Which Home Remodeling Projects Yield the Best ROI?

Home remodeled by Ryann Reed Design Build

Home renovations improve your quality of life now, and increase your property’s value when it comes time to sell. While most home remodeling projects and additions significantly impact your house’s functional space and beauty in the short term, they provide a generous return on investment (ROI) in the long term. 

It’s smart to gain knowledge on the impact your upgrades will have on your property’s value in the future. Here are some of the top home remodeling options when it comes to the return you’ll see on your investment. 

Understanding the Return You Can Expect on Your Home Renovations 

There are several factors that impact the ROI you can expect from your addition or renovation project. The current real estate market, your location, the type of project you choose, and the project’s timing all play into the return you’ll receive. 

Many home improvements yield roughly 70% return on investment. But the fact that you get to enjoy the addition or renovation during the years you live in your current house is also a plus. 

Adding functional space and square footage to your home yields the most substantial ROI. Here are some top performers when it comes to ROI.

Finished Basement

You can expect a healthy ROI from a finished basement renovation project. It can be a major selling point for a home, making it a wise choice. 

There are so many different ways you can utilize a finished basement: 

  • Mother-in-law suite—Create a place for your aging parents to live with dignity in proximity to you, yet in their own private place.
  • Gym—Design the ideal place to stay in shape in the comfort and convenience of your own home. 
  • Office—Work remotely from your own basement and enjoy the quick commute!
  • Playroom—Give your toddlers, elementary-age, or teens their own space to enjoy with their friends. 

Think about it: If you have an unfinished basement, it’s likely not insulated. Finishing your basement means you’ll regulate its temperature (and humidity), creating a comfortable space that will even increase your energy savings each month. 

Home Additions

Master suite additions

Highly coveted master bedroom additions yield one of the best ROIs for renovations. You’ll add not only square footage, but also comfort and privacy. A master suite addition boosts the overall value of your property significantly with a gorgeous bathroom, well-appointed amenities, and a generous walk-in closet. 

Second-floor addition

Maximize your home’s potential with a second-story addition. You’ll not only cause your square footage to soar, but you’ll also greatly increase the value of your property, delivering a hefty ROI when it comes time to sell. 

Family room addition

Bigger houses command higher prices when they sell, so a family room addition can give you an excellent ROI. 

Think about it: If you love your location but your current property doesn’t suit your needs, an addition creates a smart solution (rather than tackling the hassle of moving). 


There are two rooms that sell a home: the kitchen and the bathrooms. As one of the most utilized spaces on your property, remodeling a bathroom upgrades your quality of life and provides a great ROI. You can typically expect 70% – 100% ROI on a bathroom renovation. 

Updating your bathroom with minor renovations can pay off richly when it comes time to sell, so don’t hesitate when you find yourself wanting that rain shower showerhead, a soaking tub, a new vanity, updated lighting, and a touchless smart toilet. An upgraded master bathroom is a highly desirable feature and can convince homebuyers they are making a smart decision. 

Think about it: The benefits of adding even just a soaking tub are many. If you get into the habit of taking a relaxing bath to unwind, your stress level will decrease. Since stress is a major cause of health problems, lowering your stress level actually yields a significant return—in your health (not to mention your home value). 


A kitchen remodel can boost the resale value of your home and provide a generous ROI. Update your kitchen’s awkward layout and create a space that works for your family. 

Think about it: Upgrading your kitchen to fit your needs and style preferences can boost your home value significantly. 

Attic Bedroom Conversion

One of the best ways to increase your home’s value is to increase the number of available rooms. If you have a convertible attic space, consider turning it into an extra bedroom. It makes the perfect place for growing kids to enjoy and gives future homebuyers one more reason to choose your home. You’ll see a hefty ROI as you’re adding square footage to your home. 

Think about it: The flexibility you get from an extra bedroom space can come in handy over the years, making an attic bedroom conversion a smart choice. 

Renovations that don’t typically have a high ROI

While there are renovations you can go into with confidence about their impact on the value of your home, there are also some that aren’t as reliable when it comes to the return you will see. Those include installing a pool (not everyone wants one and they require a lot of maintenance), backyard landscaping (it doesn’t help curb appeal), and luxury entertainment upgrades (it’s heavily based on personal preference). 

Get the Renovation or Addition You’ve Been Dreaming Of

You deserve to live in a beautiful home with the function you need to enjoy everyday life. If your home isn’t meeting your needs, a home addition or renovation can solve that problem! 

At Ryann Reed Design Build, we provide an all-in-one service for your project from concept to completion. Our efficient design and construction teams work together from the start, saving you time and hassle on your renovation. Discover how our home remodeling services can help bring your vision to life.