Looking forward to 2025, many homeowners will plan renovations to refresh their spaces and boost their property value. If updating your home is on your New Year's resolutions list, new research has revealed the most profitable home renovations in the USA, with garage door replacement ranking number one.
Experts in bathroom and kitchen remodels at Oakridge Remodels analyzed the average cost and resale value of over 20 popular home renovations, including entry door replacement and minor kitchen remodeling. They calculated the average return on investment for each project to reveal which ones are the most profitable. A return on investment under 100 percent suggests a project is not profitable.
“It is interesting to see which home renovation projects are the most profitable, both on a state and national level," says Arthur Taylor, founder of Oakridge Remodels. “In the US as a whole, there are only three projects that are profitable: garage door replacement, entry door replacement and stone veneer addition. However, the profitability of different renovations varies widely depending on the state, local housing market and buyer preferences.
“Renovations can be great for aesthetics, however, if your goal is to increase property value to sell or rent, it is best to stick to projects with a return on investment over 100 percent. This ensures you are not only improving your home but also maximizing the financial benefits.
“Hopefully, this research will help to inform homeowners looking to increase their property value on which projects are worth their time and money.”
Rank | Project | Average cost ($) | Average resale value ($) | Return on Investment (%) |
1 | Garage door replacement | 4,513 | 8,751 | 193.9 |
2 | Entry door replacement (steel) | 2,355 | 4,430 | 188.1 |
3 | Stone veneer addition | 11,287 | 17,291 | 153.2 |
4 | Grand entrance addition (fiberglass) | 11,353 | 11,054 | 97.4 |
5 | Minor kitchen remodel - midrange | 27,492 | 26,406 | 96.1 |
6 | Siding replacement (fiber-cement) | 20,619 | 18,230 | 88.4 |
7 | Decking addition (wood) | 17,615 | 14,596 | 82.9 |
8 | Siding replacement (vinyl) | 17,410 | 13,957 | 80.2 |
9 | Bath remodel - midrange | 25,251 | 18,613 | 73.7 |
10 | Decking addition (composite) | 24,206 | 16,498 | 68.2 |
11 | Window replacement (vinyl) | 21,264 | 14,270 | 67.1 |
12 | HVAC electrification | 18,800 | 12,422 | 66.1 |
13 | Window replacement (wood) | 25,799 | 16,222 | 62.9 |
14 | Roofing replacement (asphalt shingles) | 30,680 | 17,461 | 56.9 |
15 | Major kitchen remodel - midrange | 79,982 | 39,587 | 49.5 |
16 | Bath remodel - universal design | 40,750 | 20,148 | 49.4 |
17 | Roofing replacement (metal) | 49,928 | 24,034 | 48.1 |
18 | Bath remodel - upscale | 78,840 | 35,591 | 45.1 |
19 | Major kitchen remodel - upscale | 158,530 | 60,176 | 38.0 |
20 | Primary suite addition - midrange | 164,649 | 58,484 | 35.5 |
21 | Bathroom addition - midrange | 58,586 | 20,334 | 34.7 |
22 | Bathroom addition - upscale | 107,477 | 34,997 | 32.6 |
23 | Primary suite addition - upscale | 339,513 | 81,042 | 23.9 |
Source: These insights are based on analysis by Oakridge Remodels of city data – 2024, provided by the Journal of Light Construction. For more on Oakridge Remodels, visit www.oakridgeremodels.com.
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