Home Improvement ROI
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Home Improvement ROI

Where to get the biggest bang for your home improvement buck

While there are lots of reasons people are motivated to take on a home improvement—maybe they’re getting ready to sell, creating new spaces, upgrading surfaces and finishes, or making a backyard space more livable—there’s one thing they all have their eye on: the ROI of their project. And with good reason.

As it turns out, the return on investment (ROI) for home improvement projects can vary dramatically. Assuming your project isn’t a must-do (think: room for a new baby), it may be worth your time to consider how and where you want to put money back into your home.

Here’s a look at the ROI for a number of interior and exterior projects based on data from the National Association of Realtors' Remodeling Impact Report:

Interior Remodel Project                        ROI

Refinishing hardwood floors                      147%

New wood flooring                                      118%

Insulation upgrade                                      100%

Basement conversion to living area           86%

Closet renovation                                         83%

Attic conversion to living area                     75%

Complete kitchen renovation                      75%

Bathroom renovation                                   71%

Kitchen upgrade                                            67%

Add new bathroom                                       63%

Add new primary bedroom suite                 56%


Exterior Remodeling Project                  ROI

New roofing                                                   100%

Garage door                                                  100%

Fiber cement siding                                       86%

Vinyl siding                                                      82%

Vinyl windows                                                 67%

Wood windows                                               63%

Steel front door                                              63%


Since not all projects offer the same ROI, it makes sense to evaluate them based on your goals and budget and prioritize them based on the value they’ll add to your property.

As for how to fund a remodel, you’ve got options, including: Cash/Savings; Personal loan; Home equity line of credit (HELOC); Home equity loan; Mortgage refinance; and Credit cards.

As for which approach is best for you, the answer is ‘it depends.’

If you can swing paying cash out of savings and not deplete emergency funds, you should choose this route as you won’t incur debt or interest charges—and you’re more likely to stick to a budget.

If you’re going to borrow money, you need to be clear on how much of a monthly payment you can afford. You also need to be aware that some options—HELOC and home equity loans—may include closing costs and also take longer to get approval on than a personal loan. As for credit cards, while they give you quick access to cash for materials and supplies, they also tend to have higher interest rates than other lending options.

If you aren’t sure which funding option is right for you, contact our branch banking team or visit any branch to help you weigh the factors.


DISCLAIMER: This article is meant for educational purposes only and is not intended to be construed as financial, tax, investment or legal advice.