Best Home Improvement Projects Revealed
If you’ve ever wondered how much of your remodeling budget will come back to you when you sell your home, you’re not alone. For more than 20 years, Remodeling Magazine has published its annual “Cost vs. Value Report,” giving homeowners valuable insight into which upgrades pay off and which ones fall short. The 2007 edition highlights how economic changes and shifting housing trends affect renovation priorities and resale value.
According to the latest findings, exterior enhancements currently offer the strongest returns. Homebuyers place high value on curb appeal, making projects like siding replacement and deck installations some of the smartest investments. Specifically, upscale siding replacement using durable fiber-cement materials tops the list. Wood deck additions and mid-range vinyl siding replacement follow closely behind, showing that outdoor improvements continue to rank high with buyers.
When it comes to interior upgrades, minor kitchen remodels offer the best nationwide return. Rather than a full-scale renovation, simple strategic updates—like new countertops, modern cabinet hardware, energy-efficient appliances, or fresh paint—can significantly boost both functionality and aesthetics without draining your wallet.
The report also highlights some broader market trends. Slower real estate appreciation and rising construction costs have contributed to a slight drop in the percentage of remodeling investments recovered compared to 2006. Even so, remodeling remains a strong financial choice. Over 60% of projects completed in 2007 are expected to recoup between 65% and 80% of their investment at resale. In practical terms, that means many improvements only cost 20 to 35 cents per dollar after resale value is factored in.
✅ Projects With the Lowest ROI
Not all renovations are created equal. Some popular upgrades fall to the bottom of the value ladder, including:
• Home office renovations
• Sunroom additions
• Backup generator installations
• Garage expansions
These improvements may enhance lifestyle, but they generally don’t translate into significant resale gains. In slower markets with a large supply of new construction, buyers are even less likely to pay top dollar for renovated older homes.
🌍 Location Matters
The value of upgrades varies significantly by region. Cities in the Mid-Atlantic and New England tend to remain steady in their cost-recouping percentages year after year. Meanwhile, states like California, Oregon, and Washington boast returns 10% higher than the national average, thanks to stronger buyer demand and property appreciation.
Surprisingly, fast-growing southern regions—including parts of the Southeast and Southwest—rank below average in recouping costs. Even desirable renovations struggle when buyers are drawn mainly to newly developed homes offering competitive pricing.
🏡 Spotlight: Houston, Texas
Houston and the West South Central region show slightly different ranking patterns compared to national figures. Here are the top-value renovation projects for homeowners in the area:
• Fiber-cement siding replacement — 93% recouped
• Bathroom remodel — 91% recouped
• Minor kitchen remodel — 88% recouped
• Basement remodel — 87% recouped
• Wood deck addition — 86% recouped
And the lowest-value projects include:
• Sunroom addition — 59% recouped
• Home office remodeling — 64% recouped
• Backup power generator installation — 68% recouped
• Roofing replacement — 69% recouped
• Garage addition — 71% recouped
✅ Smart Remodeling Starts With a Plan
As the housing market continues to shift nationwide, keeping up with cost-vs-value trends can help you make smarter investment decisions. Just like choosing stocks or retirement funds, renovating your home works best when you consider:
• Local market conditions
• Long-term goals
• Budget vs. benefit
• Quality of materials and workmanship
Improving your home should enhance both daily comfort and future financial value. With careful planning and smart project choices, your next renovation can be both a lifestyle upgrade and a rewarding investment.