If you’re like most homeowners, you probably have one (or more!) “dream” renovations. Think big, transformative upgrades that change how your home looks, feels, and functions. But when those projects come with price tags in the tens or even hundreds of thousands, it can be hard to decide which ones are truly worth it.
From the perspective of boosting your home’s value, large-scale renovations don’t always offer the best bang for your buck. Still, for homeowners planning to stay long term, or those whose homes need major modernization – some projects can dramatically improve comfort, efficiency, and resale value.
Here’s how to think about return on investment (ROI) when planning big-ticket projects and a look at which upgrades tend to deliver the most lasting value.
Understanding ROI for Home Renovations
In home improvement, ROI (return on investment) measures how much value a renovation adds to your home compared to what you spent on it. For example, if you spend $50,000 on a new kitchen and your home’s value increases by $30,000 as a result, the ROI for that project is 60%.
That doesn’t mean you’ll get back exactly 60% of what you spent when you sell. It’s a benchmark for understanding which projects hold value over time, versus those that are primarily for your own enjoyment.
A few key points to keep in mind:
- ROI depends on local market conditions. A finished basement might add more value in colder climates, while an outdoor kitchen shines in warmer ones.
- Not all value is financial. Even if a project doesn’t “pay for itself,” it can improve your quality of life or make your home more functional.
- Timing matters. The longer you stay in your home, the more you’ll enjoy the benefits. Plus, there’s a better chance you recoup your costs when you sell.
With that in mind, let’s look at some of the most popular big-ticket renovations, what they typically cost, and how much value they tend to deliver.
1. Kitchen Remodel
Typical cost: $30,000-$80,000+
Average ROI: 50-70%
Few projects transform a home like a new kitchen. Even a midrange remodel (updated cabinets, countertops, and appliances) can make daily life easier and add major appeal for buyers. But costs can climb quickly with custom cabinetry, luxury finishes, or layout changes.
Smart ways to save:
- Refinish or paint existing cabinets instead of replacing them.
- Schedule remodels in the off-season (late winter or early spring) when contractors may be less busy.
- Go for a smart mix of materials! Splurge on statement countertops or appliances if you want, and save on flooring or hardware.
2. Bathroom Remodel or Addition
Typical cost: $15,000-$60,000+
Average ROI: 55-65%
A dated bathroom can drag down an otherwise beautiful home. Modernizing fixtures, tile, and lighting can make a huge difference in livability and resale potential. And adding an additional bathroom often improves functionality for growing families.
Smart ways to save:
- Keep plumbing in place to avoid major reconfiguration costs.
- Opt for quality midrange fixtures rather than high-end designer lines.
- DIY the demolition or painting to reduce labor costs.
3. Primary Suite Addition
Typical cost: $80,000-$200,000+
Average ROI: 45-55%
Adding a spacious primary suite, complete with walk-in closet and ensuite bath, can turn a good home into a great one. While the upfront investment is steep, this upgrade appeals to buyers looking for comfort and privacy, particularly in older homes lacking a true owner’s retreat.
Smart ways to save:
- Build over existing space (like a garage) to minimize foundation and roofing costs.
- Choose durable, timeless materials that won’t need replacing soon.
4. Basement Finishing
Typical cost: $25,000-$75,000+
Average ROI: 60-70%
Finishing a basement adds usable square footage without the cost of a full addition. It’s one of the most cost-effective “big” projects, especially when designed as a multipurpose space like a family room, home office, or guest suite.
Smart ways to save:
- Seal and insulate the foundation yourself before bringing in contractors.
- Use luxury vinyl plank flooring instead of hardwood or carpet for a high-end look at a lower cost.
5. Roof Replacement or Energy-Efficient Windows
Typical cost: $10,000-$40,000
Average ROI: 60-75%
These upgrades aren’t glamorous, but they’re among the most valuable for maintaining your home’s structural integrity and energy efficiency. A new roof or window package can reduce energy bills and reassure buyers that your home is well cared for.
Smart ways to save:
- Ask about manufacturer rebates or energy tax credits.
- Bundle multiple energy upgrades to reduce labor costs.
- Consider impact-resistant shingles or double-pane glass for longer-term durability.
How to Prioritize Major Renovations
If your home needs several large projects, start with function, then protection, then enjoyment:
- Fix what’s broken or unsafe; like roofing, plumbing, or electrical issues.
- Protect your investment; upgrade insulation, windows, and roofing to avoid long-term damage.
- Improve your lifestyle; move on to upgrades that improve comfort or design, only once all your bases are covered.
A trusted contractor can help you build a multi-year plan so you can tackle major projects in the right order and budget accordingly.
Financing Big Renovations the Flexible Way
Whether you’re tackling one big renovation or planning several over time, the right financing approach can make all the difference. Traditional options work well for some projects, but not everyone wants to take on large monthly payments or refinance their mortgage.
That’s where Unison can help. We offer flexible ways for homeowners to access the equity they’ve built for a wide variety of use cases, without the rigid structure of traditional loans. Learn how you can make your renovation goals a reality with more breathing room and control over your finances.
Disclaimer: This content is provided for general informational and educational purposes only and is not intended to serve as financial, investment, legal, tax, or lending advice. The information presented may not apply to your specific situation, and actual outcomes can vary based on individual circumstances, market conditions, and applicable laws. Home equity sharing agreements and loans involve risks, including the potential loss of future home appreciation or other financial implications. Terms, availability, and eligibility for any products mentioned may differ by state, lender, or other factors. We strongly recommend consulting with a qualified financial advisor, attorney, or licensed professional before making any decisions or entering into agreements. Unison Mortgage Corp. is a licensed lender (NMLS ID 2574289); this article may include promotional content related to its services.