Are you considering a home renovation project? Whether you’re looking to customize a new home, refresh a home you’ve lived in for years, or update your home before listing it for sale, home renovations can increase your home’s value, boost your home equity and enhance your enjoyment of the property!

Home Renovations with the Best Return on Investment

A 2025 study conducted by the National Association of REALTORS (NAR) explored which home renovation projects offer the highest returns, based on their estimated cost recovery when you sell the house.

Here’s what the study found: 

1. New steel front door: 100% recovered at resale
2. Closet renovation: 83%
3. New fiberglass front door: 80%
4. New vinyl windows: 74%
5. New wood windows: 71%
6. Basement conversion to living area: 71%
7. Attic conversion to living area: 67%
8. Complete kitchen renovation: 60%
9. Minor kitchen upgrade: 60%
10. Bathroom addition: 56%
11. New primary suite: 54%
12. Bathroom renovation: 50%

Why Renovations Don’t Always Pay for Themselves (And Why That’s Okay)

Are you surprised by the low returns on this list of renovation projects that offer some of the best returns? Let’s consider why homeowners tackle renovation projects that don’t return more than 100%.

First, most renovations aren’t done specifically for resale. Only around 18% of renovation projects were started with the intention of boosting the property value for resale within the next two years. Many projects that increase the property’s value initially age before the home is sold, which reduces their value at resale.

Secondly, some of these renovation projects may provide financial returns in other ways. For example, replacing the doors and windows may improve energy efficiency, which could save on heating and cooling bills. It could also limit potential hurricane damage, helping you save on future repairs. Or an attic conversion to a living area could house an aging parent or an adult child, saving money on rental expenses or even bringing in rental income.

Finally, many projects focus on the owner’s enjoyment of the property rather than the resale value of the improvement. According to the same study, here are the renovation projects most likely to bring joy to the owner (based on their “joy score” from 1-10):

1. Added Primary Bedroom Suite: 10
2. Kitchen Upgrade: 10
3. New Roofing: 10
4. Bathroom Renovation: 9.8
5. Complete Kitchen Renovation: 9.7

1. Paint One Interior Room: 9.3
2. New Wood Flooring: 9.1
3. Basement Conversion to Living Area: 8.8
4. Paint Exterior Siding: 8.8
5. New Front Door: 7.5
6. New Siding: 7.3
7. Garage Door: 7.3

Best Renovation Projects to Immediately Boost Resale Value

If you’re looking to maximize the sales price of your home in the near future, consider one of the following renovation projects, which provide some of the strongest returns upon immediate resale:

• Fresh exterior paint: 152% ROI (according to HomeLight)
• Refinishing hardwood floors: 147% cost recovery (according to Realtor.com)
• Installing new hardwood floors: 118% cost recovery  (according to Realtor.com)
• Fresh interior paint: 107% ROI (according to Angi.com)

Get Reliable Real Estate Guidance from De Costa Realty

Whether you’re looking for tips on buying a new home, selling a house, investing in real estate, or simply enjoying life in the Tampa Bay area, De Costa Realty is your trusted source for reliable guidance. Our expert team of real estate professionals is thrilled to help you navigate the local market. Whether you’re buying, selling, renting, or investing, contact us today for a private consultation to discuss your goals!