The return on investment (ROI) for home improvements can vary depending on factors such as your location, the current condition of your home, and market conditions. However, some home improvements generally tend to offer better ROI compared to others. Here are some of the best ROI home improvements that often provide a strong return on investment:
- Hardwood Floor Refinish: Refinishing hardwood floors involves sanding down the existing finish, repairing any damage, and applying a new finish or stain. This process restores the appearance of the floors, making them look like new. Estimated Cost: $3-$5/SF. 147% ROI. Joy Score = 10
- New Wood Flooring: Installing new wood flooring typically involves adding entirely new hardwood or engineered wood planks to your home’s floors. This can improve the aesthetics and functionality of the space. Estimated Cost: $6-$20/SF – Installed. 118% ROI. Joy Score = 10
- Insulation Upgrade: An insulation upgrade involves adding or improving insulation in walls, ceilings, and floors to enhance energy efficiency and maintain a comfortable indoor temperature. This can reduce heating and cooling costs. Estimated Cost: $2,500. 100% ROI. Joy Score = 10
- Basement Conversion to Living Area: Transforming an unfinished basement into a living area typically includes adding walls, flooring, lighting, and heating/cooling systems to create functional spaces like a family room, home office, or extra bedroom. Estimated Cost: $30,000-$60,000 for mid grade finishes – based on 1,000 SF. 86% ROI. Joy Score = 9.7
- Closet Renovation: A closet renovation may involve reconfiguring the layout, adding storage solutions like shelves and drawers, or upgrading the closet’s organization to optimize its storage capacity. Estimated Cost: $3,000-$6,000. 83% ROI. Joy Score = 10
- Attic Conversion to Living Area: Converting an attic into a living area usually includes insulating and finishing the space, adding windows, and potentially creating rooms like bedrooms, home offices, or playrooms. Estimated Cost: $75,000-$125,000 – based on 500SF. 75% ROI. Joy Score = 10
- Complete Kitchen Renovation: A complete kitchen renovation involves gutting the existing kitchen and replacing everything, including cabinets, countertops, appliances, and flooring. It can modernize the space and improve functionality. Estimated Cost: $50,000-$80,000. 75% ROI. Joy Score = 9.8
- Bathroom Renovation: A bathroom renovation can include updating fixtures, tiles, and vanity, as well as making cosmetic improvements to enhance the aesthetics and functionality of the space. Estimated Cost: $15,000-$60,000. 71% ROI. Joy Score = 9.6
- Kitchen Upgrade: A kitchen upgrade typically focuses on specific improvements like installing new appliances, replacing countertops, or refinishing cabinets to refresh the kitchen without a complete overhaul. Estimated Cost: $45,000. 67% ROI. Joy Score = 9.8
- Add New Bathroom: Adding a new bathroom involves constructing a bathroom in a space that previously didn’t have one. This can enhance convenience and increase a home’s value. Estimated Cost: $40,000-$80,000. 63% ROI. Joy Score = 8.2
- Add New Primary Bedroom Suite: Adding a new primary bedroom suite may involve combining existing rooms to create a spacious bedroom with an attached bathroom and possibly a walk-in closet. This can provide more luxurious and private living quarters. Estimated Cost: $100,000-$200,000. 56% ROI. Joy Score = 9.5
ROI is according to NAR 2022 Remodeling Impact Report.
Remember that the actual ROI and Estimated Costs can vary greatly depending on the quality of materials, labor costs, and your local real estate and construction market. It’s advisable to consult with a local building contractor for a construction estimate. We adivse consulting with a real estate agent or appraiser to get a better understanding of which home improvements are likely to provide the best ROI in your specific area.
ROI and Joy Score are based on National Association of Realtors (NAR) 2022 Remodeling Impact Report