Not every home renovation project offers the same financial outcome in return. If you’re planning to remodel your home, you probably want to know which renovations will give your home the real estate value improvements. Our team has analyzed real home renovation data from Austin to list the six home remodeling projects that yield the best ROI. Some of these might even surprise you!
The data will support your future decision-making when you start planning profitable home upgrades. So, stick around as we examine proven investments that maximize your property’s worth and everyday usefulness. Let’s start with the sixth-highest return on investment—and we promise, it’s not what you might expect!
1. Install Water Filtration System To Drive The Best Home Remodling ROI
Your home gains two important advantages when you install a water filtration system: financial value and lifestyle comfort. If you spent the national average of $3,000, you can expect to get back $2,700.03 if you were to turn around and sell your house. But the benefits aren’t just financial. With a home filtration system, you enjoy unlimited filtered water without having to fill Brita pitchers or buy bottled water daily. Better flavor in the filtered water makes hydration feel natural.
Thus, you improve your home value and select an eco-friendly lifestyle with this smart investment. A minimal adjustment creates substantial benefits that build up throughout your life.
2. High-End Patio Renovation for the Best Return on Investment
If you do this value-adding renovation, your investment will yield a 90.81% profit. A typical $10,000 patio technical profitable home upgrade allows you to earn back $9,081 on your property valuation. You can create new outdoor space through patio construction at a low cost compared to building house extensions. You can use these spaces for many activities, including hosting parties, while also working out and enjoying social time with drinks. You can get both an outdoor space to relax and an excuse to enjoy nature.
Plus, with the relatively low cost compared to other home improvements, it’s a smart way to add both functionality and style to your property. It’s the perfect spot to make memories and enjoy some quality time outdoors.
3. High-Quality Decks Installation To Achieve The Best ROI
A high-end deck will give you an ROI of 91.25%. So, if you spend $20,000 on a premium deck, you’re going to get back $18,250. Decks share a lot of the same benefits as patios in terms of economically increasing your living space, but they also add a really nice visual aesthetic to the exterior of your home.
You can even build them high off the ground to give you a better view or take advantage of a second-floor living space that you want to expand by having outdoor access.
4. Driveway Renovation Is The Smart Investment For High ROI
Your driveway is the entrance that each visitor encounters right after entering your property. So, you can get back 92.64% of your investment when you renovate a new driveway. In case you have a cracked driveway, your visitors will develop an unfavorable opinion about your home.
So, your new driveway protects both first impressions and safety by replacing worn-out sections that create tripping risks. On the other hand, when street parking is scarce in your area, having more parking space on your property becomes highly beneficial. You can resolve drainage problems by updating your driveway when your property sits uphill or your garage is below ground level. Thus, a smooth new driveway enables your family to play basketball or exercise outdoors in your front yard.
5. An Outdoor Kitchen Installation for Maximum ROI
Our team was initially skeptical about the second most profitable home upgrade, but recently we did this cost-effective home enhancement for one of our an outdoor kitchen remodeling produces a return of 93.75% when you factor in its investment cost. A typical $13,000 outdoor kitchen purchase will pay off by $12,100.87. The best thing is that cooking in your outdoor kitchen allows you to combine food preparation with the enjoyable benefits of fresh exterior spaces.
A cook who enjoys hosting guests will find that cooking outdoors creates opportunities for face-to-face conversations with their guests. Your outdoor living space expands to the next level by adding an outdoor kitchen along your patio or deck. However, you need warm weather throughout most months to get a good return on your investment.
6. Achieve the Highest ROI with a New Front Door
And that brings us to the renovation with the highest return on investment: a new front door. You’ll receive 98% of your money back when you upgrade to a high-quality front door, which makes it a top choice for home renovation. A new front door provides better security by using stronger locks.
Plus, it makes your home more energy-efficient through improved insulation and draft prevention. Your money will return significant benefits by protecting your home and lowering energy costs for a long time.
People judge your home by how your front door looks when they drive past. Your entrance door serves as your home’s first visual impact, and a high-quality door design enhances your property’s market value and visual appeal.
Key Takeaways: Exterior Home Remodeling Always Dominate ROI
So, I don’t know if you noticed, but the top five home renovation projects with the highest return on investment are all exterior projects. This tells me two things:
- The way your home looks from the outside determines its real estate value.
- It just costs less money to improve non-structural exterior components of your home relative to interior renovations.
Why Work with Together Design Build?
If you’re thinking about doing any home renovations, working with Together Design Build is a new level of experience. Our team is incredibly efficient and brings unmatched expertise to every project. Whether it’s improving your home’s exterior or remodeling an interior space, they handle every detail with professionalism.
Our team will ensure your renovation is done right, on time, and within budget. From design to completion, Together Design Build has you covered.
