Home Improvement Projects Rate of Return on Investment

By: Danny Lipford

Thinking about adding a deck or revamping the kitchen so you can up the price of your home before you sell? You might want to crunch the 2010-11 Cost vs. Value numbers, complied by Remodeling magazine, before you do.

Projects with highest return on investment

  • Replacing entry door with steel door (102%)
  • Garage door replacement (84%)
  • Adding a wood deck (73%)
  • Minor kitchen remodel (73%)
  • Vinyl siding replacement (72%)
  • Wood window replacement (72%)
  • Attic bedroom addition (72%)

Project with lowest rate of return on investment

  • Home office remodel (46%)
  • Sunroom addition (49%)
  • Bathroom addition (53%)
  • Garage addition (59%)

The data includes national and regional averages on over 20 common home improvement projects ranging from kitchens and baths to roofs and decks. Data for both midrange and upscale projects is provided on:

  • Average cost of project.
  • Added resale value.
  • Percentage of investment recouped.
  • Change from last year’s report.

Bottom line: The above numbers assume you’re hiring out the labor on the project. If it’s a DIY project, and do a good job, the rate of return on your investment will be higher. Unless you plan on doing the work yourself, or not doing the project makes your house undesirable or unsellable, most home improvement projects will return less from your investment than you put in, so you might want to consider staying in your home a while to enjoy the results of your improved home!

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3 Comments on “Home Improvement Projects Rate of Return on Investment”

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  • Charlotte Patrone Says:
    August 29th, 2014 at 2:58 pm

    I disagree with you regarding the addition of a bath having the lower rate of return. I think the statement needs to be qualified. If you are speaking of adding a full bath in a basement, I think that it may be very valid. However, if you are talking about reconfiguring the second floor or bedroom level with another bath, that is very different and the return on that is very good. I have been a realtor for over 20 years and worked with investors remodeling properties and that bath on the bedroom level makes a good deal of difference and a very positive impact on the value of the property and regaining the expense of the work done.



  • Mike Saeman Says:
    August 10th, 2012 at 7:07 pm

    I have a half acre with a 20×60 slab on north end of property and would like to build a detached garage large enough to accommodate an RV. What percentage of return can I expect. Las Vegas Nv. Ps electrical piped to slab.



  • Steve Says:
    February 11th, 2010 at 1:12 pm

    Looking at the cost vs. value shows an attic conversion to be a high rate of return on investment; newer homes have roof truss systems which make an attic upgrade impractical for most do it yourselfers.


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