When it comes to your return on investment, not all home renovation projects are created equal. Home-sellers with an eye on maximizing profits are wise to carefully research which improvements will equal the largest profit margins—and which projects will barely help the seller break even.
To find the home renovation projects with the lowest return on investment, Upnest analyzed data from Zonda Media’s 2021 Remodeling Cost vs. Value Report. The Cost vs. Value (CVV) Report relies on an econometric model that uses construction cost estimates along with economic indicators, such as local market housing, income, and employment, in 150 U.S. markets to create the best estimate of the cost of a project and its resale value.
The projects selected for CVV are ones that are historically common projects done by the roughly 200,000 remodeling professionals and are projects that can be priced accurately. As a result, more elaborate and discretionary projects that include more selections (choices for specific finishes, materials, fixtures, and appliances) that may or may not appeal to a wide range of homebuyers are not included in the CVV analysis. Other common projects that vary significantly in cost depending on region and climate—like finishing basements and attics or enclosing a porch—are not included due to an inability to provide accurate cost estimates.
Twenty-two total renovation projects were selected, and the six with the lowest percentage of construction cost recouped are ranked below. Keep reading to find out which home renovations have the lowest return on investment when it comes time to sell.