When it comes to increasing the value of your home, not all upgrades are created equal. As a homeowner or investor, it’s tempting to focus on the flashiest changes—like installing a luxury pool or building a backyard oasis—but the reality is that some upgrades do far more for your return on investment (ROI) than others. Whether you’re preparing to sell or simply thinking long-term about your property’s worth, knowing which home improvements actually pay off can save you money and guide your decisions wisely. From kitchen remodels to curb appeal, let’s dive into which upgrades genuinely move the needle on resale value—and which ones may not be worth the splurge.
Understanding ROI in Home Renovations
Return on investment is a financial term that tells you how much value you’re gaining from every dollar spent. In home improvement, that means how much of your renovation cost will be recouped when you sell the property. For instance, if you spend $25,000 updating your kitchen and it raises your home’s value by $20,000, your ROI is 80 percent. The higher the ROI, the more worthwhile the project tends to be from a financial perspective. But ROI doesn’t just come down to cost—it’s also about market trends, buyer preferences, and how upgrades align with what buyers in your area actually want.
Kitchens Still Reign Supreme
Year after year, the kitchen remains one of the most valuable rooms to update. It’s the heart of the home, where families gather, meals are shared, and buyers fall in love—or don’t. A well-executed kitchen remodel can offer one of the highest returns of any home improvement. Minor kitchen remodels, in particular, often have better ROI than major overhauls. Updating cabinets, countertops, appliances, and lighting can breathe new life into the space without requiring a full demolition.
Buyers notice clean, modern kitchens, and they’re often willing to pay more for a home with updated appliances, quartz or granite countertops, and neutral cabinetry. While you might not get every dollar back, a smart kitchen update can recover up to 75–85% of your investment and help your home sell faster. The key is to stay classic—trendy features that could fall out of favor quickly don’t always pay off in the long run.
Bathrooms: Small Changes, Big Returns
Next to the kitchen, bathrooms offer one of the best places to increase your home’s value. You don’t have to gut the entire room to make a big impact. Updating fixtures, replacing old tile, adding new lighting, and improving storage can give a bathroom a fresh, clean look that appeals to potential buyers. ROI on bathroom remodels often lands in the 60–70% range, depending on how extensive the changes are.
Powder rooms and primary baths tend to see the highest returns, especially if you’re adding functionality. A double vanity, improved lighting, or even better ventilation can make a big difference. If your home only has one bathroom, adding a second can significantly increase resale value, especially in family-oriented markets where convenience matters.
Curb Appeal Still Counts
Before buyers ever step foot in your home, they form opinions based on its exterior. That’s why investing in curb appeal is one of the smartest and most cost-effective ways to boost property value. Simple improvements like painting the front door, updating your landscaping, cleaning the driveway, or installing modern light fixtures can deliver excellent ROI at a relatively low cost.
According to national data, exterior improvements such as replacing siding, garage doors, and even adding manufactured stone veneer can bring back 90% or more of what you spend. First impressions matter in real estate, and an attractive exterior often leads to faster offers and better pricing.
Energy-Efficient Upgrades
Today’s homebuyers are increasingly conscious of energy efficiency, not just for environmental reasons but also to save on long-term utility costs. Replacing old windows, installing better insulation, upgrading to energy-efficient appliances, and adding smart thermostats can improve a home’s efficiency and appeal.
Energy-efficient upgrades typically offer a moderate ROI, but they can make your home stand out in competitive markets. Programs like Energy Star certification or local green-building incentives may help increase resale value. While you may not see immediate dollar-for-dollar returns, the reduced energy bills and added selling points often make these investments worthwhile.
Flooring: A Subtle but Significant Upgrade
The condition and style of your flooring can make a dramatic impression. Old carpet, chipped tile, or worn-out linoleum can make a house feel dated and poorly maintained. On the other hand, updated flooring gives the entire home a cohesive, polished feel. Hardwood remains the most desirable material for many buyers, followed closely by high-quality vinyl plank or laminate that mimics wood.
Replacing flooring throughout the home typically has a moderate ROI—often around 70–80%—but it can be the deciding factor in how quickly a home sells and how much a buyer is willing to pay. If your budget is limited, focus on the main living areas first, as they tend to have the biggest visual impact.
Pools: Lifestyle Upgrade, Low ROI
A swimming pool can certainly be a desirable amenity, particularly in warm coastal markets like the Gulf Coast. However, pools rarely offer a high return on investment. In many cases, a pool adds only 40–50% of its installation cost to your home’s value. That’s because pools also come with ongoing maintenance costs, safety concerns, and limited appeal to certain buyers—especially families with young children or buyers who don’t plan to use it year-round.
That said, in certain markets, a pool might help your home sell faster or at a slight premium if it’s a must-have feature. In resort or vacation home markets, for instance, a pool may be expected. But from a pure financial standpoint, there are more efficient ways to boost your home’s value.
Custom Features and High-End Upgrades
Things like home theaters, wine cellars, elaborate built-ins, or top-of-the-line appliances often fall into the “luxury” category—and they don’t always return their full value. While they might be personally enjoyable and impressive to look at, these types of custom features appeal to a narrower pool of buyers. That means they don’t always improve marketability or resale price unless you’re in a luxury market where buyers expect them.
If you’re adding features for personal use and plan to stay in the home long-term, they may be worth it for lifestyle reasons. But if your main goal is to improve resale value, it’s smarter to stick with versatile upgrades that appeal to a broader audience.
The Power of Paint
One of the simplest and most cost-effective upgrades is a fresh coat of paint. Neutral colors—think whites, greys, and soft beiges—give your home a clean, modern look and help buyers envision themselves living there. Painting interior walls, trim, or even kitchen cabinets can dramatically change the feel of a home with very little investment.
Painting typically returns about 100% of the cost and makes your home more attractive during showings. If you’re preparing to sell, painting is often one of the first upgrades real estate agents recommend for exactly this reason.
Open Floor Plans and Flow
While not always a traditional “upgrade,” improving the layout of your home can pay off significantly. Open floor plans are consistently popular with buyers, especially in modern homes. Removing non-structural walls to open up sightlines or improve traffic flow can make your home feel larger and more functional.
Major structural changes come with higher costs and potential permitting requirements, but minor layout tweaks—like widening doorways or reconfiguring a kitchen island—can improve usability without blowing your budget. These types of improvements often improve both livability and market value.
Smart Home Technology
In a digital age, many buyers are looking for homes equipped with smart technology. Things like keyless entry systems, video doorbells, Wi-Fi-enabled thermostats, and smart lighting systems can enhance both security and convenience. While these features don’t dramatically increase appraised value, they can set your listing apart and appeal to younger, tech-savvy buyers.
Smart upgrades are usually inexpensive and easy to install, and while ROI varies, they often help homes feel more current and up-to-date. This can be a strong selling point in a competitive market.
Balancing ROI with Lifestyle
Not every upgrade needs to be ROI-driven. If you’re planning to stay in your home for several years, it’s perfectly reasonable to prioritize projects that enhance your lifestyle—even if they don’t bring in big resale bucks. But when resale value is the goal, it’s important to weigh your choices carefully. Focus on improvements that add functional value, appeal to the widest audience, and are backed by data on resale impact.
Local market trends also matter. What boosts value in one region might not hold the same appeal in another. That’s why working with a real estate professional can help you make smart, strategic renovation decisions that align with both your personal goals and your market’s unique demands.
Final Thoughts
Improving your home can be incredibly rewarding, but not every upgrade guarantees a financial return. Kitchens, bathrooms, curb appeal, and energy efficiency consistently top the list when it comes to adding value, while things like pools or high-end luxury features tend to offer lower ROI unless you’re in a niche market. Understanding the difference can help you prioritize wisely—whether you’re planning to sell soon or just want to make smart choices for the future.
If you’re unsure which upgrades make the most sense for your specific home or local market, don’t hesitate to reach out to a trusted real estate expert. With the right guidance, you can make informed decisions that enhance both your property’s livability and its long-term value.
