SUMMARY: Smart renovations can increase comfort and add long-term value. From fresh exteriors to kitchen and bath updates, the right projects make every dollar count.

Renovation continues to be a major move for today’s homeowners — and not just for cosmetic upgrades. In recent years, people have stayed put rather than sell, boosting demand for strategic, value-focused improvements.

Within the last two years, the home renovation industry surpassed the $400 billion threshold, according to reports from the Joint Center for Housing Studies of Harvard University (JCHS) Leading Indicator of Remodeling Activity (LIRA).

But that number comes with a warning: While spending remains high, planned expenditures are expected to cool somewhat, driven by inflation, rising rates, and shifting priorities.

Create curb appeal
According to cost vs. value report from ZondaHome.com, exterior projects are dominating ROI rankings. That’s no surprise: They shape first impressions. In 2024’s data:

• Garage door replacements average a 194% recouped cost.
• Steel front/entry doors can recoup 188%.
• Manufactured stone veneer is up there, too, often yielding returns well over 150%.

Cooking up value

Interior work is more nuanced. Beauty and functionality matter, but you have to be moderate:

• A minor kitchen remodel (midrange tweaks like cabinetry refresh, new countertops, flooring) still holds strong.
• Bathroom upgrades remain staples: Midrange remodels generally recoup 60-75%, depending on scale. (Keep in mind, luxury overhauls can suffer diminishing returns.)

Hit the deck
Outdoor life can play a valuable role in home value. Decks, patios, landscaping, and hardscaping all contribute. Composite or wood deck additions often recoup 60-80%, depending on local climate and material costs.

Consider the costs

• Don’t overshoot your neighborhood. Even an excellent upgrade can hurt resale if it’s not in sync with comparable homes.
• Be realistic with interiors. High-end finishes might appeal to you personally, but future buyers might not pay extra for them.
• Plan for extras. Plumbing, electrical, structural surprises can be costly so be sure to budget 10-20% extra.
• Document everything. Contractors, permits, receipts, before/after photos — these all help with appraisals and future resale.
• Choose projects with both value and joy. A study by April 2025 study by the National Association of Realtors shows that many homeowners report real happiness from remodeling in addition to resale value.

How the Credit Union can help

We understand that funding renovations can be challenging. Through our mortgage and home equity products, we offer flexible options so you don’t have to choose between improving your home and maintaining financial peace of mind. Let us help you invest in your home smartly and confidently.