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2024 might not be the easiest year to buy a new home, but that doesn't mean you can't make the most of your current property. With home prices soaring, many people are choosing to invest in homes that need some work or stay put and upgrade their existing spaces instead.
In fact, a survey by Discover Home Loans from early May found that 55% of American homeowners prefer to renovate their current home rather than move. Although some of the best improvements, like a new kitchen or a revamped bathroom, can be costly, they often boost your home’s value when it’s time to sell or refinance.
But, before diving into a remodel, it's smart to know which projects offer the best return on investment (ROI). Here are the top renovations in 2024 according to the “2024 Cost vs. Value Report” by Remodeling, which analyzed the costs and values of various home improvement projects across 150 U.S. markets.
1. Garage Door Replacement
Average Cost: $4,513
Average Resale Value: $8,751
Cost Recouped: 193.9%
A fresh, good-looking garage door tops the list for ROI, nearly doubling in value this year. Replacing old garage doors with sturdy, four-section ones can really boost your home’s curb appeal and practically pay for itself when you sell. Home buyers love the idea of a secure, stylish, and functional garage door.
2. Steel Entry Door Replacement
Average Cost: $2,355
Average Resale Value: $4,430
Cost Recouped: 188.1%
Swapping out your front door for a steel one is a smart move, with an ROI of 188%, up from 100% last year. Steel doors are not only stylish but also super energy-efficient, cutting down on drafts and reducing heating and cooling costs. Plus, a solid, attractive front door gives a great first impression.
3. Fiberglass Grand Entrance
Average Cost: $11,353
Average Resale Value: $11,054
Cost Recouped: 97.4%
Upgrading to a fiberglass grand entrance can significantly improve your home's curb appeal. This straightforward project offers an almost 100% return, making it a worthwhile investment. It means making your entrance a little wider with decorative sidelights to match. The best part? It would only take a contractor one day to complete.
4. Manufactured Stone Veneer
Average Cost: $11,287
Average Resale Value: $17,291
Cost Recouped: 153.2%
Replacing some of your home’s vinyl siding with stone veneer gives it a classy look and boosts curb appeal. This project can return more than 153% of its cost, adding both style and value to your home. Home buyers are always impressed by the elegant and timeless look of stone.
5. Minor Kitchen Remodel (Mid-Range)
Average Cost: $27,492
Average Resale Value: $26,406
Cost Recouped: 96.1%
A minor kitchen remodel, involving cosmetic updates like new countertops, cabinets, and energy-efficient appliances, can recoup about 96% of its cost. It’s a great way to modernize your kitchen without breaking the bank. Potential buyers love a fresh, functional kitchen that looks great but doesn’t scream “expensive remodel.”
6. Fiber-Cement Siding Replacement
Average Cost: $20,619
Average Resale Value: $18,230
Cost Recouped: 88.4%
Replacing old siding with fiber-cement siding can give your home a fresh, updated look. This project has a solid ROI, recouping almost 90% of the cost. Home buyers appreciate the durability and low maintenance of fiber-cement siding, making it a top choice for an exterior upgrade.
7. Wood Deck Addition
Average Cost: $17,615
Average Resale Value: $14,596
Cost Recouped: 82.9%
A beautiful, functional deck is a big draw for buyers looking for outdoor entertaining space. Building a wood deck offers an ROI of nearly 83%, making it a smart addition for both enjoyment and resale value.
8. Bathroom Remodel (Mid-Range)
Average Cost: $25,251
Average Resale Value: $18,613
Cost Recouped: 73.7%
Upgrading your bathroom can significantly enhance its look and functionality. A midrange remodel, which might include new fixtures, flooring, and paint, can recoup about 74% of its cost. Home buyers love a fresh, modern bathroom that feels like a mini retreat.
9. Window Replacement (Vinyl)
Average Cost: $21,264
Average Resale Value: $14,270
Cost Recouped: 67.1%
Replacing your windows with low-E vinyl windows can improve energy efficiency and curb appeal. New windows are a big selling point, as they promise lower energy bills and a more comfortable living space.
10. Roof Replacement
Average Cost: $30,680
Average Resale Value: $17,461
Cost Recouped: 56.9%
A new roof is a major expense necessary for maintaining your home’s integrity. Replacing your roof with new fiberglass asphalt shingles can recoup around 57% of its cost. A solid roof reassures buyers that the home is well-maintained and won’t need major repairs anytime soon.
How to Pay for Home Renovations
Paying for renovations out of pocket is always an option, but if you need financing, there are several routes to consider:
Home Equity Line of Credit (HELOC): This is a revolving line of credit secured by your home. It tends to have lower interest rates and can be a flexible financing option.
Home Equity Loan: This is a fixed-rate loan paid out in a lump sum and repaid over a set term.
Cash-Out Refinance: This involves taking out a new mortgage for more than you owe and using the extra cash for renovations.
Remember, the costs and returns can vary based on location and market conditions. However, the right remodeling project can boost your home’s value, increase your equity, and enhance your living experience. Investing in your home now can pay off significantly in the future, whether you’re planning to sell or simply enjoy your upgraded space.
