Return on Investment (ROI) from Home Renovation
Although many homeowners complete home improvement projects to improve aesthetics or comfort, many also complete them to boost their home value. According to Today’s Homeowner’s ROI of Your Home Remodel report, remodeling projects boost your return on investment (ROI) by 69% on average. These results vary based on the type of project, home location, and total investment. Below, we’ll review remodeling projects by ROI, based on data from the NAR 2022 Remodeling Impact Report.
Interior Remodeling ROI
According to the NAR Remodeling report, homeowners recoup over 100% of their investment from hardwood floor refinishing (147%) and new wood flooring (118%). Insulation upgrades also provide 100% ROI plus long-term energy savings. According to the U.S. Department of Energy, insulation upgrades can save you up to 20% in heating and cooling costs. Other home improvement projects, such as basement conversions and closet renovations, offer ROIs of 86% and 83%, respectively.
| Interior Remodeling Project | Return on Investment (ROI) Percentage |
|---|---|
| Hardwood flooring refinish | 147% |
| New wood flooring | 118% |
| Insulation upgrade | 100% |
| Basement conversion to living area | 86% |
| Closet renovation | 83% |
| Attic conversion to living area | 75% |
| Complete kitchen renovation | 75% |
| Bathroom renovation | 71% |
| Kitchen upgrade | 67% |
| Add new bathroom | 63% |
| Add new primary bedroom suite | 56% |
Source: National Association of Realtors