The passion for home improvements born during the pandemic, as homebound HGTV fans were inspired to spruce up their surroundings, has only gained steam. In 2022, homeowners spent $472 billion on home improvements and projects reached $485 billion in 2023, according to a study from the Joint Center for Housing Studies at Harvard University.
Generous federal tax credits can help defray the cost of energy efficient improvements that could lower your energy costs and add to the value of your home. But before you head for Home Depot or Lowe’s — or contact a contractor —consider which projects will deliver the largest return on your investment.
A good place to start is the JLC's 2024 Cost vs. Value Report. The report details the average cost of about two dozen home remodeling projects and the estimated value each project retains if the property is sold. Some of the least expensive projects deliver the biggest payoffs.
Replacement garage door. Not glamorous, but the project is a home run as far as home improvements go. The average homeowner can recoup almost 194% of the cost, making this the best project to increase the resale value of your home.
New deck. If you need a more welcoming outdoor space, add a deck to your house that can be used as an outdoor home office by day and an entertainment venue at night. A 16-by-20-foot wood deck costs, on average, $17,051, and you’ll probably need furniture, too.
Revamped windows and door. They don’t give you extra space to work or entertain, but new windows and a new front door will keep drafts (and bugs) out. Plus, tightening up doors and windows will help lower your utility bills. Window cost depend on the material and style selected, and size. This Old House projects a window replacement will cost between $1,105 to $1,730 per window.
Updated kitchen. A kitchen remodel that includes a new countertop, sink and faucet, energy-efficient appliances, and fresh paint costs about $27,492 on average, but will add to your home’s resale appeal. Plus, some utility companies offer rebates for buying energy-efficient appliances and equipment or making other improvements.
After your upgrades have been completed, review your homeowners insurance policy to determine whether you need to make any updates. In the event of a disaster, you want to be sure that your improvements are covered. If you are underinsured you risk not receiving the maximum payout if your home is seriously damaged by a fire or natural disaster.
Bang for the buck
Remodeling magazine compared the average cost of home improvement projects with the estimated value they would retain in 101 U.S. housing markets.
