Cost vs. Value: 2020 Home Improvement Projects With the Highest ROI

Posted on Jan 21 2020 - 1:18pm by Jameson Doris
#17

Curb appeal really does have a major impact on the return you'll see at resale. Among the top 10 home improvement projects with the highest return on investment (ROI) in Remodeling magazine's newly-released Cost vs. Value Report, nine are outdoor projects.

Related: 4 Resolutions for Home Improvements to Make in 2020

Topping this year's list is Manufactured Stone Veneer, a project that has consistently ranked toward the top of the list since the project was added to the report in 2015.

Unsurprisingly, the report shows an increase in cost for all 22 projects listed; however, there is also a consistent dip across the board in terms of what the perceived value of each of these projects is. This is likely due to a market that was anything but smooth in 2019.

"Why the difference? The most likely answer is consumer jitters," says Clay DeKorne, chief editor of the JLC Group, which includes Remodeling magazine. "While remodeling professionals need to stay on point, they can breathe easy. Remodeling activity is growing at a slower rate than in years past, but it continues to grow."

Nationally, here are the 10 projects with the greatest ROI, according to the 2020 Cost vs. Value Report:

Manufactured Stone Veneer (95.6% ROI)

  • Average Cost: $9,357
  • Average Resale Value: $8,943

Garage Door Replacement (94.5% ROI)

  • Average Cost: $3,695
  • Average Resale Value: $3,491

Minor Kitchen Remodel (Midrange) (77.6% ROI)

  • Average Cost: $23,452
  • Average Resale Value: $18,206

Siding Replacement (Fiber-Cement) (77.6% ROI)

  • Average Cost: $17,008
  • Average Resale Value: $13,195

Siding Replacement (Vinyl) (74.7% ROI)

  • Average Cost: $14,359
  • Average Resale Value: $10,731

Window Replacement (Vinyl) (72.3% ROI)

  • Average Cost: $17,641
  • Average Resale Value: $12,761

Deck Addition (Wood) (72.1% ROI)

  • Average Cost: $14,360
  • Average Resale Value: $10,355

Window Replacement (Wood) (68.9% ROI)

  • Average Cost: $21,495
  • Average Resale Value: $14,804

Entry Door Replacement (Steel) (68.8% ROI)

  • Average Cost: $1,881
  • Average Resale Value: $1,294

Deck Addition (Composite) (66.8% ROI)

  • Average Cost: $19,856
  • Average Resale Value: $13,257

Nationally—and on the other end of the spectrum—here are the 10 projects with the lowest ROI:

Master Suite Addition (Upscale) (51.6% ROI)

  • Average Cost: $282,062
  • Average Resale Value: $145,486

 Grand Entrance (Fiberglass) (53.3% ROI)

  • Average Cost: $9,254
  • Average Resale Value: $4,930

Major Kitchen Remodel (Upscale) (53.9% ROI)

  • Average Cost: $135,547
  • Average Resale Value: $72,993

Bathroom Addition (Midrange) (54% ROI)

  • Average Cost: $49,598
  • Average Resale Value: $26,807

Bathroom Addition (Upscale) (54.7% ROI)

  • Average Cost: $91,287
  • Average Resale Value: $49,961

Bath Remodel (Upscale) (56.6% ROI)

  • Average Cost: $67,106
  • Average Resale Value: $37,995

 Master Suite Addition (Midrange) (58.5% ROI)

  • Average Cost: $136,739
  • Average Resale Value: $80,029

Major Kitchen Remodel (Midrange) (58.6% ROI)

  • Average Cost: $68,490
  • Average Resale Value: $40,127

Roofing Replacement (Metal) (61.2% ROI)

  • Average Cost: $40,318
  • Average Resale Value: $24,682

Bathroom Remodel (Universal Design) (62% ROI)

  • Average Cost: $34,643
  • Average Resale Value: $21,463

The 2020 Cost vs. Value Report compared the average costs for 22 popular remodeling projects and how much of that value they retained in 101 different U.S. housing markets. View the full report, including project descriptions and city-level data, here.

 

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

  1. Burlington January 25, 2020 at 12:04 am - Reply

    This is certainly an eye-opening article for me. Seeing that manufactured stone veener project at an average costs of $10K trumps a full kitchen remodel and not be a slim margin but a huge margin for ROI makes me shake my head.

  2. Ardeth L Fair January 25, 2020 at 11:04 am - Reply

    as an appraiser i fell this information from “big data” is very misleading – improvement/return needs to be evaluated per individual house and marketing area – even a remodeled kitchen may not return what is projected (ie a two year old house where the owner changed the kitchen from one upscale kitchen to a differnt style cause they didnt like the first one, (or a low end market area where people just cant afford to pay for a remodel, updating may be more cost effective) added bedroom in retirment community may only be worth gla factor – adding 4th bathroom in a 2 bath market ? giving such set numbers is misleading and may result in your clients wasting thier money. Big Data is useful only when filtered by evaluating each individual property, marketing area and trends.

  3. Colleen Lawler January 29, 2020 at 5:00 pm - Reply

    I’ve been a part of this survey, and just participating made me sure that these are pretty generalized findings. Each area, each lot, each house will bear a different ROI on anything!!

  4. Phil January 29, 2020 at 6:42 pm - Reply

    This macro data is helpful in pointing out to homeowners that, in the aggregate, remodeling projects can often return only a fraction of their anticipated cost. The Cost-vs-Value Report provides further data broken down by region, which is more helpful when analyzing specific projects and ROI on a more micro level. Homeowners often ask us whether they should remodel their home in anticipation of selling it, and we counsel them with these numbers in mind.

  5. Jeff January 29, 2020 at 7:45 pm - Reply

    How about adding solar panels to your list. I’ve seen owners lose so much money on panels another buyer doesn’t want to assume a payment on.

  6. Jan Livingston January 29, 2020 at 8:07 pm - Reply

    Ardeth,
    Thank you for your valued opinion! I agree it varies by market and individual house and can lead some down the wrong path. “Big data” makes our jobs much more difficult Realtor

  7. kelly sawyer March 1, 2020 at 10:09 pm - Reply

    Definitely something that is worth talking about, this has been the most asked question for me as a home renovator

  8. Eric McDonald March 4, 2020 at 6:56 am - Reply

    If anyone is reading this type post, Then they must mention their opinion about this type of post. I can say that our team has really loved this post. Thanks for sharing this blog.

  9. Rotorua Builders March 4, 2020 at 7:09 am - Reply

    The greatest blog ever because it’s helped us so much. I am very impressed by your blog. It’s such an interesting post. I am thankful for this.

  10. khushi Thakur March 5, 2020 at 4:39 am - Reply

    Nice post

    Thanks for sharing this informative post

  11. Rishu pallawee March 8, 2020 at 6:00 am - Reply

    Hi
    Great post
    The Cost-vs-Value Report provides further data broken down by region, which is more helpful when analyzing specific projects and ROI on a more micro level. It will be very useful for the person who wants to know about home improvement projects with the highest return on investment in Remodeling magazine’s newly-released.
    Thanks for sharing this informative post.

  12. Dunk Hill March 12, 2020 at 2:07 am - Reply

    Thanks for sharing your ideas with us. It’s very interesting article.

  13. Mike Mijares May 11, 2020 at 11:52 pm - Reply

    Thanks for the ideas! i enjoyed reading this

  14. Mike Kohn May 21, 2020 at 2:53 am - Reply

    Full of information! No time was wasted when i read this, totally worth it.

  15. Sean Power August 31, 2020 at 8:49 pm - Reply

    This made for an interesting read. What is the most commonly chosen option from these?

  16. Kevin Jumpman October 8, 2020 at 2:26 am - Reply

    Hi thanks for the information you shared this is really helpful for me because I am planning to remodel my kitchen. I have learned more on here. 🙂

  17. appliance service Cairns October 18, 2020 at 3:08 am - Reply

    I am planning a rebuild myself, this is very useful information

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