The U.S. housing market has been on a tear, climbing more than $20 trillion in value since early 2020 and reaching an eye-popping $55 trillion milestone in mid-2025.
That kind of growth has homeowners asking a big question: how can I boost my own home value before it’s time to sell? The truth is, not all upgrades are created equal. Some projects can pay off in a big way, while others barely move the needle.
This article breaks down which home improvements deliver the best returns, from the ROI on home renovations like a kitchen remodel to the boost from a bathroom upgrade, so you can make smart choices that add equity instead of just expense.
In our last piece, we walked through what every first-time home buyer should know before making the leap into ownership. Next up, we’ll be covering the practical side of selling, including how an estate cleanout can help maximize profits and simplify the process.
Why Renovations Matter for Home Value
Homeowners often assume every project automatically increases value, but the reality is more nuanced. While cosmetic updates can make a property more appealing, buyers are willing to pay more for improvements that add real function and longevity. This is where ROI on home renovations comes in.
Think of it as a simple calculation: the amount you spend versus the value buyers see in return. Older millennials, who are now entering their prime selling years, especially appreciate turnkey homes that don’t need major work. That means updates in kitchens, bathrooms, and energy efficiency tend to bring stronger offers. The right upgrades can boost equity, attract more buyers, and even shorten time on the market.
High-ROI Renovations That Pay Off
Kitchen Remodel ROI
If there’s one room that can make or break a deal, it’s the kitchen. Buyers often say it’s the “heart of the home,” and they mean it. The good news? You don’t need to gut the space to see a big lift in home value.
Minor remodels, think cabinet refacing, new countertops, fresh hardware, and energy-efficient appliances, often outperform major overhauls when it comes to ROI. According to remodeling cost-value reports, a smaller-scale kitchen update can recoup 70–80% of its cost, while a luxury remodel often falls below 60%. For older millennials who balance practicality with aesthetics, modern finishes and smart storage solutions hit the sweet spot.
Bathroom Renovation Value
Bathrooms are another buyer magnet. Outdated fixtures, cracked tile, or dim lighting can make a space feel neglected. On the flip side, an updated bathroom signals care and attention, two qualities buyers notice immediately.
Even modest updates can deliver solid returns. Replacing dated vanities, adding modern lighting, or upgrading to water-saving fixtures provides instant appeal. More extensive renovations, like walk-in showers with glass enclosures or dual vanities, can push the ROI higher, with average returns hovering between 60–70%. Bathrooms that balance style with function tend to add both comfort and resale value.
Curb Appeal & Exterior Updates
First impressions matter. A house with peeling paint, a cracked driveway, or overgrown landscaping turns buyers away before they even step inside. The good news? Exterior improvements often deliver some of the highest returns.
Popular upgrades include a new garage door, fresh siding, updated entry doors, and modern exterior lighting. Landscaping improvements mulching, planting, and trimming, are relatively inexpensive but can transform the look of a home. Plus, eco-friendly touches like drought-resistant plants or solar panels appeal to younger buyers looking for sustainable features.
Mid-Range Projects Worth Considering
Not every project delivers top-dollar ROI, but some still deserve attention because they enhance livability and widen buyer interest.
- Finished basements or attics: Converting unused square footage into livable space, like a home office, guest room, or media area, adds flexibility buyers appreciate.
- Energy efficiency improvements: New windows, upgraded insulation, and smart thermostats reduce long-term utility costs, making them attractive to cost-conscious millennials.
- Outdoor living spaces: Decks, patios, or backyard kitchens are lifestyle upgrades that resonate with today’s buyers, especially families who want entertainment-ready homes.
These projects may not top the ROI charts, but they make a property stand out in competitive markets.
Renovations With Low ROI to Avoid
Some upgrades are exciting but rarely deliver the financial payoff homeowners expect.
- Swimming pools: Expensive to install and maintain, pools appeal only to a narrow segment of buyers. In colder climates, they can even be a deterrent.
- Overly personalized remodels: Bright purple walls, themed rooms, or highly customized finishes might suit your taste, but won’t appeal to the majority of buyers.
- High-tech luxuries: Built-in media systems or cutting-edge gadgets often depreciate quickly as technology advances.
The key is to remember that renovations should appeal to the broadest pool of buyers, not just to personal preferences.
How to Maximize ROI on Home Improvements
Before swinging a hammer, it pays to think strategically. Here are a few ways to maximize returns on your renovation investments:
- Check with a local realtor: They know what features buyers in your area prioritize.
- Stick with timeless designs: Neutral colours, classic finishes, and practical layouts appeal to a wider market.
- Mind the neighbourhood standard: Over-renovating beyond the local average can backfire; buyers won’t pay more than the area supports.
- Focus on critical fixes first: A pre-listing inspection can reveal must-do repairs, from roof leaks to outdated wiring, that protect your asking price.
Final Thoughts
Not every home upgrade delivers the same return, but certain projects consistently rise to the top. Kitchens, bathrooms, and curb appeal improvements offer the strongest ROI, while mid-range updates like energy efficiency upgrades and outdoor spaces can sweeten the deal.
For older millennials thinking about selling, the takeaway is simple: invest wisely, focus on what buyers value most, and avoid pouring money into projects that won’t move the needle. With the right home improvements, your property can shine brighter in a crowded market—and you’ll be glad you put in the effort when it’s time to close.
