Renovations That Increase Home Value (ROI)
The Best Renovations That Increase Home Value in Canada (By ROI)
Renovating your home should be about enhancing both your lifestyle and your wealth. While very few projects deliver a guaranteed 100% return, focusing on resale value is key. Based on 2025 Canadian market data, we break down the best home renovations with best resale value —and which ones you should only do for personal enjoyment.
Phase 1: High-ROI, Buyer-Focused Projects (75% – 150% ROI)
The Front Door, Paint, and Curb Appeal
First impressions are everything. Simple, high-impact changes offer the quickest returns.
- The Front Door: Replacing your front door with a new steel or fibreglass model consistently yields one of the highest returns. (Source 2.4)
- Painting: A fresh coat of light, neutral paint (like “greige”) is the cheapest way to transform a space and can recoup 60%–80% of its cost. (Source 1.1)
- Curb Appeal: Basic landscaping, a new garage door, or updated exterior lighting offers huge perceived value.
The Minor Kitchen Refresh
Buyers want clean and functional, not custom luxury. A minor kitchen update focusing on surfaces is the top ROI winner.
- Focus: Cabinet refacing, new countertops (quartz/granite), modern hardware, and energy-efficient appliances.
- ROI: A minor kitchen remodel can recoup up to 75%–100% of its cost. Avoid complete overhauls. (Source 1.3, 2.4)
Mid-Range Bathroom Upgrades
Modern, clean bathrooms sell homes.
- Focus: Replacing outdated fixtures, lighting, vanities, and re-tiling the shower area. Water-saving fixtures are a major selling point.
- ROI: Mid-range bathroom remodels typically return 60%–75%.
Phase 2: The Strategic & Secondary Projects
Energy-Efficient Upgrades
These energy efficient home upgrades provide a double return: reduced utility bills now and strong buyer confidence later.
- Top Projects: Insulation (attic and walls), ENERGY STAR® windows, and heat pumps.
- The Financial Advantage: These renovations qualify for programs like the Canada Greener Homes Loan, making the initial cost much lower and boosting the ultimate ROI.
Finishing the Basement
Finishing a basement is an effective way to significantly increase the home’s usable square footage.
- The Caveat: The ROI is highest when you add functional, legal living space (e.g., a bedroom with a proper egress window) or a secondary suite for rental income.
- Typical ROI: Around 70%–75%.
The best way to increase your home’s value is to renovate for the next buyer, not yourself. Focus on neutral, high-impact updates, improve energy efficiency, and check what has sold recently in your neighbourhood. Need help understanding how your renovation plans impact your home’s final valuation? Contact us for an expert analysis.
Renovation ROI FAQs
Need help finding contractors for your audit or renovations? Contact us here.
Do I get my money back on a new roof?
Yes, largely. A full roof replacement is considered essential maintenance and can recoup 70%–85% of its cost. More importantly, an old roof will actively reduce your selling price if not replaced.
What renovation should I avoid before selling?
Avoid highly personalized renovations and major luxury overhauls that exceed the standard of the neighbourhood. In-ground swimming pools and elaborate custom landscaping are often cited as the lowest ROI projects due to the high maintenance costs that deter many buyers.
How do I find the average renovation cost in my area?
The best way is to speak with local contractors and consult national reports (like those from the [Link: Appraisal Institute of Canada]) which publish regional cost-vs-value data.
