The ROI of renovation

If that kitchen needs new countertops, your roof leaks or you want to swap out a tub for a shower, the cost might seem like a major deterrent.

But if you’re a homeowner with equity in your property, a Home Equity Line of Credit (HELOC) could be just the answer. A HELOC allows you to borrow funds based on the value of your home, and it gives you plenty of time to pay it back.

Ready to explore what you can do with a HELOC? Apply now!

A HELOC could offer flexibility when you need funds for projects, and unlike a Home Equity Loan that provides a lump sum upfront, a HELOC allows you to access cash during a set period.

Called the draw period, it typically lasts five to 10 years. You can use your HELOC funds for home improvement, giving you more freedom than a traditional second mortgage or personal loan.

Using the return on investment (ROI) as a benchmark, you can examine the numbers with a critical eye to help you finalize and prioritize your home improvement goals. A look at the numbers often can help you determine whether a particular upgrade is a critical must-have or whether it can wait its turn in favor of other home improvement projects.

To help you out, we've compiled a list of some of the most sought-after remodels in the market today, along with their ROI percentages and some perspective on how those numbers have changed.

When it comes time for you to dive into your home improvement to-do list, we’re here to help you find the financing solution that makes sense for you, your family and your unique circumstances.

If you are ready to get going on home improvement projects of practically any scope, speak with one of our Loan Officers. We have many types of loan options and home equity products like a Home Equity Line of Credit to help you bring the vision of your home to reality.

Worth vs. value

Home improvement projects can be expensive and invasive, especially if you work from home. Depending on the intensity and complexity of the project, you might need to relocate the family while upgrades are underway. It can likewise take some time after all updates are complete to get back some sense of normalcy.

We mention these factors not to put you off of home upgrades but to make sure that you factor these aspects into your thinking. After all, whether upgrades add value to your home and whether they are worth it to you can be two different things.

With that in mind, there are two things you should ponder before embarking on your home’s journey of renewal. For each upgrade, consider the following:

The total cost of the home improvement vs. the quality of life it will add
The upgrades worth in terms of the value it will add to your home

Ultimately, whether a particular home improvement project is worth the cost and interruption is highly subjective. There's nothing wrong with completing an upgrade simply because you want it or because it brings you joy. The list we’ve prepared with the ROI numbers is simply to give you examples so you can get an at-a-glance view into how much popular upgrades can contribute, on average, to the value of your home.

ROI numbers

ROI for home improvments is measured by how much of the cost of a particular makeover is recouped once the house is sold relative to how much it costs overall. The ROI numbers presented here are national averages. These can vary from region to region depending on a number of factors, so bear that in mind and categorize them as estimates.

Here is Remodeling magazine’s annual release of its Cost vs. Value report.¹ It includes relative ROI rates for some of the most popular home improvements in 2025, the latest year for which full data is available.

HVAC conversion/electrification

Cost: $19,484
Value added: $14,053
ROI: 72%

Our first item on this list is one that in 2024 sat about 66% ROI. While there are any number of factors that could affect why converting a home’s HVAC system from fossil fuels to purely electric could change in a year, it proves that this is a popular item to consider.

Something to note, however, is that such a home improvement’s ROI is never more relevant than in the year that the house is sold. So, if you just completed this type of upgrade but don't think you'll sell your house for a few more years, don't worry too much about changes from year to year. Historically, this is one of the most reliable and sound improvements.

Garage door replacement

Cost: $4,672
Value added: $12,507
ROI: 268%

Garage door replacement has skyrocketed in value since last year. In 2024, this upgrade already boasted an impressive rate of 194% value, meaning that the upgrade effectively paid for itself and then some. In 2025, the ROI was an incredible 268%.

Considering that this type of upgrade has one of the lowest costs on this list, it makes it an ideal starting place for homeowners beginning their suite of home improvements.

Manufactured stone veneer

Cost: $11,702
Value added: $24,328
ROI: 208%

Another home improvement that had over a 100% ROI in the previous year, a manufactured stone veneer on the exterior of a home has continued to rise in popularity. From 153% in 2024, its ROI increased to 208%. Considering the relatively low price overall, this is another way that homeowners can dramatically spruce up the appearance of their home while increasing the property value. It also goes to show the enduring power of curb appeal to potential buyers.

Kitchen remodel

Minor kitchen remodel, midrange

• Cost: $28,458
• Value added: $32,141
• ROI: 113%

Major kitchen remodel, midrange

Cost: $82,793
Value added: $42,130
ROI: 51%

Major kitchen remodel, upscale

Cost: $164,104
Value added: $58,561
ROI: 38%

So far, we've covered home upgrades that have undergone radical changes, both up and down. All three kitchen remodel types, however, do show differences from 2024, though perhaps not to as great a degree.

Overall, all three increased slightly in price. That's common across the board when you factor in general inflation and other economic factors.

The midrange minor remodel was the clear ROI winner of the three, going up to 113%, a change of about 15% increase from the previous year. Both the midrange major remodel and the upscale remodel ROI numbers are lower for the effort and resources involved.

Still, the kitchen is likely the first thing a potential buyer might notice in a house without furniture. And the advantages of having a modernized and upgraded kitchen while you live in the house can seldom be overstated.

Siding replacement

Fiber cement

Cost: $21,485
Value added: $24,420
ROI: 114%

Vinyl

Cost: $17,950
Value added: $17,313
ROI: 97%

Curb appeal is a tried-and-true approach to hook a buyer before they set foot in the house itself. As a stone veneer is one way to increase that perceived value, siding is another way to beautify and protect the exterior of the home. Not surprisingly, both types of siding have solid ROI numbers behind them this year.

Both fiber cement and vinyl options increased in ROI from the previous year, with fiber increasing more. This would suggest that the increased durability and fire-resistance of fiber cement over vinyl is more attractive to homeowners looking to preserve their homes against the elements.

Window replacement

Vinyl

Cost: $22,073
Value added: $16,657
ROI: 76%

Wood

Cost: $26,781
Value added: $18,764
ROI: 70%

Here is a category that is very close in both average price and ROI to what they were a year ago. Both types of window replacement increased slightly in price and in ROI, though there wasn’t a big change for either of them.

Deck addition

Wood

Cost: $18,264
Value added: $17,323
ROI: 95%

Composite

Cost: $25,096
Value added: $22,199
ROI: 89%

Decks have long been in-demand home features across the country, particularly in the warmer months when summer get-togethers and cookouts are popular. It seems that decks of both the wood and composite types have seen a jump in ROI numbers.

Though changing slightly in price, their return-on-investment numbers have increased. While these numbers may not be as high as other home improvement types, their increase would seem to tell the tale that the demand for decking is on the rise.

Bath remodel

Midrange

Cost: $26,138
Value added: $20,915
ROI: 80%

Universal design

Cost: $42,138
Value added: $25,812
ROI: 61%

Upscale

Cost: $81,612
Value added: $34,000
ROI: 42%

When it comes to remodeling your bathroom, there's good news and bad news here. The good news is that overall all three levels of bathroom remodel have remained close to their price tags from the previous year. The downside is that the more upscale the remodels, the lower the ROI numbers become.

Primary suite addition

Midrange

Cost: $170,517
Value added: $55,097
ROI: 32%

Upscale

Cost: $351,613
Value added: $63,136
ROI: 18%

Adding or overhauling the space of the primary suite of your home can definitely be an extra draw for would-be homebuyers. Whether that takes the form of adding a new bedroom, installing a gas-powered fireplace with its own chimney, rearranging the internal configuration of your home or all of the above, you're adding features that could help your home sell quickly.

However, the high price tag of such an undertaking may not favor a return on the kind of money it takes to make such a change. In both categories, the ROI tends to be low relative to the cost. The upscale category, for example, has the lowest ROI of any on this list at just 18%, but also has the highest price of any entry here as well. So, if you plan to make such a change to your home, be prepared for it to give back only a third or quarter of what you put into it.

How to decide on a project

ROI may not be the deciding factor for you.

Some updates may be necessary, such as to accommodate the addition of a family member, whether a baby or an elderly relative. Or perhaps you just need to liven up the space to give you some quality-of-life improvements.

A Home Equity Line of Credit could be a smart way to tap into your home’s value when you need extra funds, but it’s important to borrow wisely.

A HELOC gives you access to money on an as-needed basis, often with a lower interest rate than a credit card or personal loan.

If you're ready to put your home equity to work, OriginPoint’s HELOC options make it easy to get started with competitive rates, flexible terms and a seamless application process.

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