Home improvements with the best return on investment

Renovating your home can be a good investment. However, not all renovations boost your home’s sales price. For example, research from data analytics firm Zonda Home shows that replacing your garage door is one of the best return on investment home improvements you can do. However, other remodeling projects, like installing new siding, may not have the same impact on the overall value of your home. 

If you are considering upgrades to your living space, here are the best roi home improvements to consider.

Best return on investment home improvements

The remodeling ideas listed below are organized in order of home improvement projects with the highest return on investment. This data comes from the 2024 Cost vs. Value Report from Zonda Home.

Garage door replacement

Interestingly, a garage door replacement is the home improvement with the biggest return on investment. In fact, replacing your garage door has a 193.9% return.

This is likely because your garage door is a part of your home's curb appeal. Curb appeal, or how your house looks from the outside, is the first impression potential buyers have when coming to tour your space. 

That’s why replacing a new garage door, which costs around $4500 on average, can be a worthwhile investment.

Entry door replacement

Similar to a garage door, replacing your entry door also has a high return on your investment. If you replace your front door with a steel door, the data shows you’ll get a 188% investment ROI on average.

While you’re updating your front door or garage door, take the time to update your flowerbeds or front yard landscaping too. You don’t have to spend thousands of dollars on outdoor upgrades to make a positive impact on buyers. A new door paired with fresh plants and a well-maintained yard can go a long way to showing potential buyers that you maintained your home.

Manufactured stone veneer

Adding a stone veneer to your home is a very popular design choice that resonates with many buyers. Although it can be pricey, it yields a 153% return on investment.

To get the best price on stone veneer, contact several different contractors to get quotes. There is also a wide range of veneer choices that range from budget options to higher-end selections.

Minor kitchen remodel

When you sell your home, you might not have time for a large remodeling project. The good news is that you don’t have to complete a major kitchen remodel to make an impact. 

Major kitchen remodels typically have a 60% cost recovery according to the National Association of Realtors. However, full kitchen replacement projects are also costly and take significant time. After all, contractors have to take your kitchen down to the studs and install all new cabinetry, appliances, countertops, and more. This can take months, which might not be an option if you’re ready to sell your home.

If you choose a minor kitchen remodel instead, you only update a few kitchen features to improve the overall value of your home. That might mean getting new appliances, backsplash, countertop, or new doors for your cabinets. Small kitchen updates can be worth it, as research shows they have a 96% return on investment.

Siding replacement

If the siding on your house is peeling or chipping, it’s a good idea to replace it before listing your house on the market. 

Buyers can view damaged siding and think that you haven’t cared for your home. Fortunately, replacing the siding not only improves your curb appeal, but it also has an 88% return on investment.

Midrange bathroom remodel

To buyers, bathroom remodels are a significant undertaking. So, updating your bathrooms before listing your house can attract more offers, even in a challenging real estate market.

You can remodel your bathroom with affordable materials or with high-end materials, but research shows that mid-range bathroom remodels can have a 74% return on investment. Not only that, but buyers will be relieved that they don’t have to complete a full bathroom renovation when they move in.

Window replacement

Another home upgrade that has a positive return on investment and lasts long term is replacing windows. Replacing wood windows has a 62.9% ROI, and replacing vinyl windows has a 67.1% ROI. 

Another benefit of replacing windows is that it can improve your home's energy efficiency, which in turn can reduce your utility bills.

Roof replacement

If your home needs a new roof, you might be wondering whether or not it’s worth it to replace it. New roofs can cost between $30,000 and $50,000 on average. For that reason, some homeowners might not know whether or not it’s advantageous to complete this update before listing their house for sale. 

The data shows that replacing your roof's asphalt shingles has a 56.9% rate of return, and replacing metal roofing has a 48.1% return. Though it is not as high a return as other improvements on this list, it could be worth it if everything else in your house is updated.

Budget-friendly DIY projects with good ROI

If you want to renovate your home on a budget, there are several DIY projects you can complete in a weekend.

Painting interior and exterior

One of the easiest ways to transform a space is with fresh paint. This is a project you can do yourself. Not only will it make your home feel newer, but it will also make it feel cleaner. You will need to purchase supplies, such as paint and paint rollers. However, the cost for supplies will be far less than hiring professionals to do the job.

Plus, according to the 2025 Remodeling Impact Report from the National Association of Realtors, painting one interior room is also one of the remodeling projects that brings homeowners the most joy. 

Updating light fixtures and hardware

Changing your light fixtures and swapping out hardware are easy, affordable upgrades. You can save more money by purchasing light fixtures secondhand and installing them yourself. Switching out a dated light fixture or updating cabinet knobs can instantly make a space feel more modern. 

If you want to impress buyers, you could also consider installing dimmer switches or smart home lighting solutions. That can make your home feel more high-end for a low price.

Improving storage solutions

According to an annual survey from Storage Cafe, 33% of Americans use self-storage, and 18% plan to rent a storage unit in the future. Because Americans have such a high demand for smart storage solutions, improving the storage in your home can make it more attractive to buyers.

This can be as simple as installing closet organizers or creating a built-in drop zone. Anything that can help buyers see that your home will make them more organized can be a good selling feature.

Enhancing curb appeal

Because the outside of your home is the first thing buyers see, enhancing your curb appeal is a smart idea. There are many DIY projects you can do, including gardening and light landscaping.

How to finance home improvements

Making home improvements can be expensive. If you need financing to complete updates, there are several options to consider.

• HELOC: A HELOC is a Home Equity Line of Credit. HELOCs work similarly to credit cards in that you can borrow what you need up to a certain limit. HELOCs often have more favorable interest rates than credit cards because your home is the collateral for the loan.
• Home equity loan: A home equity loan is another option if you want to pull equity out of your home to improve it. It’s similar to a HELOC because your home is the collateral. However, it differs because with a home equity loan, you get a lump sum upfront. You pay back the loan in equal installments for a set term.
• Cash-out refinance: A cash-out refinance is when you replace your current mortgage with a new, larger one, and withdraw the difference in cash. This only makes sense if you can secure the same or a lower interest rate than your current mortgage.
• HEI: HEI stands for Home Equity Investment. This is a partnership between you and a home equity investment company, which gives you cash in exchange for a share of your home’s future change in value. One benefit of an HEI is that there are no monthly payments.
• Home improvement loan: A home improvement loan is a type of personal loan that you can get without using your home as collateral. Since the loan is unsecured, interest rates may be higher than those for other types of financing.

Frequently asked questions

Here are some of the most common questions homeowners ask about the best return on investment home improvements. 

Which home improvements have the highest ROI?

Three of the top home improvements for ROI are garage door replacements (193.9%), entry door replacements (188%), and manufactured stone veneer (153%). In general, improving your curb appeal tends to have a better return on your investment than extensive interior remodeling. 

What is the 30% rule for home renovations?

The 30% rule for home renovations is a popular guideline for keeping home improvement spending in check. According to the 30% rule, you should never spend more than 30% of your home’s value on a renovation. For example, renovations on a $1,000,000 home should remain under $300,000. 

Is $50,000 enough to renovate a house?

Renovation costs vary greatly based on the location and value of your home, the extent of the improvements that you wish to make, and the quality of your materials. In most major metropolitan areas, $50,000 will not cover a total renovation. It will, however, let you make select improvements on the things that matter most to you and your family. 

What is the best way to get money for home improvements?

The best way to get money for home improvements depends on your unique priorities and financial situation. For some homeowners, a home equity financing tool such as a Home Equity Investment or a HELOC can be the right choice. Other homeowners are in the position to save up for their dream renovation, while some may qualify for government grants or other programs. 

Final thoughts

Improving your home, whether through DIY projects or a complete remodel, can increase its value. However, not all home improvements are created equally. Some, as mentioned earlier, provide a much higher return on your investment. 

That’s why it’s important to choose renovations that will have the biggest impact on improving your home’s overall value, especially if you plan on selling it soon. Of course, it’s always a good idea to consult with a local real estate agent before breaking out the hammers and paint supplies. Local agents can make recommendations and tell you what buyers in your area value.

Learn more about using a Home Equity Investment to finance your renovations.