacing your front door with a steel one doesn’t just boost security; it also enhances the overall appearance of your home. It’s a simple upgrade with a significant payoff.
- Manufactured Stone Veneer: 153% ROI. Adding stone veneer to your home’s exterior can give it a luxurious and durable look. This upgrade is not only stylish but also highly valued by homebuyers.
For those looking for small projects with a big impact, doors are a great place to start.
"A new garage door or new entry door can make a pronounced difference," says Todd Tomalak, principal of Zonda Advisory. "It could be the thing that makes one house stand out against all the others, making the home worth a higher price."
Of course, there are other not-so-glamorous upgrades that can add value. Things like a new roof, windows replacement, and HVAC conversion also made Zonda’s list.
Key Takeaway
While a luxurious kitchen remodel might be your dream, the data suggests it won't necessarily pay off as much when it comes to resale value. That doesn't mean you can't enjoy a new kitchen! But if you're focused on maximizing your return on investment, target those exterior improvements and strategic interior updates first.
Ready to get started with some upgrades but don’t know where to start? I have a contact list full of trusted vendors in the area, pre-vetted for quality and affordability. These are the folks I call on myself, and I'm confident they can help you achieve your home improvement goals!
Just text me at 854.205.6626 for my top recommendations!
Curious about your home's value and what's happening in your neighborhood?
Get in touch. National numbers are a great measuring stick to see how the overall economy and housing market are doing, but they don’t account for local home values and your personal financial situation.
