Top Home Improvements That Add the Most Value

Top Home Improvements That Add the Most Value

Home improvements can enhance both the functionality and aesthetic appeal of a property, but certain upgrades add more value than others when it comes to resale. Understanding which renovations yield the highest return on investment (ROI) can help homeowners make informed decisions that increase their home’s market value. Here’s a guide to the top home improvements that can significantly boost property value, backed by recent data on cost vs. value.

1. Kitchen Remodel

The kitchen is often considered the heart of the home, making it a focal point for many buyers. A mid-range kitchen remodel—such as updating cabinets, replacing outdated appliances, and upgrading countertops—can offer a substantial return. According to Remodeling Magazine’s 2023 Cost vs. Value Report, a minor kitchen remodel recoups an average of 71% of its cost upon resale.

Simple improvements, such as adding a fresh coat of paint, installing new fixtures, and upgrading lighting, can also make a kitchen more appealing without requiring a full remodel. Zillow reports that homes with updated kitchens tend to sell faster and for higher prices, as buyers prioritize move-in-ready properties with modern amenities .

2. Bathroom Renovation

Bathroom updates can provide a strong ROI, especially when they enhance functionality and visual appeal. Simple updates like new tile, updated fixtures, and fresh paint can give the bathroom a modern look without the need for a full renovation. On average, a bathroom remodel offers a return of about 60-70%, depending on the extent of the upgrades.

In 2023, data from the National Association of Realtors (NAR) found that bathroom renovations are among the top improvements that appeal to buyers, with energy-efficient fixtures and updated showers being particularly popular. For smaller budgets, even replacing outdated faucets, lighting, and vanities can add considerable value .

The Environmental Impact of Tiny Houses

3. Adding a Deck or Patio

Outdoor living spaces have grown in popularity, and adding a deck or patio can be a relatively low-cost way to increase property value. A new wood deck, for instance, has an ROI of around 65%, while a composite deck averages closer to 60%, based on Remodeling Magazine’s findings. These spaces add functional square footage to a home, appealing to buyers who value outdoor entertainment areas.

The American Institute of Architects (AIA) notes that homeowners increasingly prioritize outdoor improvements, especially in regions with warmer climates where outdoor spaces can be used year-round. Landscaping and adding seating or a fire pit can further enhance the appeal of these areas, making them inviting spots for relaxation or gatherings.

4. Replacing Windows and Doors

Energy-efficient windows and doors offer twofold benefits: they reduce energy costs and improve curb appeal. According to Energy Star, replacing old windows with energy-efficient models can save homeowners up to $500 annually on heating and cooling costs, making this an attractive selling point for eco-conscious buyers.

Remodeling Magazine’s 2023 report states that window replacements have an average ROI of 68%, while new steel entry doors offer about a 63% return. Updated windows and doors not only modernize a home’s appearance but also appeal to buyers looking for energy savings, which is increasingly important as energy costs rise .

5. Attic Insulation and Energy Efficiency Upgrades

Adding attic insulation is one of the most cost-effective improvements, offering an ROI of over 70% according to recent reports by Remodeling Magazine. Proper insulation helps reduce heating and cooling costs, making it a practical improvement with broad appeal. Energy efficiency upgrades like sealing air leaks, upgrading HVAC systems, and installing smart thermostats are also highly attractive to buyers, with studies from the Department of Energy showing that efficient homes sell faster .

With rising energy costs and growing environmental awareness, buyers are increasingly interested in homes with energy-saving features. Simple steps like adding insulation and upgrading to a more efficient HVAC system can add immediate value and attract a broader pool of potential buyers.

6. Basement or Attic Conversion

Converting an attic or basement into a functional living space, like an extra bedroom, office, or entertainment area, can significantly increase a home’s usable square footage. According to the National Association of Home Builders (NAHB), homes with finished basements or attics are highly desirable, especially in regions with limited living space.

An attic conversion offers an ROI of about 75%, while basement remodels offer returns in the 65-70% range. These projects are especially beneficial in high-cost housing markets where maximizing livable space is a priority. A finished basement can be particularly appealing to buyers looking for additional recreational or guest space.

7. Updating the Curb Appeal: Siding and Landscaping

First impressions matter, and updating a home’s exterior can significantly boost its market appeal. Replacing siding or adding fresh paint can modernize the look of a home, while adding landscaping elements like flowers, shrubs, and walkways creates a welcoming entryway. According to NAR’s 2023 Remodeling Impact Report, exterior projects have a high ROI, with siding replacements offering around 70% return and landscaping improvements yielding about 80% ROI .

Landscaping projects don’t need to be extensive to add value—simple tasks like adding mulch, planting seasonal flowers, and ensuring the lawn is well-maintained can make a big difference. Homes with attractive landscaping and clean, well-maintained exteriors tend to stand out in listings and draw more interest from buyers.

Conclusion

Investing in home improvements that boost value not only enhances living spaces but also increases resale potential. Key upgrades—such as kitchen and bathroom remodels, outdoor space additions, window replacements, energy-efficient updates, and curb appeal enhancements—provide the highest returns. Homeowners considering renovations should prioritize projects that balance cost with potential ROI to make the most of their investment, ensuring their property appeals to prospective buyers and stands out in a competitive market.

Staging your home effectively

References

1. Remodeling Magazine. "2023 Cost vs. Value Report: Home Improvement Projects and ROI." 2023.

2. Zillow. "Market Data on Home Improvement Projects that Add Value." 2023.

3. National Association of Realtors. "Remodeling Impact Report." NAR, 2023.

4. American Institute of Architects. "Trends in Outdoor Living Spaces and Home Design." 2023.

5. Energy Star. "Benefits of Energy-Efficient Windows and Doors." 2023.

6. Department of Energy. "Energy Efficiency and Home Resale Value." 2023.

7. National Association of Home Builders. "The Value of Finished Attics and Basements." 2023.

Looking for a comp? Explore homes near you at unrealestate.com/search.

Ready to sell? Start a listing for free today at unrealestate.com/sell.We'd love to hear your thoughts about this article and our blog.

Let us know how we did by completing the Unreal Estate Blog Feedback Survey.