Top Remodeling Projects for Maximum ROI in 2024
Thinking about giving your home a fresh look? Whether you’re preparing to sell or simply want to enhance your living space, remodeling can be a fantastic investment. However, not all projects yield the same return—especially since home repair costs have surged by 40% since 2019.
Understanding that current remodeling costs can be discouraging, the experts at Zonda, a housing market research firm, have released their 2024 Cost vs. Value Report. This report is brimming with insights to help you maximize your return on investment (ROI).
Curb Appeal is Key
To increase your home’s value, exterior improvements are crucial. According to Zonda, eight of the top ten projects with the highest ROI are exterior upgrades.
Why? Because first impressions are everything. A home with excellent curb appeal stands out in the market, attracting more buyers and potentially fetching a higher price.
Clay DeKorne, Zonda’s chief editor, explains that exterior replacement projects continue to offer the best resale value. In today’s market, marked by higher mortgage interest rates and homeowners with significant equity, these projects provide a substantial ROI.
Cost vs. Value: National Average for Home Remodeling Projects
Here are all the home remodeling projects analyzed by Zonda, ranked by the highest return on investment.
Top 3 Projects with the Highest ROI
This year’s report highlights that the most profitable projects for maximizing your ROI might not be the flashiest ones, but they certainly capture buyers’ attention. Here are the top three projects, each boasting an ROI well over 100%.
Garage Door Replacement: 194% ROI
This project tops the list, nearly doubling its return from last year. A new garage door can significantly enhance your home’s exterior appeal, making it more attractive to buyers.Steel Entry Door Replacement: 188% ROI
Replacing your front door with a steel one not only boosts security but also improves the overall appearance of your home. It’s a simple upgrade with a significant payoff.Manufactured Stone Veneer: 153% ROI
Adding stone veneer to your home’s exterior can give it a luxurious and durable look. This stylish upgrade is highly valued by homebuyers.
For those seeking small projects with a big impact, doors are an excellent starting point.
“A new garage door or entry door can make a pronounced difference,” says Todd Tomalak, principal of Zonda Advisory. “It could be the feature that makes one house stand out from the others, increasing its market value.”
Other less glamorous upgrades, such as a new roof, window replacements, and HVAC conversions, also made Zonda’s list of valuable improvements.
Key Takeaway
While a luxurious kitchen remodel might be a dream project, data suggests it won’t necessarily provide the best return on investment when it comes to resale value. This doesn’t mean you can’t enjoy a new kitchen! However, if your goal is to maximize your ROI, prioritize exterior improvements and strategic interior updates first.