Whether you're replacing worn-out fixtures, updating a room, or finally improving your curb appeal, summer is a great time to tackle home improvement projects.

Before you get started, though, it's worth asking one question: Will this project add value to my home?

The answer depends on the type of improvement. While nearly every renovation can make your home more enjoyable, some are much more likely to increase its resale value than others. Understanding return on investment (ROI) can help you decide where your renovation dollars will have the biggest impact.

What does ROI mean for home improvements?

ROI measures how much of a project's cost you may recoup when you sell your home.

A higher ROI doesn't necessarily mean you'll make money on a renovation. It means the project is more likely to hold its value compared to what you spent. Understanding ROI can help you prioritize projects that fit both your budget and your long-term goals, whether you're planning to sell in a few years or stay in your home for the foreseeable future.

Which home improvements typically have the highest ROI?

According to the 2025 Cost vs. Value Report, remodeling projects that improve curb appeal, functionality, and your home's exterior continue to deliver the strongest returns.

Some of the best-performing remodeling projects include:

• Garage door replacement – 268% ROI
• Steel entry door replacement – 216% ROI
• Manufactured stone veneer – 208% ROI
• Fiber-cement siding replacement – 114% ROI
• Minor kitchen remodel (midrange) – 113% ROI

Actual returns can vary based on your home's condition, local market trends, and the quality of the work completed.

Don't overlook routine maintenance, either. Repairing roof damage, servicing your HVAC system, fixing leaks, sealing windows, and addressing minor repairs may not be exciting projects, but they can help protect your home's value and prevent larger, more expensive problems down the road.

Which home improvements typically have the lowest ROI?

Not every renovation is designed to maximize resale value.

The same report found that several larger, more customized, upscale projects returned considerably less of their original cost, including:

• Primary suite addition – 18% ROI
• Bathroom addition – 36% ROI
• Major kitchen remodel – 36% ROI
• Bathroom remodel – 36% ROI

These projects can still be worthwhile if you plan to stay in your home for years. Just think of them as investments in your lifestyle rather than projects that are likely to pay for themselves when it's time to sell.

How can you choose the right home improvement project?

Before starting any renovation, take time to create a plan.

Ask yourself:

• How long do I plan to stay in my home?
• Is this project for resale value, personal enjoyment, or both?
• Will it improve safety, energy efficiency, or curb appeal?
• Does it fit comfortably within my budget?

Before signing a contract, it's also a good idea to get multiple estimates and build a cushion into your budget for unexpected costs. Many renovation experts recommend setting aside an additional 10% to 20% for surprises that can arise once work begins.

Make smart improvements that fit your goals

Summer is a great time to invest in your home, but the projects that add the most value aren't always the most expensive. Choosing improvements that fit your budget, your timeline, and your long-term plans can help you enjoy your home today while protecting its value for tomorrow.

If you're planning a larger renovation, a home equity line of credit may provide a flexible way to finance your project. Contact our Home Lending Team at 888-334-5120 to learn more about your financing options and find a solution that works for your budget.

Frequently asked questions

What home improvement has the highest ROI?
According to the 2025 Cost vs. Value Report, replacing a garage door offers the highest average return, with an