Curious to know which home improvements give you the most bang for your buck?
Well you’re not alone. Homeowners are investing big bucks into renovations right now. In fact, Harvard’s Joint Center predicts remodeling expenditures will reach a whopping $526 billion by early 2026!
Here’s the thing…
Not all home improvements are created equal.
Some renovations return over 200% of your money back when it’s time to sell. Meanwhile others barely earn back 30%.
And thats why knowing which home improvements will give you the best ROI before you start work is extremely important.
What you’ll learn:
- Why Exterior Improvements Beat Interior Projects
- Best Home Improvements with Highest ROI
- Where Does Plastic Cladding Come In?
- What Improvements Should Be Avoided?
Why Exterior Home Improvements Beat Interior Projects
Here’s a fun fact most people don’t know…
No matter what year you look at… exterior home improvements ALWAYS beat interior projects for ROI. It’s been happening for decades and there’s data to prove it!
Why is this? It’s because curb appeal is KING!
When someone is viewing your home, they’re making a decision about it within seconds of laying eyes on it. Having peeling paint, cracked walls and a drab looking property is going to send potential buyers running for the hills.
Plus any improvements you make on the inside can be completely ruined by having an awful exterior.
Hence why plastic cladding has blown up over the last few years. Putting up uPVC cladding on the outside of a home not only makes it look nice but improves its weather protection and insulation. It’s low maintenance, durable and way cheaper than other materials like wood and stone.
Oh and the best thing about plastic cladding..
Doesn’t need repainting every few years like regular wooden fences or walls…. Plastic cladding can last anywhere from 20-30 years with minimal effort. Saving you money on maintenance and keeping your curb appeal high long term.
A modern house that looks well cared for and energy efficient from the outside is more appealing to buyers. Simple as that. That excitement and extra attention your house will receive translates into your sale price!
Best Home Improvements with Highest ROI
Okay so which improvements are we talking about here?
Well according to the latest 2025 Cost vs. Value Report… exterior replacement projects take the lead once again!
Let’s take a look…
Garage Door Replacement
Hold up. Wait just a minute….
Garage door replacement has the highest ROI? Yep. You read that right!
For the second year in a row, homeowners are getting back more than double what they spend on replacing their garage door. How does it manage an ROI of 268%? Let’s find out…
A new garage door cost next to nothing compared to other renovations. It instantly transforms the front of your property, making it look modern and improved energy efficiency.
Looks good AND keeps your house warmer? Yep, you’ve struck gold.
Steel Entry Door Replacement
Steel entry door replacements returned home owners 216% of their spend in 2025. Simple renovation that can increase your home’s value more than most projects on this list.
Door replacements are perfect for making a great first impression. They improve home security, look attractive on the front of your house and lets buyers know you care about your property.
Manufactured Stone Veneer
Stone veneer came in third this year with around a 208% return.
Stone veneer is usually installed on a section of your home instead of the entire property. It adds major architectural detail to the front of houses without breaking the bank.
Minor Kitchen Remodel
The best home interior improvement was minor kitchen remodeling coming in at 113%. Don’t get too excited though.
It’s important to remember the word “minor” here. Replacing cabinets, countertops and appliances is considered “minor.” Installing a whole new kitchen from scratch is not.
Major kitchen renovations cost thousands upon thousands of pounds but only offer up a 38% ROI. Yikes.
Exterior Cladding & Siding
Replacing your existing exterior cladding came in surprisingly high this year. Things like plastic cladding for houses allow homeowners to refresh the outside of their home for cheap.
Not only does cladding make your property look good… it improves insulation. Keeps your house warmer in the winter and cooler in the summer. Which in turn saves you money on energy bills. Saving you money NOW and when you sell your house.
What Home Improvements Should Be Avoided?
Believe it or not… some home renovations should be avoided all together. No matter how great they may sound, these projects won’t offer you a good return when it comes time to sell.
Here are some of the worst offenders…
- Swimming pools — Beautiful to look at and fun to own. But on average they only return 7% to 8% of your investment. Ouch.
- Master addition with 2 or more bathrooms — Great for families, but only offer up a 30% to 50% return on your money.
- Highly personalized improvements — Things like home cinemas, wine cellars and custom work are hardly ever used by the next owner. Stay away from this stuff.
- Luxury additions well above the norm — Going well above your neighborhood homes are worth will lose you money. You can’t charge extra just because you spent more.
Always remember this… Try not to spend over 30% of your home’s value on renovations. The more you spend past this point the less return you’ll get when selling up.
How To Choose The Right Improvements
When it comes down to it…. picking the right improvements depends on 2 key things…
Cost vs value. How much is the renovation going to cost vs how much value does it add to your home? Exterior projects tend to win this category hands down.
State of the property. Never upgrade a nice part of your house when something else is broken. A sturdy new fence won’t matter if your roof is falling in. Always fix what needs fixing before you start spending money.
The safest bet is to look for inexpensive improvements that increase your home’s visual appeal. Projects that better curb appeal, energy efficiency and the overall condition of your property are what buyers care about.
Bringing It Home
The home improvements with the best ROI have a few things in common.
They’re inexpensive. They make your home look better from the outside. And they create a modern, well kept appearance.
Outside improvements beat expensive ones every time. Simple kitchen remodels beat grand renovations. And personal luxury projects are never appreciated by the next homeowner.
If you keep your renovation projects centered around these things you’ll do great…
- Make your home WOW from the outside.
- Buy materials that require LOW maintenance.
- Look for energy efficient improvements.
Follow those 3 tips and any home improvement will benefit your homes long term value. Don’t get suckered into fancy gadgets and expensive remodels. Stick with what matters and the ROI will do its magic.
