Homeowners planning updates or remodels often want to know which projects deliver the best resale return on investment. A Remodeling Magazine Cost vs. Value report found that installing new fiber-cement siding produced one of the highest returns for projects costing more than $10,000, with an average cost around $13,382 and an estimated 80% return.
The survey compared the average cost and resale value retained for the 35 most popular remodeling projects and was developed in partnership with real estate and construction research organizations.
Overall, the report showed that many common renovation jobs return less in added home value than the cost to complete them, and homeowners might typically recoup roughly 60% of remodeling expenses when they sell.
Curb appeal remained a primary concern for buyers: exterior improvements generally performed better than many interior projects, helping attract attention from prospective buyers in a crowded market.
Over time the cost-to-value equation for home improvements has become less favorable. For example, a mid-range bathroom that once recouped most of its cost at resale now often returns a substantially smaller share of the investment.
The data also highlighted that the more you spend on a single remodel, the lower the percentage of cost you are likely to recover at resale. Mid-range kitchen updates typically return a higher percentage than top-of-the-line renovations, even though the latter add more absolute value.
Some projects showed especially low percentage returns; for instance, certain home-office renovations reported among the lower returns by percentage.
Smaller projects can perform well on a percentage basis—exterior door replacement is often a strong performer in the under-$10,000 bracket, while projects like wood decks and minor kitchen remodels also ranked well among larger projects.
When planning a remodel, consider both long-term value and potential risks; for guidance on planning and construction risks, see Building Information Modeling and Remodeling Risks.
If your property falls into a higher market segment or has special features, it’s wise to review coverage options and protection strategies; one useful resource is High Value Dwellings Insurance.
If you want personalized guidance about how planned improvements might affect your property value or insurance needs, talk to an agent who can review your specific situation.
Frequently Asked Questions
Which home improvements usually give the best return?
Exterior projects that boost curb appeal—like siding, entry doors, and decks—tend to deliver higher percentage returns than most large interior renovations.
Do high-cost remodels always increase resale value dollar-for-dollar?
No; larger, higher-end projects typically add more total value but often return a smaller percentage of the cost at resale than more modest renovations.
Are small projects worth the investment?
Many smaller, lower-cost improvements can offer excellent percentage returns and help a home stand out to buyers without a major outlay.
Should I consider insurance before remodeling?
Yes; remodeling can affect coverage needs and expose the project to construction risks, so reviewing your policy before work begins is recommended.
How can I estimate the likely resale impact of a remodel?
Research local market trends, consult real estate professionals, and consider an insurance or valuation review to estimate how a remodel may affect resale value.