Top 5 Renovations That Add Value to Your Home

Did you know that the right renovations can boost your home’s value by as much as 70–80% of the project cost at resale? For landlords, investors, and homeowners, choosing smart upgrades isn’t just about aesthetics—it’s about long-term return on investment (ROI). Whether you’re preparing to sell, increase rental income, or simply build equity, knowing which renovations actually add value to your home is critical.

Why Renovations Matter for ROI

Not all upgrades are created equal. While granite countertops or fancy chandeliers may look appealing, they don’t always bring the best financial return. The key is to focus on renovations that appeal to the broadest pool of buyers and tenants while keeping costs in check.

Below, we break down the top 5 renovations that add value to your home, backed by real-world data and examples.

1. Kitchen Remodels: The Heart of the Home

A modern kitchen is one of the biggest selling points for buyers and renters alike. According to Remodeling Magazine’s Cost vs. Value Report, a minor kitchen remodel recoups nearly 81% of its cost on average.

Key Upgrades That Add Value:

• Upgrading countertops to quartz or granite

• Installing energy-efficient stainless steel appliances

• Adding a functional island or open-shelving design

• Refreshing cabinets with paint or new hardware

Pro tip: Even small changes like replacing old faucets or updating lighting can have a big impact without breaking the bank.

2. Bathroom Renovations: High Impact, High ROI

Bathrooms are often where buyers make emotional decisions. An outdated bathroom can turn away offers, while a refreshed one can seal the deal. Mid-range bathroom remodels typically return 60–65% of costs.

Best Bathroom Upgrades:

• Walk-in showers with glass enclosures

• Modern vanities with storage

• Energy-efficient toilets and fixtures

• Fresh tile and updated lighting

Investor example: A landlord who upgraded a two-unit property’s bathrooms in Chicago increased rental rates by $150/month per unit—paying back the renovation in under three years.

3. Curb Appeal Enhancements: First Impressions Count

The exterior is the first thing buyers and tenants notice. Curb appeal projects are often lower in cost but provide some of the highest returns on investment.

High-Value Curb Appeal Projects:

• Replacing or repainting the front door

• Upgrading garage doors (recoups ~94% of cost)

• Landscaping with low-maintenance shrubs and mulch

• Fresh exterior paint or siding replacement

Fact: Homes with strong curb appeal sell for an average of 7% more than comparable properties, according to the Journal of Real Estate Finance and Economics.

4. Energy-Efficient Upgrades: Savings + Value

Today’s buyers and renters care about utility costs just as much as aesthetics. Energy efficiency not only saves money but also adds real market value.

Top Energy-Efficient Renovations:

• Installing double-pane or energy-efficient windows

• Upgrading insulation in attics and walls

• Adding smart thermostats and LED lighting

• Replacing old HVAC systems

Pro tip for landlords: Promoting “energy-efficient features” in rental listings often justifies higher rents and attracts eco-conscious tenants.

5. Basement and Attic Conversions: Unlock Hidden Space

Converting unused spaces is one of the smartest ways to increase livable square footage. Finished basements and attics can boost resale value while also generating rental opportunities.

Popular Conversion Ideas:

• Turning a basement into an in-law suite or rental unit

• Creating a home office or gym in an attic space

• Adding storage-friendly built-ins to maximize functionality

Real-world example: An investor in Denver converted an unfinished basement into a rentable one-bedroom unit, generating an additional $1,200/month in cash flow.

Final Thoughts: Invest Where It Counts

The top 5 renovations that add value to your home—kitchen remodels, bathroom updates, curb appeal enhancements, energy efficiency upgrades, and space conversions—aren’t just cosmetic. They directly impact your property’s equity, resale price, and rental income.

When planning your next renovation, ask: Will this appeal to the majority of buyers or tenants, and will it generate a measurable return?