Crunching the numbers from a purely financial standpoint, investing in home improvement projects might not provide the highest return on investment (ROI). In most cases, the returns upon selling will be a small fraction of the initial investment amount. These returns are typically less than what you would earn from investing in stocks, bonds, or low-interest bank accounts.
However, it is valuable to note that some home improvement projects might yield better results than others. These improvements can also offer non-financial benefits like making your home safer, comfortable, more appealing, ecologically beneficial, or even more enjoyable to inhabit.
Based on data from the National Association of Realtors and National Association of the Remodeling Industry's Remodeling Impact Report in 2025, they suggest around twelve home improvement projects that can likely give at least half of their initial cost back at the time of sell. Of which, the most lucrative type of improvement was replacing the front door with a new steel one. On the other hand, adding an upscale primary bedroom suite gave the least percentage of recouped cost at 18%, according to the Journal of Light Construction.
Kitchen remodels are dependable performers with minor remodels expected to return 113% and major high-end remodels around 36%. New roofing with asphalt shingles typically come back with 68%.
Further, the NAR Report also employs "joy scores" to measure homeowners' happiness derived from a completed project. Homeowners were found to have rated adding a primary bedroom suite, upgrading their kitchen, and new roofing highly at a score of 10/10.
To maximize financial benefits from home improvements, keep receipts of all improvements as they can be added to the cost basis when you sell your home, potentially reducing your taxable profit.
However, for homeowners intending to move soon, major remodeling projects might not be the best idea. It's also crucial to avoid making your home too luxurious for the neighborhood as more reasonably priced homes can draw a larger number of potential buyers. Also, renovations based on personal tastes may not always align with the next owner's preferences. In such cases, they might remodel the house to suit their style anyway, making the initial investment wasteful.
In essence, home improvement investments should be carefully considered and necessitate a balance between personal benefits they provide and their financial cost. For those who find the comfort, security, and other non-monetary benefits worth the cost - Happy remodeling!