A report has found that these home remodeling projects provide the highest return on investment in history.

• Not all home renovations offer the same returns on investment.
• The report by Zonda reveals that the top projects with the highest resale value are primarily focused on enhancing a home's curb appeal.
• According to Clay DeKorne, Zonda's chief editor, exterior replacement projects are the most effective way to increase a home's resale value.

Despite a slight decrease in home renovation activity during the pandemic, homeowners continue to invest in their spaces as the spring housing market becomes more active.

According to the 2024 Cost vs. Value report from Zonda Media, some home upgrades now offer returns of nearly 200% for the first time ever, making them one of the highest return on investment projects in history.

The report found that 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 of which are nearly double what they were last year.

Curb appeal is key

According to Zonda's report, curb appeal projects offer the greatest returns in resale value, rather than designer chef's kitchen and bath remodels.

According to the report, nine out of the top 10 projects with the highest return on investment were exterior improvement projects.

According to Clay DeKorne, chief editor of Zonda's JLC Group, exterior replacement projects are still the most effective way to increase a home's resale value.

Not everyone will receive a return on their investment in home improvements due to increasing construction labor and material costs.

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

"While discretionary projects like an upscale bathroom or kitchen remodel may seem valuable to homeowners, they won't provide much return for sellers," DeKorne stated.

The 20% home down payment is not a universal requirement. Capital gains taxes may be triggered by a home sale. Despite a decline in home remodeling, demand remains strong.

While a minor kitchen remodel, including painting and updating the backsplash, yielded a high return of 96% of costs recouped, major upscale kitchen and bathroom remodels did not, with returns of only 38% and 45%, respectively, according to the Zonda survey.

Angelica Ferguson VonDrak, an associate real estate broker based in Rhinebeck, New York, stated that investing in expensive kitchen upgrades may not yield a profitable return.

'Un-sexy upgrades are more important'

In today's market, with high home prices and a limited supply of homes for sale, sellers must be strategic in their efforts to attract buyers willing to pay top dollar, according to Todd Tomalak, Zonda's principal of building products research.

The cost of financing renovations or improvements with a home equity loan or home equity line of credit has increased due to the Federal Reserve's 11 rate hikes since 2022, with four occurring last year.

""A distinctive garage or entry door can significantly increase a home's value," Tomalak stated."

To maximize the value of your home, consult with a local realtor about recommended renovations and which ones to avoid, advised VonDrak.

In some areas, putting in a pool can pay off threefold, while in others, such a hefty investment can fall flat, she said.

"Upgrades such as an HVAC conversion, new roof, or windows are more important, according to VonDrak," he said, emphasizing the un-sexy nature of these improvements.

"Decluttering and replacing old furniture with new or slipcovers can make everything feel fresh and new," VonDrak said.