A new year brings a fresh start, which might include the desire for home improvements. But how do you know where to focus your efforts to get the most bang for the buck?
“Your home is not only a sanctuary and safe place, but it is first and foremost a potential investment in your future,” says Phyllis Harbinger, FASID, NCIDQ, CID, a professional interior designer, strategy coach, author, and owner of Design Concepts/Interiors, LLC (DCI Studio) in Greenwich, Connecticut. “When deciding on a home improvement, I suggest researching which enhancements will actually give you the highest return on investment (ROI).”
We spoke to Harbinger and several other experts, including interior designers, home contractors, and real estate agents, to find out which high-ROI renovations they anticipate for 2025 to help boost your home’s value and comfort.
1. Kitchen Remodel
The kitchen is the heart of the home where friends and family love to gather. So a kitchen facelift is a must-have, says Suzy Minken, licensed real estate salesperson at Compass in Short Hills, New Jersey. More people are prioritizing modern, functional kitchens. “Depending on your budget and timing, there are relatively inexpensive improvements that can transform a dated kitchen to one that is fresh and modern,” says Minken.
Kitchen upgrades to focus on include adding stainless steel appliances; painting or replacing dark cabinets with white ones; swapping out older light fixtures with more modern options; and installing new countertops with a light, bright material like white quartz. Harbinger also suggests adding a kitchen island, if possible, since it is “a welcome addition to the hub of the home to gather, serve, eat, and do homework while adding incredible value,” says Harbinger.
2. Bathroom Renovation
Renovating bathrooms throughout the house is another smart investment to boost a home’s value and leave a lasting impression. Homeowners and home buyers are increasingly prioritizing features that combine functionality and lifestyle, with many willing to invest more to meet these needs, says Steve Gold, luxury real estate agent at Corcoran in New York City.
“One highly sought-after feature is a spa-like retreat in the bathroom, reflecting the growing wellness trend,” says Gold. “High-end fixtures like rainfall showers and luxury faucets…are popular choices for creating serene, indulgent environments. Not only do these upgrades elevate daily living, but they also offer significant returns on investment,” he says.
If budget is an issue, Minken recommends focusing on replacing the bathroom vanity and sink, shower doors, floor tile, mirrors, and lighting to update bathrooms effectively for less investment.
3. Outdoor Living Space Enhancements
Experts also agree that outdoor upgrades add value to a home. “Patios, decks, and outdoor kitchens allow for increased surface area and attract buyers looking for places to entertain and de-stress,” says Bubba Peek, a real estate investor and owner of Bubba Land Company based in Jacksonville, Florida. “These areas almost always pay off, making them a favorite in regard to ROI.”
Adding square footage to a porch or patio can improve your home’s value, says Harbinger. “Retractable screens, sliding and folding walls, an outdoor fireplace, or a wood-burning stove add months of enjoyment and lift our moods, enhancing our well-being,” she says. She is grateful for the new products on the market, such as resilient textiles, furnishings, and floor coverings that provide durable options for outdoor spaces.
4. Smart-Home Features
Technological innovation in homes is another big one, says Peek. “Clients purchasing homes tend to prefer systems that include smart technology, such as surveillance cameras, air conditioning controls, and coordinated lighting systems.” According to Peek, “these upgrades bring added ease of use.” They also boost the house’s worth, which makes them valuable additions.
Harbinger agrees that technology presents an opportunity for renovations with high ROI. “From lighting and music systems to security and temperature control, smart-home technology can be life-changing,” she says. “We install lighting systems that follow daylight and program shades to lower and raise at appropriate times throughout the day. And motion sensors can illuminate a space as you walk through and turn off the lights as you leave,” says Harbinger.
5. Energy Efficiency Upgrades
Finally, upgrading a home with more energy-efficient products like solar panels, insulation, efficient HVAC equipment, multipanel windows, and window film is another beneficial way to invest in a home’s future. “Buyers are now looking for energy-efficiency features as a way to save money on bills, combined with investing into eco-friendly appliances,” says Peek. These choices can decrease energy expenses dramatically, while raising home appraisal values.
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