When thinking of home renovations, a lot of homeowners decide which projects they want to tackle based on the upfront cost of the project. Obviously this is an important aspect to consider, but it doesn’t tell the whole story. One thing we tell customers who are looking to upgrade their homes is to look at the return on investment (ROI) alongside the initial price tag. One thing that's happened over the last year is that upfront costs are rising, which you probably already knew—but so are the ROI's of many of these projects listed below.You can see how these upfront costs and ROIs have changed over the last year by checking out our blog from 2020.

Below are some of the home renovation projects with the best ROI, based on data collected for the Remodeling 2021 Cost vs. Value Report. The data shows the average upfront cost alongside the resale value of each project. The information below uses the average cost and value of projects across Iowa, Minnesota, Missouri, the Dakotas, Nebraska, and Kansas.

Minor Kitchen Remodel (Midrange) 

Upfront Job Cost: $25,009

Resale Value: $17,351   

Upfront Cost Recouped: 69.4%

Kitchen and bathroom remodels have some of the best ROI of any home project. Because styles and preferences of home buyers can change quickly, choosing “midrange” amenities for your remodel is best for the ROI. 

Siding Replacement (Fiber-Cement)

Upfront Job Cost: $18,414

Resale Value: $11,891

Upfront Cost Recouped: 64.6% 

Fiber-cement siding has a better ROI than vinyl siding—but it's also a bit more expensive upfront. 

Entry Door Replacement (Steel)

Upfront Job Cost: $1,990   

Resale Value: $1,278

Upfront Cost Recouped: 64.2% 

The ROI on entry doors is at the top of this list because your entrance doors help form buyers’ first impressions.

Window Replacement (Vinyl)

Upfront Job Cost: $18,460 

Resale Value: $10,868 

Upfront Cost Recouped: 58.9% 

One aspect of replacing your windows that isn’t factored into these numbers is the money you can save on energy costs— and this can be a significant amount if you have a lot of windows and/or your current windows are older. 

Bathroom Remodel (Universal Design)

Upfront Job Cost: $36,824 

Resale Value: $19,623

Upfront Cost Recouped: 53.3%  

As more people are looking to age-in-place, universal design is a trend that may be more than just a trend. 

Siding Replacement (Vinyl)

Upfront Job Cost: $15,538

Resale Value: $8,257

Upfront Cost Recouped: 53.1% 

New siding can give your entire home a facelift and vinyl siding requires very little maintenance to look great for years. 

Major Kitchen Remodel (Midrange)

Upfront Job Cost: $66,159

Resale Value: $34,889   

Upfront Cost Recouped: 52.7% 

Because of the ROI on kitchen projects, homebuyers usually consider kitchen remodels one of their first home projects.

Bath Remodel (Midrange)

Upfront Job Cost: $23,071

Resale Value: $12,126   

Upfront Cost Recouped: 52.6%    

Bathroom remodels, along with kitchen remodels, have some of the best ROI of any home project.   

Deck Addition (Wood)

Upfront Job Cost: $15,622   

Resale Value: $6,567   

Upfront Cost Recouped: 49.0% 

Who doesn’t love a summer evening on their own deck? The ROI for a wood deck is a bit higher than it is for a composite deck, but a wood deck is going to require more regular maintenance, so factor in your time and energy when deciding between decking materials.

Window Replacement (Wood)

Upfront Job Cost: $22,280 

Resale Value: $8,304

Upfront Cost Recouped: 53.2%   

Wood framed windows look great, but will cost more upfront than vinyl and will require more maintenance.

Roofing Replacement (Asphalt Shingles)

Upfront Job Cost: $26,631 

Resale Value: $13,713   

Upfront Cost Recouped: 51.5% 

Because replacing a roof can be such a major project, homebuyers will usually ask when the roof was last replaced very early in the buying process.

Deck Addition (Composite)

Upfront Job Cost: $18,929 

Resale Value: $8,381 

Upfront Cost Recouped: 44.3%   

While the ROI is slightly lower on a composite deck than a natural wood deck, a composite deck requires very little maintenance. How much effort you want to spend on maintaining your deck should factor into this decision. 

We hope this information allows you to make the best decision when you’re ready to tackle your next home project, but there are plenty of factors that can affect your actual ROI. When you’re ready to start the process, make sure you consult experienced, local professionals who can provide you with information that is specific to your home and the market where you live.