Although I currently rent my home, I am familiar with many of the ins and outs of home improvement. Even if you start the project with the best of intentions, not all home renovations pay off equally. In fact, a lot of it depends on where you live. These nine U.S. cities have consistently delivered the worst ROI on home improvements, providing homeowners with very little return.
1. Billings, MT
Billings, Montana, ranks at the bottom for remodeling ROI with just 10.98% return on investment for fixer-upper renovations. Even if you pour money into major projects, local market dynamics won’t reward you. That makes it one of the worst places to recoup renovation costs. Consider sticking to minor improvements or holding off until the market shifts. In Billings, taking small, high-impact steps is far smarter than big-ticket upgrades with little payoff.
2. Lexington, KY
With a low ROI of about 11.22%, Lexington is another place that makes the list of worst ROI home improvements. Large-scale remodels like bathroom or kitchen overhauls often cost more than the increased home value. Homeowners may enjoy upgrades but won’t likely break even at resale. Instead, focus on curb appeal or energy-efficient fixes that still add some value. That way, you’re not caught in the trap of over-investing where the market won’t reward you.
3. Newark, NJ
Newark homeowners face an ROI of just 11.42% on major renovations. So adding a pool or full bathroom remodel could leave you out of pocket. That doesn’t mean don’t enjoy your upgrades—just be strategic. Opt for cosmetic updates like paint, lighting, or updated hardware. Those kinds of projects tend to outperform bigger renovations in ROI.
4. Indianapolis, IN
Indianapolis clocks in at 11.74% return for major remodels, which places it firmly among the worst ROI home improvements cities. Whether adding a walk-in closet or ripping out walls, the resale payoff is weak. Instead, consider DIY upgrades or scoped, targeted repairs. They’ll likely recover more of your cost—without the pressure of a major investment eventually going underwater.
5. Kansas City, MO
Kansas City reports around 11.77% ROI on large-scale fixer-uppers. Swapping out entire kitchens or adding extensions might feel rewarding, but the real estate market won’t mirror your enthusiasm. Stick with mid-tier improvements—like bathroom refacing or kitchen cabinet facelifts. Homebuyers often prefer clean and functional spaces over extravagant upgrades.
6. Boston, MA
Despite Boston’s respectable home prices, your renovation ROI might only climb to about 11.8%. That means big projects like full-scale bathroom remodels or gourmet kitchens won’t recoup costs at resale. Homeowners are better off investing in neutral, budget-friendly enhancements. Simple refreshes like new siding or flooring usually offer steadier, more reliable returns.
7. Chicago, IL
Chicago homeowners face just 11.81% ROI for major fixer-uppers. So pool installations or major room additions won’t deliver substantial financial returns. It’s more beneficial to invest in cosmetic upgrades or energy-efficient systems. These smaller-scale improvements often recover more of your investment while still upgrading living comfort.
8. Lincoln, NE
In Lincoln, homeowners often see only an 11.82% ROI after extensive renovations. That makes it another spot with worst ROI home improvements. Rather than gutting the kitchen or adding custom bathrooms, consider repainting, landscaping upgrades, or fixture updates. These cost-effective moves can get closer to breaking even at resale time.
9. Bismarck, ND
Bismarck’s remodeling ROI sits at 11.84%, making it yet another entry on the worst ROI home improvements radar. Builders and homeowners should steer clear of oversized additions or high-end finishes. Instead, opt for universal improvements like insulation, fresh paint, or updated lighting. These efficient updates offer better return potential and less risk.
Smart Moves With Worst ROI Home Improvements
Nationally, homeowners recoup around 69% of renovation costs on average, but that number drops drastically in the cities above. Projects like additional bathrooms, sunrooms, pools, and expansive kitchen remodels are often the biggest drains. Even in better markets, costly projects typically return less than half their investment when done on a grand scale. For homeowners in these nine cities, the key is simple: avoid overspending on major upgrades and focus on small improvements that offer solid value.
What’s the smartest home upgrade you’ve ever made—or the biggest flop? Share your story in the comments below!
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