Which Home Improvement Projects Are Worth Saving For?

There’s no place like home, as the saying goes. And for many of us, purchasing or improving our homes are some of the most important saving goals. In our recent customer survey, more than three-quarters of Growth Savings customers (76%) said home improvement projects are worth saving for.

For example, Growth Savings customer John C. said he is saving for “household maintenance and renovations,” and Cameron H. is saving to “add extra bedrooms to my house.”

Updating your home or purchasing a fixer-upper to update over time may improve your quality of life and enjoyment of your surroundings. But many homeowners also expect home improvements to increase the value of our homes, bringing you higher earnings when you’re ready to sell. An updated home is likely to sell quicker or for more money than an outdated home, but some home improvement projects yield a greater return on investment than others.

According to the Journal of Light Construction’s annual Cost vs. Value Report, homeowners are more likely to recoup their investments on specific exterior updates when they sell their homes than on interior updates. But certain interior changes, such as a kitchen remodel, can yield greater value on resale than others. Here’s a look at four types of home improvement projects that can result in the greatest value relative to their cost.

The top four projects for recouping cost at resell were all related to the front exterior of a home in the 2024 Cost vs. Value Report. The update with the highest value relative to cost was garage door replacement. On average, the project cost $4,513 and resulted in a resale value increase of $8,751. That allows homeowners to recoup 194% of their costs on average.

Similarly, replacing the front door of the home also netted a high value relative to cost. Homeowners who replaced the front door with a steel door recouped 188% of their costs on average, while those who replaced the front door with a fiberglass door recouped an average of only 97% of their costs upon resale.

Another project that adds curb appeal as well as a high return on investment is adding manufactured stone veneer to a home’s exterior. Popular options include adding stone veneer around the entryway or the bottom third of the home’s street-facing façade. On average, homeowners spent $11,287 on exterior stone veneer updates in 2024, resulting in an average $17,291 increase in resale value, for a 153% return on their investment.

If you’re saving up to remodel your kitchen or bathroom, your project may not increase the value of your home by as much as you spend, but it might come close.

Homeowners who undertake a minor kitchen remodel (with an average price tag of $27,492) can expect to recoup 96% of their costs if they resell their home, according to the report. On the other hand, a major kitchen remodel, with an average price tag of $158,530, will only allow homeowners to recoup an average of 38% of the costs upon resale. While these costs are the average based on the report, actual costs will depend on the materials used and whether you plan to DIY or outsource.

For a midrange bath remodel, homeowners spend an average of $25,251, and the project provides an increase in resale value of $18,613 – recouping an average of 74% of your investment.

Some backyard updates may bring extra enjoyment outdoors, but they might not result in recouping your full investment. For example, adding a new wood deck costs an average of $17,615. When you sell your home, that new deck will increase the price by an average of $14,596, allowing you to recoup about 83% of your costs.

If you spend more for a composite deck, with an average cost of $24,206, homeowners can expect to recoup an average of only 68% of their costs.

Adding a new room to your home can be costly and may not increase the value of your home as much as it costs. For example, adding a midrange primary suite in 2024 cost an average of $164,649 but boosted resale value by only $58,484. That means homeowners recovered an average of 36% of their costs.

Similarly, an additional bathroom may improve your quality of life but is not likely to boost the value of your home enough to recoup the associated costs. Adding a midrange bathroom costs an average of $58,586 but increases the price of a home by just $20,334, or 35% of the investment.

When considering a home improvement project, it’s wise to think about the potential value the update might add to your home in the case of resale. However, that’s not the only criteria that matters. It’s also important to consider your quality of life and your enjoyment of your home; even if you never plan to sell, you may find that an additional bathroom, a new deck, or an exterior siding replacement are well worth your savings because they help make your house into the home you want.

Disclaimer: This article is for general information and education only. It should not be considered financial or tax advice.