Home Improvements: What Pays You Back?

Home Improvements: What Actually Pays You Back? The 2025 Cost vs. Value Report Reveals Some Surprising Results

National rankings, California comparisons, San Diego market data, homeowner satisfaction, and the improvements that can protect your property's value.

When it comes to improving your home, there is a question worth asking before spending thousands, or even hundreds of thousands, of dollars:

Will this improvement actually increase my home's value, protect my investment, or simply make me happier living in it?

Those are all legitimate reasons to renovate. But they are not necessarily the same thing.

A beautiful new kitchen may make you love your home more. A new roof may protect the structure and eliminate a major concern for a future buyer. A garage door replacement might deliver a surprisingly high return when you sell. And an expensive luxury renovation may cost considerably more than the additional value a buyer is willing to pay for it.

Understanding the difference can mean thousands of dollars in preserved equity.

Two important industry studies help homeowners make more informed decisions: the National Association of REALTORS® (NAR) and National Association of the Remodeling Industry (NARI) 2025 Remodeling Impact Report, and Zonda's 2025 Cost vs. Value Report, published through the Journal of Light Construction.

According to the 2025 Zonda / JLC Cost vs. Value Report, exterior upgrades continue to dominate national return rankings. Insights from the NAR Remodeling Impact Report highlight that while major kitchen updates score high for daily satisfaction, practical exterior projects deliver stronger resale returns

Together, these reports provide two different but complementary perspectives:

• What homeowners enjoy most about their renovations.
• How much of the investment they may recover when selling.
• Which projects buyers value.
• Which improvements deliver the strongest resale returns.
• Where homeowners may be spending more than the market is likely to recognize.

We also need to look beyond the national averages. California is a different remodeling environment, and San Diego County has its own construction costs, housing characteristics, buyer expectations, insurance considerations, and neighborhood values.

Let's look at what the numbers actually tell us.

First, understand the difference between ROI and the Joy Score

One of the most important findings in the NAR/NARI study is that financial return is only one measure of a successful home improvement.

NAR calls its homeowner satisfaction measurement the Joy Score.

It measures how happy homeowners are with their completed renovations. It is not a financial return calculation.

The 2025 report found that the typical Joy Score across the measured projects was 8.2. Forty-three percent of homeowners reported feeling happy when seeing their completed project, while another 38% reported feeling satisfied.

Three projects received a perfect Joy Score of 10:

• Adding a primary bedroom suite.
• A kitchen upgrade.
• New roofing.

A bathroom renovation scored 9.8, and a complete kitchen renovation scored 9.7.

Think about what that tells us.

A homeowner may spend $100,000 improving a kitchen and enjoy that improvement every single day for the next ten years. That has real value, even if the eventual buyer does not pay an additional $100,000 for it.

On the other hand, a relatively modest exterior improvement may have a much stronger financial return when the property is sold.

The best improvement for your lifestyle is not necessarily the best improvement for your resale value.

Neither one is automatically the wrong decision. The mistake is confusing the two.

The national Cost vs. Value rankings: What gives homeowners the most back?

Zonda's 2025 Cost vs. Value Report compares the average cost of 28 remodeling projects with the estimated resale value those projects retain.

The report covers 119 U.S. markets.

The following are the national top 10 projects, ranked by their percentage of cost recouped.

2025 National Top 10 Remodeling Returns

Source: 2025 Zonda/JLC Cost vs. Value Report. Figures are national averages.

The first thing that stands out is that eight of the top ten projects are exterior improvements or replacements.

The other surprising finding? The three highest-ranked improvements all return more than twice their original project cost in estimated resale value.

Let's put that into perspective.

The garage door: The unexpected winner

Nationally, replacing a garage door costs an average of $4,672 and adds an estimated $12,507 in resale value.

That represents 267.7% of the project cost recovered.

In other words, the estimated resale value is $7,835 greater than the average project cost.

That is an extraordinary result for a relatively modest improvement.

Why does it perform so well?

A garage door can occupy a significant portion of a home's front-facing exterior. An old, damaged, faded, or outdated door can make an otherwise attractive home look neglected.

Replacing it can immediately improve the home's appearance and the impression a buyer gets before even walking through the front door.

Steel entry doors: Small investment, substantial return

A steel entry door replacement averages $2,435 nationally, with an estimated resale value of $5,270.

The report estimates 216.4% cost recovery.

The front door is another highly visible feature. It contributes to curb appeal, security perception, and the overall impression of how well the home has been maintained.

This is a good example of why an improvement does not have to be expensive to make a meaningful difference.

Manufactured stone veneer: The curb appeal factor

Manufactured stone veneer averages $11,702 nationally and has an estimated resale value of $24,328.

That represents a 207.9% cost recovery.

This improvement can change the visual character of a home's exterior, particularly when used strategically around an entryway or lower façade.

The important word here is strategically.

The objective is not to cover the entire house in stone. It is to improve the architectural appearance and give the property a more finished, desirable presentation.

The minor kitchen remodel: Notice the word minor

The national average cost is $28,458, with an estimated resale value of $32,141.

That is a 112.9% cost recovery.

A modest kitchen update can be a much better financial decision than a complete luxury renovation.

Updating cabinet fronts, countertops, appliances, fixtures, hardware, and flooring can make an older kitchen feel current without the expense of completely redesigning it.

For a homeowner preparing to sell, this distinction matters.

Buyers want a kitchen that feels clean, functional, and attractive. They do not necessarily want to pay for every expensive design decision the previous owner made.

California: The Pacific region tells a different story

There is an important distinction when interpreting the California numbers.

The 2025 Cost vs. Value Report publishes a Pacific regional comparison, not one statewide California average. The Pacific figures should therefore be treated as a regional benchmark rather than as a precise California-only measurement.

They are particularly useful for understanding the remodeling economics relevant to California homeowners.

And the results are interesting.

The Pacific region actually performs exceptionally well on several exterior improvements.

2025 Pacific Region: Top Remodeling Returns

Source: 2025 Zonda/JLC Cost vs. Value Report, Pacific regional averages.

There are some notable differences.

First, manufactured stone veneer ranks ahead of steel entry doors in the Pacific region.

Second, the minor kitchen remodel performs better in the Pacific region than it does nationally, with 129.1% of its cost recovered.

Third, the Pacific region's estimated resale value for a garage door replacement is $12,063, compared with $12,507 nationally.

These figures reinforce an important point: remodeling returns are influenced by local construction costs, labor, housing styles, and what buyers in a particular market are willing to pay.

Why California homeowners should pay attention

California homeowners often face a different set of considerations than homeowners in other parts of the country.

Construction and labor costs can be higher. Permitting and code requirements can affect project budgets. Insurance availability, energy efficiency, weather exposure, fire risk, and property condition can also influence decisions.

A project that looks financially attractive in a national report may have a very different cost structure when completed in San Diego County.

That is why national rankings are a starting point, not a substitute for local analysis.

San Diego County: What do the local numbers tell us?

For historical context on how local figures have shifted year-over-year, you can review our previous analysis in the 2024 Cost vs. Value Report: What Home Improvements Deliver the Best ROI? to see how last year’s rankings compared

San Diego homeowners need more than national averages.

To understand the broader conditions influencing local pricing and inventory before planning a major project, you can review our insights in the August San Diego Real Estate Market Report to see how buyer demand is currently trending

We have a housing market with a wide range of property types, from coastal homes and established neighborhoods to inland communities, luxury properties, condominiums, manufactured homes, and rural properties.

We also have local considerations that can change the value of an improvement:

• Coastal exposure and corrosion.
• Aging roofs and deferred maintenance.
• Fire exposure and insurance concerns.
• Water conservation and drought-resistant landscaping.
• Outdoor living spaces.
• Older electrical, plumbing, and HVAC systems.
• Buyer expectations within individual neighborhoods.

The 2024 Cost vs. Value report provides a published San Diego-specific benchmark. The 2025 report provides the newer Pacific regional comparison, but the publicly accessible data does not provide a verified 2025 San Diego project table.

Rather than present regional numbers as if they were San Diego-specific, it is more useful to show the actual local figures available and clearly identify their reporting year.

San Diego: Published 2024 Cost vs. Value results

Source: 2024 Zonda/JLC Cost vs. Value Report, San Diego, California. Rankings above are calculated by sorting the published San Diego cost-recovery percentages.

Notice something important.

In the 2024 San Diego data, manufactured stone veneer recovered 99% of its cost, while the national benchmark was 153.2%.

That is a substantial difference.

The same project can perform very differently depending on the market.

This is precisely why I would caution homeowners against taking a national remodeling ranking and assuming it automatically applies to their property.

The 2024 San Diego results are historical benchmarks, not current contractor quotes or guaranteed 2026 resale outcomes. The 2025 Pacific data is a newer regional reference, but it does not replace a property-specific San Diego valuation.

To see how these renovation expenses fit into broader buyer expenses across the region, you can review our San Diego Cost of Living: First-Time Buyer vs. Established Homeowner breakdown to better understand what local buyers are managing when entering the market.

The local lesson remains: evaluate the improvement against the actual home, its competition, and its neighborhood.

The financial outliers: When spending more gets you less

Some of the most revealing numbers in the Cost vs. Value report are not at the top of the list.

They are at the bottom.

Homeowners often assume that a larger renovation creates a proportionally larger increase in value.

The numbers do not support that assumption.

Consider the difference between a minor kitchen remodel and a major upscale kitchen remodel.

The kitchen renovation comparison

The upscale kitchen costs approximately $164,000.

Yet the estimated resale value added is only $58,561.

That is not a criticism of beautiful kitchens. It is a reminder that the next homeowner may not share your preferences, and the market does not automatically reimburse you for every dollar spent.

The difference is even more dramatic with primary suite additions.

Primary suite additions

A midrange primary suite addition costs an estimated $170,517 nationally and adds approximately $55,097 in resale value.

That is 32.3% cost recovery.

An upscale primary suite addition costs approximately $351,613 and adds an estimated $63,136 in resale value.

That is just 18% cost recovery.

Think about that.

Spending more than $350,000 does not mean the market will recognize anything close to that investment.

The homeowner may enjoy the additional space for years. But if the objective is to sell in the near future, that is a very different financial calculation.

Solar installation: Another important outlier

The national average cost of solar installation in the 2025 report is $55,937, with an estimated resale value of $16,625.

That is only 29.7% cost recovery.

This does not mean solar has no value.

Potential energy savings, utility arrangements, electricity consumption, battery storage, financing terms, ownership status, and the remaining life of the system all matter.

In California, a solar system's financing or lease arrangement can also affect the buyer's decision.

The lesson is that the resale value of a solar system is not necessarily equal to the amount the homeowner paid for it.

Before installing solar, or when preparing a solar-equipped home for sale, understand the actual ownership and financial obligations associated with the system.

Accessory dwelling units

The national 2025 report estimates an average ADU project cost of $166,406 and an estimated resale value of $68,656, representing 41.3% cost recovery.

That may initially appear disappointing.

But an ADU can have additional economic value that a simple resale comparison does not fully capture.

Potential rental income, multigenerational living, housing flexibility, and long-term property use can make an ADU a sensible investment for the right homeowner.

In San Diego County, where housing needs and multigenerational living arrangements are important considerations, the decision should include rental economics, permitting, construction costs, and the property's specific zoning and site limitations.

The resale calculation is only one part of that decision.

The biggest financial mistake is evaluating every home improvement as though its only purpose is to increase the eventual sale price.

Some improvements are lifestyle investments. Some are income-producing investments. Some protect an existing asset. Some are primarily resale strategies.

Knowing which category applies is the first step toward making a smarter decision.

Asset protection: Not every valuable improvement shows up as ROI

This is where I believe homeowners need to look beyond the remodeling rankings.

A home is usually one of the largest financial assets a family owns.

Protecting that asset is not the same as decorating it.

A leaking roof, failed drainage system, deteriorating siding, damaged electrical components, compromised plumbing, or neglected foundation can become a much more expensive problem if left unaddressed.

These projects may not generate the highest resale ROI percentages.

But that does not make them unimportant.

Consider a roof.

A new roof may not return every dollar spent in the sale price. Yet a roof in poor condition can create inspection problems, financing complications, insurance concerns, buyer objections, and negotiating leverage against the seller.

The same applies to water intrusion, electrical safety, structural concerns, and other deferred maintenance.

There is a difference between adding value and preventing value from being lost.

That distinction matters.

California homeowners have another consideration: Insurance and fire exposure

In parts of San Diego County, homeowners must also consider fire exposure, defensible space, roofing materials, vegetation management, ember-resistant details, exterior materials, and the overall condition of the property.

An improvement that reduces vulnerability may protect more than the property's appearance.

It may help protect the physical asset, improve resilience, and provide documentation of mitigation measures when discussing the property with an insurance carrier.

However, homeowners should not assume that a particular improvement guarantees insurance coverage, eligibility, or a lower premium. Those decisions depend on the individual carrier and property.

For homeowners in higher-risk areas, I would put property protection and insurability considerations into the planning process before discretionary cosmetic upgrades.

A beautiful kitchen does not compensate for an unaddressed roof problem.

or detailed mitigation strategies, review our Zone Zero Compliance & Wildfire Safety Guide before planning exterior updates

The neighborhood ceiling: Why over-improving can hurt your financial return

There is another consideration that homeowners frequently overlook.

I call it the neighborhood ceiling.

Every property has a practical value range influenced by its location, surrounding homes, property type, condition, and comparable sales.

You can put a $200,000 kitchen into a home, but that does not automatically make it worth $200,000 more.

If surrounding properties are selling within a particular range, the market may not support a significant premium simply because one homeowner chose more expensive materials or finishes.

This is especially important in neighborhoods with a wide range of home values, older housing stock, condominiums, and properties that may have already reached the upper end of their market.

Before committing to a major renovation, consider:

• What are comparable homes selling for?
• What condition are competing properties in?
• What features are buyers actually paying more for?
• Does the improvement fit the quality and price range of the neighborhood?
• Will the project make the property more desirable, or simply more expensive to own?

The goal is not to make every house the most expensive house on the block.

The goal is to make the home competitive within its market while protecting as much equity as possible.

There are exceptions, particularly for unique luxury properties and homes where additional features have a specific buyer audience. But even there, the numbers should be evaluated rather than assumed.

Curb appeal: The value of the first impression

The most consistent finding across the 2025 Cost vs. Value report is the strength of exterior improvements.

Eight of the top ten national projects are exterior replacements or improvements.

This is not surprising when you consider how buyers experience a home.

They see the exterior before they see the kitchen.

They notice the driveway, landscaping, front door, garage door, exterior paint, roof condition, and overall maintenance.

And they begin forming an opinion before they ever step inside.

A home that looks neglected can create concerns about what else may have been overlooked.

A home that looks clean, maintained, and well cared for creates a different impression.

This does not mean homeowners should spend thousands on elaborate landscaping or expensive exterior upgrades.

Often, the improvements with the best practical results are relatively simple:

• Clean up and refresh landscaping.
• Trim overgrown trees and shrubs.
• Repair damaged exterior surfaces.
• Refresh paint where needed.
• Replace an outdated or damaged front door.
• Address a worn garage door.
• Improve exterior lighting.
• Clean walkways, driveways, and entry areas.
• Correct visible maintenance issues.

The objective is to create a strong first impression without spending money on improvements that the market may not recognize.

The pre-sale strategy: What should you fix before listing?

This is where a little planning can save homeowners a considerable amount of money.

One of the most common mistakes we see is homeowners deciding to renovate before they have a clear understanding of what their property is worth, who the likely buyer is, and what improvements will actually matter.

They may spend $30,000, $50,000, or even $100,000 on projects that do little to improve the property's competitive position.

The NAR/NARI report offers some helpful insight into what REALTORS® recommend sellers consider before putting their homes on the market.

The top improvements REALTORS® recommend before selling

Source: 2025 NAR/NARI Remodeling Impact Report.

Notice that painting comes first.

It is a relatively affordable way to make a property feel cleaner, brighter, and better maintained.

A full kitchen renovation is not the first recommendation.

A major bathroom renovation is not the first recommendation.

The emphasis is on improving the overall presentation and condition of the property.

That is a very different approach from renovating simply because a homeowner believes everything needs to be new before selling.

A smarter pre-sale improvement plan

Before spending money, I recommend looking at the property in four categories.

1. Essential repairs and protection

Address problems that could affect the transaction, property condition, safety, or buyer confidence.

Examples include:

• Roof leaks and water intrusion.
• Plumbing or electrical issues.
• Structural concerns.
• Damaged flooring.
• Failed or deteriorating exterior materials.
• Safety and maintenance issues.

These projects may not provide a direct dollar-for-dollar return, but leaving them unaddressed can create larger problems during negotiations.

2. High-impact cosmetic improvements

Focus on improvements that make the home look better without requiring a major investment.

Examples include:

• Interior painting.
• Exterior touch-ups.
• Updated lighting.
• Cabinet hardware.
• Minor kitchen improvements.
• Cleaning and refreshing bathrooms.
• Flooring repairs or replacement where justified.

3. Curb appeal and presentation

Make sure the property creates a positive impression from the street and throughout the showing experience.

Examples include:

• Landscaping.
• Entryway improvements.
• Garage door condition.
• Front door appearance.
• Exterior cleaning.
• Lighting.
• Decluttering and staging.

4. Improvements that may not be worth doing

This is often the most important conversation.

A homeowner preparing to sell may not need:

• A complete luxury kitchen renovation.
• An expensive bathroom addition.
• A custom primary suite.
• Premium finishes that exceed neighborhood expectations.
• Major upgrades that a buyer may immediately want to change.

There are exceptions, of course. A property that is significantly outdated compared with competing homes may require a more substantial improvement strategy.

But that decision should come from a market analysis, not an assumption.

What the numbers don't tell you: Buyer psychology and marketability

Cost vs. Value is a financial comparison, but the decision to purchase a home is not based on a spreadsheet alone.

Buyers are evaluating the entire property.

They are looking at condition, maintenance, layout, functionality, location, appearance, and the amount of work they believe they will have to take on after closing.

The NAR/NARI report found that 46% of buyers are less willing to compromise on the condition of a home when purchasing.

That is an important finding.

In a market where buyers have become more selective, a property that is move-in ready and well maintained may have a competitive advantage.

A home does not necessarily need to be completely renovated.

But buyers do not want to feel as though they are inheriting someone else's deferred maintenance and expensive problems.

This is why presentation, maintenance, and strategic improvements matter.

The objective is to remove unnecessary objections and help buyers see the value of the property.

The four questions every homeowner should ask before remodeling

Before investing in a home improvement project, I would encourage every homeowner to answer four questions.

1. Am I doing this for my enjoyment?

If you plan to stay for another ten years and a new kitchen will make your daily life better, that is a legitimate reason to spend the money.

Just do not confuse personal satisfaction with guaranteed financial recovery.

2. Am I protecting an existing asset?

If your roof is failing, drainage is compromised, or your exterior is deteriorating, the priority may be preventing further damage rather than maximizing a remodeling ROI percentage.

3. Am I preparing to sell?

If you plan to sell within the next year or two, the strategy should be different.

Focus on what buyers in your particular market want, what competing homes offer, and which improvements can improve your property's presentation and marketability.

4. Am I improving the property's long-term financial potential?

An ADU, accessibility improvements, energy upgrades, or a property reconfiguration may have long-term benefits beyond immediate resale.

Evaluate those projects based on the intended use, the costs, the applicable regulations, and the potential financial benefits.

Strategic repairs should always be paired with a robust 100-Point Pre-Sale Marketing Plan to maximize buyer visibility."

Our perspective: A home improvement should have a purpose

There is no universal list of improvements that makes sense for every homeowner.

A homeowner in a coastal neighborhood may have different priorities than someone in an inland community with greater fire exposure.

A senior planning to age in place may prioritize accessibility, safety, and functionality.

An executor managing an inherited property may need to preserve equity while preparing the home for sale.

A homeowner facing an insurance renewal may need to address risk mitigation before considering cosmetic improvements.

And a family planning to sell may be better served by a carefully selected list of modest improvements than by an expensive renovation.

This is why we believe homeowners should understand the financial implications before making major decisions.

The smartest improvement is not necessarily the most expensive one. It is the one that accomplishes your objective without unnecessarily sacrificing your equity.

At HomesInSDCounty, our approach is to look at the entire picture:

• What is the property worth today?
• What is its likely value in its current condition?
• What improvements would make the biggest difference?
• What is the neighborhood's realistic value ceiling?
• What would a buyer notice?
• What could become a negotiating issue?
• What should be repaired, improved, or left alone?

Sometimes the answer is to renovate.

Sometimes it is to make a few strategic improvements.

And sometimes the smartest financial decision is to sell the property as it is.

The point is to make that decision with the information in front of you, rather than spending money and hoping the market rewards you for it.

Your home is more than a place to live. For most families, it is one of their largest financial assets.

Protecting that equity deserves a strategy.

Before you remodel, let's look at the numbers.

Thinking about improving your home or preparing to sell?

We help homeowners evaluate their options, identify potential risks, and make informed decisions about their real estate investments throughout San Diego County.

Whether you are considering a renovation, preparing to sell, downsizing, managing an inherited property, or simply wondering where your home stands in today's market, we can help you evaluate the options before committing to an expensive decision.

Brad & Karen Mattonen
HomesInSDCounty | Big Block - LPT Realty
Your San Diego County Real Estate Agent Specialists

We protect your investment, negotiate your success, and fight for your future.

Visit: https://www.HomesInSDCounty.com

Real estate value estimates are not guarantees of future resale prices. Remodeling costs and returns vary by property, location, project scope, materials, labor, market conditions, and buyer preferences. Reported cost recoupment percentages are estimates, not promised profits. Consult qualified contractors and appropriate professionals before undertaking improvements.

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