2026-01-30
Renovation ROI: Which Projects Add the Most Value? (2026)
Understanding Renovation ROI
Not all renovations are created equal when it comes to resale value. Some projects return 100%+ of their cost, while others recover less than 50%. Understanding renovation ROI helps you prioritize spending, whether you're renovating to sell or to enjoy your home for years to come.
ROI is calculated as: (Added Home Value ÷ Renovation Cost) × 100. A $30,000 kitchen renovation that adds $25,000 to your home's value has an 83% ROI.
ROI Rankings by Project
| Project | Typical Cost | Value Added | ROI |
|---|---|---|---|
| Minor kitchen remodel | $15,000 - $30,000 | $13,000 - $28,000 | 80-95% |
| Bathroom renovation | $10,000 - $25,000 | $8,000 - $20,000 | 70-85% |
| Deck addition | $8,000 - $20,000 | $6,000 - $16,000 | 70-80% |
| Basement finishing | $25,000 - $55,000 | $18,000 - $42,000 | 65-75% |
| Curb appeal (paint, landscaping) | $3,000 - $10,000 | $3,000 - $12,000 | 80-120% |
| Major kitchen remodel | $55,000 - $100,000 | $35,000 - $65,000 | 55-70% |
| Primary suite addition | $50,000 - $100,000 | $30,000 - $55,000 | 50-60% |
| Swimming pool | $40,000 - $80,000 | $10,000 - $25,000 | 25-40% |
Kitchen Renovation ROI
The kitchen consistently delivers the highest ROI of any renovation project. A minor kitchen remodel (cabinet refacing, new countertops, updated appliances, fresh paint) returns 80-95% of its cost.
The key insight: minor kitchen remodels outperform major ones in ROI percentage. Spending $25,000 on strategic updates returns more per dollar than a $75,000 gut renovation.
Calculate your kitchen renovation cost with our kitchen calculator, and compare prices in your city on our costs by city page.
Bathroom Renovation ROI
Bathroom renovations return 70-85% of their cost. The sweet spot is a mid-range renovation with modern tile, updated vanity, new fixtures, and good lighting. Walk-in showers are highly desirable for resale.
Tip: Renovate the primary bathroom first for maximum impact. A dated main bath is a major buyer turnoff. Use our bathroom calculator for estimates.
Basement Finishing ROI
A finished basement returns 65-75% of investment at resale. However, if you add a legal rental suite, the ROI calculation changes dramatically — rental income of $800-$1,500/month can pay off the renovation in 2-4 years.
Get a basement estimate with our basement calculator.
Deck ROI
Decks return 70-80% of their cost. Wood decks have a slightly higher ROI percentage because of lower upfront cost, but composite decks add more absolute value due to perceived quality and low maintenance appeal.
Estimate your deck project with our deck calculator.
Low-ROI Projects to Avoid Before Selling
- Swimming pool (25-40% ROI): Many buyers see pools as a liability (maintenance, safety, insurance).
- Over-customized spaces: Home theatres, wine cellars, and hobby rooms appeal to a narrow buyer pool.
- Luxury upgrades in modest neighbourhoods: A $100K kitchen in a $400K neighbourhood won't recoup costs.
- Converting bedrooms: Reducing bedroom count (e.g., making a bedroom into an office) reduces resale value.
- Sunrooms: Return only 45-55% in most Canadian markets.
Tips for Maximizing Your Renovation ROI
- Match the neighbourhood: Don't over-improve beyond what comparable homes offer.
- Focus on kitchens and bathrooms: These rooms sell houses. Prioritize them.
- Curb appeal first: Fresh paint, landscaping, and a new front door deliver outsized returns for minimal cost.
- Keep it neutral: White/gray kitchens, neutral bathrooms, and classic finishes appeal to the widest buyer pool.
- Get 3+ quotes: Overpaying for renovations directly reduces your ROI. Compare contractors carefully.
- Don't skip permits: Unpermitted work can reduce home value and scare off buyers. See our permits guide.
Frequently Asked Questions
What home renovation has the highest ROI?
A minor kitchen remodel consistently delivers the highest ROI at 80-95%. Curb appeal improvements (paint, landscaping) can exceed 100% ROI due to their low cost and high visual impact.
Is it worth renovating before selling?
Yes, for strategic updates. Focus on kitchen, bathrooms, paint, and curb appeal. Avoid major structural projects or high-end customizations that won't recoup costs.
Does a finished basement add value?
Yes. A finished basement adds 65-75% of renovation cost to home value. It also adds livable square footage, which is factored into home appraisals. A legal rental suite can provide ongoing income that exceeds the renovation cost.