Get the Best ROI with Your Next Home Improvement Project

Posted on Jan 5 2016 - 4:07pm by Housecall

Home is where the heart is, but sometimes it’s also where a homeowner’s savings plan comes into account. Homeowners may have a long wish list of home renovations and projects, and sometimes the work is never done. While return on investment (ROI) may not be the biggest consideration in a homeowner’s mind when deciding which projects make it to the top of the list, knowing which projects see the highest returns may be helpful in the decision-making process.


Happiness in the home can be a part of the ROI, but other cost vs. value factors vary by region and even by room. ROI, as defined in Remodeling’s 2015 Cost vs. Value report, can be broken down as the percentage of the estimated average cost of a renovation project that is projected to be recouped in resale value, as aggregated from real estate and appraisal estimates.

According to Huffington Post, the most common remodeling job request projects in the United States are in the bathroom. A mid-range bathroom addition costs approximately $39,578, as complied in Remodeling’s Cost vs. Value report. The ROI was estimated at 57.8 percent. For those needing a bathroom remodel, the cost averaged $16,724 with an ROI of 70 percent. Upscale additions and remodels naturally went up in cost, but the ROI didn’t quite hit the level of a mid-range upgrade, with 58 percent and 59.8 percent, respectively. Bathroom remodeling projects that were big in 2015, according to Forbes, included custom vanities, feature floor tiles, bigger showers and plant life.

Kitchen remodel job requests accounted for 69 percent, the second most common in the U.S. A major mid-range remodel averaged at about $56,768 with an ROI of 67.8 percent, while minor remodels saw an ROI of 79.3 percent and a cost of about $19,226. A major upscale remodel could cost upward of $113,097, with an ROI at 59 percent. According to My Home Ideas, trends in 2015 included built-in coffee centers, dual-fuel ranges, Italian cooking gadgets, designer dishwashers and wine refrigeration.

Not all projects, of course, are room-centered. Window/door replacement accounted for 44 percent of home remodeling job requests in 2015. This included window replacement, entry door replacement and steel, with ROIs of 72.9 percent, 78.8 percent and 72 percent, respectively. Finished basements also were high on the list, with 27 percent of remodeling job requests. Coming in with an average cost of $65,442 in 2015, the ROI on these projects was 72.8 percent.

Contributed by Northshore Fireplace

10 Comments so far. Feel free to join this conversation.

  1. Greg Manuel January 13, 2016 at 11:22 am -

    I question your use of the term ROI here. What you are actually talking about is what a person can expect to recoup on a project, which in real terms if $100 is spent and the end value is $80, then the ROI is -20%. That is a loss, or negative ROI, which, I believe is quite misleading in your article.

  2. Harris Safier, CRB,CRS,GRI January 15, 2016 at 4:44 am -

    This information is interesting, always. For those homeowners wishing to have the most accurate info on perceived value of home improvements, I’d suggest a conversation with a quality REALTOR they consider a trusted advisor. Someone successful and currently active in the area will be able to share more relevant insights into regional trends and tastes of current target buyers for a specific home.

  3. Dennis O'Riley January 15, 2016 at 8:09 am -

    The article states, “ROI as defined by Remodeling’s 2015 Cost vs. Value Report, can be broken down as the percentage of estimated average cost of a renovation project that is projected to be recouped in resale value….
    I believe that to be a correct explanation as it relates to the subject and thus, not misleading.

  4. Trisha Desai February 29, 2016 at 5:40 am -

    Good Infographic

  5. Niti Sharma March 2, 2016 at 4:20 am -

    I always love infographic, thanks for sharing home improvement infographic.

  6. Thom May 4, 2016 at 12:06 pm -

    Best tip is to: it yourself and 2. Try to work out a budget and stick to it.Other than renovation its not only a great hobby but it could save a lot of money. There are a lot of online resources to start with for example. btw nice infographics!

  7. J.T. May 25, 2016 at 1:06 pm -

    Yeah guys, there are a lot of articles that keep misusing ROI. ROI is RETURN on investment. If you lose $50,000 on a $100,000 project, your RETURN is -$50,000 or -50%.

    Imagine an investment in the stock market where you end up with $10 after you invested $100. Did you get a 10% return on investment? NO! You got a -90%.

    Return on investment is relative to investment, where your investment is base-line. Anything lower is negative, anything higher is positive.

  8. Springtown Roofer April 17, 2017 at 5:52 am -

    Interesting infographic, explained it all so beautifully. Well recently I have turned my attic into my home office, its quiet, alone there and suits me perfectly. Most of the results are on expected lines, most of the homeowners generally opt for getting basic comforts rather than expensive luxurious options.

  9. Mukesh Panda January 4, 2020 at 5:01 am -


  10. Quick Roofing October 27, 2020 at 1:30 am -

    Roof repairs and replacement can be expensive, so hiring the right roof contractor is important.