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These home remodeling projects offer the highest return on investment in history, report finds

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Home renovation activity may have cooled somewhat compared with its pandemic-era frenzy, but homeowners are still investing in their spaces, particularly as the spring housing market heats up.

And when it comes to the return on investment, some projects now offer the highest return values in history — with a few home upgrades averaging returns of nearly 200% for the first time ever — according to the 2024 Cost vs. Value report from Zonda Media, a housing market research and analytics firm.

Garage door replacements offered the highest average return at 194%, followed by upgrading to a steel front door, with a 188% return on investment — both worth nearly double what they were last year, the report found. 

 
 

Curb appeal is key

Forget a designer chef’s kitchen, the projects offering the greatest returns in resale value are mostly related to curb appeal rather than more glamorous kitchen and bath remodels, according to Zonda’s report.

In fact, nine out of the top 10 projects with the highest return on investment were exterior improvement projects, the report found.

“When it comes to adding resale value to a home, exterior replacement projects continue to make the most sense,” Clay DeKorne, chief editor of Zonda’s JLC Group, said in a statement.

However, with rising costs for construction labor and building materials, not everyone will get their money’s worth in improved home value.

Only three projects on Zonda’s list can typically deliver even a 100% return on investment, including replacing the garage doors, upgrading to a steel front door and installing a stone veneer.

“Discretionary projects like an upscale bathroom or kitchen remodel will feel valuable to those who make the selections but won’t provide nearly as much return to sellers,” DeKorne said.

A minor kitchen remodel — such as painting and updating the backsplash — did provide high returns, at 96% of costs recouped. But major upscale kitchen and bathroom remodels did not, the Zonda survey found, with returns of 38% and 45%, respectively.

‘Un-sexy upgrades are more important’

With high home prices and a tight supply of homes for sale, sellers need to be especially strategic in their efforts to attract the buyers willing to pay top dollar in today’s market, according to Todd Tomalak, Zonda’s principal of building products research.

Further, financing renovations or improvements with a home equity loan or home equity line of credit have gotten more expensive along with the Federal Reserve’s string of 11 rate hikes since 2022, including four last year.

“A new garage door or new entry door can make a pronounced difference,” Tomalak said. “It could be the thing that makes one house stand out against all the others, making the home worth a higher price.”

To get the best bang for your buck, talk to a realtor in your area about specific renovations that may increase the value of your home and which ones to skip, the CNBC article advised.

Read more at CNBC.com

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This Is How Much the Average Kitchen Remodel Actually Costs, According to Experts

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The kitchen is the heart of the home, so it makes sense that you’d want it to look good — and that’s why it’s one of the first spots people look at remodeling when they’ve got the chance to upgrade their space.

The cost of a kitchen remodel, though, can vary wildly based on what you’re updating, and how big of a renovation you’re planning. 

Apartment Therapy spoke to six experts to figure out exactly how much a kitchen renovation or remodel might set you back, and the experts quoted ranges from $1,000 to $300,000 — keep reading to see how that cost breaks down.

 
 

What Is the Average Kitchen Remodel Cost?

On average, you can expect to spend about $45,000 for a full kitchen remodel, the experts share. That cost, of course, depends on everything from the size of your kitchen and where you live, to the type of home you have and the quality of materials you choose. Labor expenses will vary, too, based on who you hire, how many hands they’ll need, and their availability (more on that below). And, unfortunately, Mazzarini notes, “with the lingering effects of the pandemic, costs are still trending high.”

Basic Kitchen Remodel Cost

A minor remodel can cost between $1,000 to $25,000. On the lowest end, you’d be doing simpler things yourself like painting your cabinets, upgrading hardware, shopping appliance sales, and doing some labor work — like hanging drywall or doing small carpentry jobs — on your own. This price range is for the DIYers who want to have a hand in (almost) every part of the process but don’t want to tackle major things like moving plumbing, electricity, or gas lines. When you add in new countertops and upgraded flooring, you’ll head to the higher end of this range.

Midrange Kitchen Remodel Cost

A moderate remodel costs between $25,000 to $60,000. In this price range, you’ll be replacing things like countertops, flooring, appliances, and cabinets. Lighting and walls may also be on the docket for this level of renovation. The majority of the cost here will come from cabinetry and appliances. Cabinets are often considered the most expensive part of a remodel, so consider painting what’s there instead of fully replacing them to keep costs down.

High-End Kitchen Remodel Cost

A major remodel of your kitchen will range from $60,000 to $300,000. For high-end renovations, you’ll be doing things like moving around plumbing, potentially adding gas lines, or even completely demolishing the existing footprint of your kitchen and redoing it into something new. Finishes like hardware and molding may be more upscale or luxury, and appliances will likely be top-of-the-line. Here’s the chance to grab those custom countertops you’ve always wanted, with a chic backsplash to match.

Kitchen Renovation Cost Breakdown

The cost of a kitchen remodel isn’t just for the materials — you’ll also need to pay for the workers you hire along the way. 

Labor Cost

For your remodel’s labor cost, Hagood says you’ll need to account for “the fees for skilled tradespeople, such as carpenters, plumbers, electricians, and general contractors, as well as any permits and inspections required for the project.” You’ll also include the cost of any designers you hire, which Babcock says runs $65-$250 per hour. Expect for your renovation cost to split up to around 60% materials and 40% labor.

Item Cost

  • Cabinet painting — $2,000 to $7,000

  • Cabinets — $25,000 to $75,000

  • Appliances — $1,000 to $50,000

  • Countertops — $1,500 to $20,000

  • Flooring — $5,000 to $10,000

  • Hardware and faucets — $5,000 to $15,000

  • Plumbing — $2,000 to $20,000

  • Electrical — $2,000 to $20,000

  • Lighting — $50 to $20,000

  • Painting — $200 to $3,000

  • Kitchen Island — $4,500 to $7,000

As always, remember that kitchen remodels are not one-size-fits-all. Your overall cost will depend on “the extent of the renovation, including whether you’re changing the kitchen’s footprint, or just updating existing elements,” Hagood says, which will significantly raise the cost.

Read more at ApartmentTherapy.com

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6 Sneaky Tips for Saving Money When You Remodel

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There’s something romantic, rewarding, and even downright inspiring about bringing an outdated house into the 21st century—but ask anyone who’s been there and done it, and they’ll tell you the remodel process will test your patience, your budget, and perhaps even your sanity.

“It’s a journey into the land of unknowns,” warns Mike McGrew, a former treasurer for the National Association of Realtors® and CEO of McGrew Real Estate in Lawrence, KS. “You just don’t know what’s inside that wall and how much more it might cost to remove, say, that sewer line until you get in there.”

That’s not to say that renovating a home can’t pay off big-time, especially in the long run. And luckily, there are ways to cut costs during the process. Let’s check some of them out.

1. Be armed with info about competing contractors

Selecting a trustworthy contractor can make a world of difference in the timeline of a home remodel, which will ultimately save you money. Of course, you’ll want to ask friends and acquaintances for recommendations and follow up with references. But you might still be concerned that your budget isn’t quite as generous as the one deployed by your next-door frenemies, the Bickles. (Darn you, Bickles!) Do you have enough cash to make your dream renovation happen?

Here’s a little-known secret: Name-drop competitors and the prices they’ve quoted. More than likely, the contractor you’re meeting with will be willing to strike a deal to win your business.

Once you narrow down your options, you should get at least three written estimates to compare costs and timelines, and verify applicable trade license, bonding, and insurance status. And here’s a helpful tip: Insist on a payment schedule tied to project progress and keep at least 10% back until the job is completed to your satisfaction.

Now, if you have some basic DIY knowledge (or a kind friend willing to pitch in), you can save by skipping the contractor. But make sure you know what you’re getting into—there are some home improvement projects you simply shouldn’t DIY.

2. Know where to cut corners

As popular opinion has it, kitchens and bathrooms are the most desirable areas in the home to renovate, both yielding a return on investment around 70% or more. But a major renovation for a kitchen or bathroom could cost around $29,000—and there’s no actual guarantee on that ROI estimate.

If that’s a scary number for you, don’t despair. There are some simple ways to spruce up these areas without spending too much.

In the bathroom: A fresh coat of paint here (or just about anywhere, for that matter) and new countertops can “really dress up the place,” McGrew says.

In the kitchen: You can easily make your kitchen look more expensive with a few simple fixes, says Deidre Hyland, an agent for BHHS Fox & Roach Real Estate Agents & Associates in Medford, NJ. For example, you can replace cabinet and drawer knobs with more modern hardware or update appliances (when there’s a sale at one of the big-box stores).

3. Time your remodel just right

Homeowners frequently wait for warm weather of spring—along with that lovely spring tax refund—to start their home remodeling projects. But kicking off a renovation between January through early March—when there’s significantly less demand for contractors and materials—could allow you to land some good deals. Just be aware that weather conditions could make the project take longer.

Frozen ground and dry air are actually great conditions to dig foundations and pour concrete footers, and with some planning, you might be able to, say, complete a foundation or frame a room addition before the rainy season is in full force—and well ahead of when prices start to creep higher.

4. Shop floor models

When it comes time to shop for a new refrigerator or oven, don’t forget that sometimes the best deals are in plain sight. In fact, floor models often are marked down by as much as 20%.

Just beware, McGrew warns: If a product on display is plugged in or is otherwise being used, you should check the warranty to see if the deal makes sense.

Many stores also have a small inventory of “scratch and dent” items that are marked down. And when they’re not, customers can point out the flaws and see how low a sales associate is willing to mark it down—sometimes, the price can be reduced by up to 20%.

Other times, you can luck out with other people’s discards.

“You can find discounted appliances that were purchased and returned just because they didn’t fit,” says Todd Ricci, owner of C. Ricci & Sons Painting Contractors in North Haven, CT. “They are still brand-new.” (This is where we offer a friendly reminder to measure your space before starting any remodel! You’re welcome.)

5. Opt for ready-to-assemble cabinetry

New cabinets can easily become one of the most expensive parts of a kitchen remodel, accounting for as much as 40% of your renovation budget. But going for ready-to-assemble or semi-custom cabinets can cut the cost of cabinets by nearly half.

Prices typically start from as low as $60 per foot for budget to midlevel cabinets. Compare this to the cost of custom cabinets—which range from $500 to $1,200 per linear foot—and you’ll quickly realize this simple workaround could land a pretty sweet deal. (The range in prices depends on factors such as style, material, and cost of installation.)

6. Reuse materials

Ask your contractor if he has any materials left over from a previous job that you could snag at a fraction of the cost. Of course, this means you’ll need to be flexible about your materials and have some wiggle room when it comes to a specific paint color or shade of countertop.

Maybe that gray granite is just a tad lighter than you originally had in mind, but it still looks good—and, of course, will put a lighter load on your project’s bottom line.

We’re not saying you won’t drop a chunk of change on upgrading your home. You will! But that doesn’t mean you can’t be smart about it and save some cash along the way.

Learn more at Realtor.com

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If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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