Do you want to increase the value of your home? Grab your remodeling tool kit and head out.
For three decades, exterior replacement projects have provided a larger return on investment (ROI) than interior discretionary remodels – and that trend continues, according to Zonda Media’s 38th Annual Cost vs. Value Report.
However, if you insist on remodeling your interior, at least have the good sense to avoid the following projects if increasing the value of the home is your primary objective.
Zonda says it offers the following remodels Worst return on investment Of all home remodeling projects.
Bathroom Extension (Upscale)
- National average cost for this renovation: $111,255
- Average cost charged for this renovation: 36%
How did Zonda reach its conclusions? The publisher analyzed data from both surveyed real estate professionals and the remodeling assessment site XactRemodel to answer the question: “What value does a particular remodeling project add to a home’s sales price?”
Major Kitchen Remodel (Upscale)
- National average cost for this renovation: $164,104
- Average cost charged for this renovation: 36%
If you hope to get good bang for your buck on an interior renovation, your best option is either a small kitchen remodel or a midrange bath remodel. The first offers 113% ROI, and the second can get you 80% returns.
“Remodeling a small kitchen remains the only interior project in the top five, demonstrating the enduring importance of a livable kitchen,” says Zonda.
Primary Suite Addition (Midrange)
- National average cost for this renovation: $170,517
- Average cost charged for this renovation:32%
Zonda says the fact that external projects provide better ROI is a continuing trend. Todd Tomalak – Zonda’s Head of Building Construction Product Advisory – in a note Summary Among the findings:
“Housing demand changed in 2025 (similar to previous periods of adjustment such as 2012), and the ROI of remodels changed accordingly. We see that exterior improvements bring the most value to owners selling their homes, while interior projects make the most sense for residents planning to stay in their homes for a long time.”
solar power installation
- National average cost for this renovation: $55,937
- Average cost charged for this renovation:30%
Solar energy is one of the newly added projects with differentiated payments. This category also includes basement remodels and accessory dwelling units (ADUs). Basement remodels have the highest ROI at 71%, while ADUs bring 41% ROI.
Primary Suite Addition (Upscale)
- National average cost for this renovation: $351,613
- Average cost charged for this renovation: 18%
An expensive primary suite may include a spacious sleeping area, a lounge area, a large adjacent bathroom and a large walk-in closet with dressing area. These suites can be equipped with custom lighting and sound controls and be sound-proofed zonda.
