Although the frenzy of home renovations seen during the pandemic has cooled off slightly, homeowners are still eager to invest in their living spaces as the spring housing market begins to heat up. According to the 2024 Cost vs. Value report from Zonda Media, certain home improvement projects are now offering the highest return on investment in history. Surprisingly, projects such as garage door replacements and steel front door upgrades are averaging returns of nearly 200% for the first time ever. These projects are proving to be much more lucrative than the traditional kitchen and bath remodels that many homeowners opt for.
It is interesting to note that the projects offering the greatest returns in resale value are primarily related to curb appeal rather than luxurious interior upgrades. The report found that nine out of the top 10 projects with the highest return on investment were exterior improvement projects. Clay DeKorne, chief editor of Zonda’s JLC Group, emphasized the importance of exterior replacement projects in adding resale value to a home. However, with the rising costs of construction labor and building materials, not all homeowners will see a significant increase in their home’s value.
Zonda’s report revealed that only three projects on the list have the potential to deliver a 100% return on investment: replacing garage doors, upgrading to a steel front door, and installing a stone veneer. Projects such as upscale bathroom or kitchen remodels, which are considered more discretionary, may not provide as much return to sellers. This is because buyers are more focused on exterior enhancements that boost curb appeal rather than high-end interior renovations.
Given the current high home prices and limited supply of homes for sale, sellers need to be strategic in their renovation efforts to attract potential buyers willing to pay top dollar. Todd Tomalak, Zonda’s principal of building products research, highlighted the importance of making the right choices when it comes to renovation projects. He suggested that simple upgrades such as a new garage door or front entry door can significantly improve a home’s value and make it stand out in a competitive market.
To maximize the return on investment for home renovations, it is advisable to consult with a real estate professional in your area. They can provide insights into specific renovations that are likely to increase your home’s value and which ones to avoid. While some regions may benefit from additions like a swimming pool, others may not see a significant return on such investments. Angelica Ferguson VonDrak, an associate real estate broker, highlighted the importance of practical, “un-sexy” upgrades such as HVAC conversions, new roofs, and window replacements. In some cases, a thorough cleaning and decluttering can also enhance a home’s appeal to potential buyers.