When purchasing a home—especially for first-time buyers—it’s easy to focus on finding a move-in ready property that checks every box. However, the best investment opportunities might actually lie in homes that need a little TLC. Strategic home improvement projects can add significant value, helping buyers build instant equity from the moment they move in.
The 2024 Cost vs. Value Report from JLC Online highlights the most impactful renovation projects when it comes to return on investment (ROI). Here are the top four home upgrades that provide the highest ROI—and the number one might surprise you.
1. Garage Door Replacement – 194% ROI
Replacing an outdated garage door with a new one tops the list with an impressive 194% return on investment. This simple yet impactful project enhances curb appeal dramatically, making the entire home look newer and more valuable. It’s affordable, quick to complete, and makes a powerful first impression, which is essential when it comes time to sell—or simply to enjoy increased property value.
2. Steel Entry Door Replacement – 188% ROI
A front door isn’t just about aesthetics—it’s also about security and energy efficiency. Swapping out an older front door for a steel entry door provides a 188% return on investment. This upgrade offers a sleek, modern look while increasing safety and improving insulation, all of which are highly attractive to prospective buyers.
3. Manufactured Stone Veneer – 153% ROI
For homeowners seeking to transform the exterior of their property, adding a manufactured stone veneer is a standout project. This upgrade brings a 153% ROI, offering a custom, high-end appearance that significantly boosts curb appeal. Whether it’s updating dated siding or creating a more refined façade, stone veneer is a visual game changer.
4. Minor Kitchen Remodel – 96% ROI
The kitchen remains a focal point for buyers, and even a minor remodel can yield substantial returns. Simple updates—such as painting cabinets, updating hardware, and installing new countertops—can make a home feel fresh and move-in ready. These small changes deliver a solid 96% return on investment, making it the highest-ranking interior project on the list.
Changing Trends in ROI for Energy Efficiency Projects
Interestingly, not all renovation projects are yielding the same returns in 2024. One notable shift is the decline in ROI for HVAC conversions. Last year, replacing a gas furnace with an electric heat pump provided over 100% ROI. This year, that figure has dropped to 66%, likely due to shifts in energy costs. However, with tax rebates for energy-efficient upgrades becoming more common, this trend may reverse in the near future.
Bottom Line
Homebuyers should keep an open mind when touring properties. Homes that lack curb appeal or have dated interiors may offer the best opportunities to build equity quickly through a few smart upgrades. Focusing on projects that improve first impressions—like garage doors, entry doors, and exterior finishes—can lead to significant returns. With the right improvements, even a home that seems “less than perfect” can become a valuable investment.