Homeowners

What Homeowners Can Learn From 2025’s Cost vs. Value Report

Many homeowners dream of a gut kitchen remodel, renovating dated bathrooms, or putting an addition onto their homes. However, these projects may not add as much value to their homes as they assume.

Every year, the Cost vs. Value Report lands with its tidy ranking of which renovations deliver the best bang for homeowners’ buck when they sell their property. This year’s edition from housing research firm Zonda is no exception.

With homeowners facing affordability challenges across the economic spectrum, these findings can serve as a guide for where owners may want to prioritize spending on home improvements and where to save their money.

Here’s a look at the top 10 home improvement projects that deliver the highest return on your investment when you choose to sell.

The home improvement projects with the highest return on investment

Exterior upgrades, such as garage door replacements, might not be the most exciting projects. But they had the highest potential returns, indicating that buyers place a high value on a home’s appearance.

“Curb appeal often outweighs interior luxury remodels when it comes to resale value,” said Irena Martincevic, industry analyst at Fixr.

Here’s a look at the 10 home improvement projects with the highest returns on investment.

#1.  Garage Door Replacement
Cost: $4,672
Return on investment: 267.7%

#2. Steel Door Replacement
Cost: $2,435
Return on investment: 216.4%

#3. Manufactured Stone Veneer
Cost: $11,702
Return on investment: 207.9%

#4. Fiber-Cement Siding Replacement
Cost: $21,485
Return on investment: 113.7%

#5. Minor Kitchen Remodel
Cost: $28,458
Return on investment: 112.9%

#6. Vinyl Siding Replacement
Cost: $17,950
Return on investment: 96.5%

#7. Backup Power Generator
Cost: $13,534
Return on investment: 95.3%

#8. Wood Deck Addition
Cost: $18,263
Return on investment: 94.9%

#9. Composite Deck Addition
Cost: $25,096
Return on investment: 88.5%

#10. Fiberglass Grand Entrance
Cost: $11,754
Return on investment: 84.7%

“This shows the best return comes from improving curb appeal and making sure the home looks tidy, well-kept, and inviting from the front door in,” said Eric Fernwood of the Fernwood Real Estate Investment Group in Las Vegas, Nev. “A clean, fresh-smelling home with strong curb appeal often does more to attract buyers than costly upgrades.”

Why garage door replacements offer the highest homeowner returns on investment

The top slot belongs to garage doors, with a jaw-dropping 267.7% of costs recouped at resale. On paper, that means a $4,672 job adds $12,507 in value when you sell.

Indeed, garage doors consistently rank at the top of the Cost vs. Value report because they combine low cost with a major impact on curb appeal plus added home security. Most garage doors can be replaced in a single day, making it a quick project as well.

“Smaller improvements like garage door instantly refreshes a home’s look, covering up years of wear and tear,” said Martincevic. “It’s one of the few updates buyers can notice from the street before they even walk in, making it a big part of the first impression.”

Minor kitchen remodels don’t recoup as much return on investment as other upgrades

For owners, it’s also worth thinking about why interior projects don’t perform as well in Zonda’s rankings. A “minor kitchen remodel” recouping about 113% sounds impressive. But it’s a lot less than the 200-plus percent returns of exterior work. 

One reason why? Kitchens and baths are intensely personal.

What one buyer considers a sleek, modern aesthetic, another may find cold or dated. The result is a valuation gap between what you spend on a remodel and what future buyers are willing to pay for it down the line.

Just keep in mind, “these are broad, nationwide recommendations, but they don’t account for local markets or the specific competition your property will face when it’s listed,” said Fernwood.

For example, let’s say your kitchen has laminate countertops. If most similar homes also have laminate, upgrading to granite probably isn’t a wise investment.

“But if the competition features granite, you might need to upgrade to stay competitive,” said Fernwood.

Homeowners who want to undertake a larger remodel can tap into home improvement loans to help cover the costs of the work. 

Homeowners should think strategically about home improvements

For homeowners, the main point of the report is not to give up on interior projects, but to plan carefully.  

If you’re planning to sell your home, you may want to invest in exterior improvements. If your garage door is dented, your siding looks worn, or your front door is aging, these are probably the best areas to focus on if resale is your goal. 

However, if you’re planning on staying in your home for the long term, weigh the quality-of-life benefits of interior projects against their resale value. A cozy breakfast nook or chef-worthy range may not appear in Zonda’s charts but could be invaluable to you.