Key Takeaways:Zonda Media’s 2024 Cost vs. Value report details the home improvement projects with the greatest return on investment (ROI). Some of the most notable changes from 2023 include: Exterior projects increase in value. Overall, exterior upgrades and renovations remained the best return on investment, increasing their number of spots in the top 10 projects for ROI. Read More🞃 Garage and entry doors give you the best bang for your buck. 2024’s report saw door replacements surge in value—double what they were last year. Read More🞃 Kitchen remodels rise in value. Minor kitchen remodels offered even more value in 2024, moving up 3 spots on the list. Read More🞃 Electric heat pumps fall out of the top ten. While likely more of a sign of lower gas prices and higher electricity prices, the HVAC conversion/electric heat pump fell from #1 to #12. Read More🞃 |
The 2024 Cost vs. Value Report
Whether you want to increase your home’s value, its energy efficiency, or just add more comfort, there are plenty of reasons to remodel or renovate your home. But before you set out making upgrades, it’s important to consider the project’s cost vs. its value.
Compiled by Zonda Media, the Cost vs. Value Report provides data for 150 metro areas across the United States. The cost data was derived from an econometric model that used data from existing home sales and values, as well as local gross domestic product (GDP), among other factors. The resale value data for each project was aggregated from estimates provided by an online survey that Zonda sent to over 6,000 realtors.
We took a look at the 2024 Cost vs Value Report for Chicago.
Jump to the Top 23 Projects by ROI for Chicago 🞃
Exterior Replacement Projects Reign Supreme
Two words: Curb appeal. For the last 3 decades, exterior replacement projects have provided a higher return on investment than interior discretionary remodels. In Chicago, 8 out of the top 10 projects with the highest percent of cost recovered in 2024 were exterior projects, an increase from 7 out of the top 10 in 2023. Not only do many of these projects improve curb appeal, but they can also improve a home’s energy efficiency.
Garage and Entry Door Replacements Recoup the Most Value
Garage and entry door replacements were the top home improvement projects for return on investment both in Chicago and nationally—doubling in value from 2023. While garage door replacements have been a mainstay in the top 10 projects for ROI, entry doors were not in the top 10 in 2023.
So what’s the appeal of these projects? In short, door replacements are one of the easiest and cheapest projects to undertake, with both garage door replacements and steel entry door replacements coming in at less than $5,000. These projects can keep your house and garage better insulated while also increasing its curb appeal. Plus, when you install exterior doors that meet Energy Star requirements, you may be eligible to receive up to $500 in tax credits.
Minor to Midrange Kitchen Remodels Offer Good Value Recouped and Flexibility
A minor kitchen remodel (midrange) remains a great option for homeowners looking to increase the value of their home. This project jumped up 3 spots compared to its position in 2023.
If your goal is to maximize your home’s value, smaller-scale kitchen remodels that involve new backsplashes, new appliances, and painting cabinets can offer better value for your dollar. Why? Major remodels involve updates which can be a matter of taste. With a minor or midrange remodel it’s easier for new homeowners to come in and update the aesthetic.
Even so, many homeowners are choosing to stay in their homes longer while investing more into projects that add comfort and hit on that ‘wow’ factor, thereby opting for a major kitchen or bathroom remodel.
Electric Heat Pump ROI Slides
Last year’s number 1 project with a 104% ROI, the HVAC conversion (replacing a fossil-fuel-burning furnace or boiler with an electric heat pump) fell to number 12 with a 66% ROI nationally.
This is likely more of a sign of lower gas prices and higher electricity prices. Interestingly, gas furnace sales declined even more than electric heat pump sales in 2023.
Experts predict that electric heat pump sales will accelerate, thanks in part to federal tax credits. Installing an electric heat pump can qualify homeowners for up to $2,000 in tax credits—the highest tax credit of any energy efficient home improvement project.
Top 23 Projects by ROI for Chicago
Project | Job Cost | Resale Value | ROI |
---|---|---|---|
Entry Door Replacement | Steel | $2,270 | $4,447 | 195.9% |
Garage Door Replacement | $4,287 | $6,573 | 153.3% |
Manufactured Stone Veneer | $10,840 | $14,419 | 133.0% |
Minor Kitchen Remodel | Midrange | $26,395 | $24,775 | 93.9% |
Grand Entrance | Fiberglass | $11,357 | $9,503 | 83.7% |
Deck Addition | Wood | $15,793 | $11,627 | 73.6% |
Window Replacement | Vinyl | $21,396 | $15,757 | 73.6% |
Siding Replacement (Vinyl) | $18,925 | $13,842 | 73.1% |
Window Replacement | Wood | $25,173 | $18,380 | 73.0% |
Siding Replacement | Fiber-Cement | $23,166 | $16,030 | 69.2% |
Bath Remodel | Midrange | $23,477 | $16,098 | 68.6% |
HVAC Conversion | Electrification | $18,360 | $12,532 | 68.3% |
Roofing Replacement | Asphalt Shingles | $26,307 | $15,281 | 58.1% |
Deck Addition | Composite | $25,005 | $13,336 | 53.3% |
Roofing Replacement | Metal | $42,987 | $21,038 | 48.9% |
Major Kitchen Remodel | Midrange | $81,275 | $37,666 | 46.3% |
Bath Remodel | Universal Design | $38,457 | $17,389 | 45.2% |
Bath Remodel | Upscale | $74,403 | $32,997 | 44.3% |
Major Kitchen Remodel | Upscale | $156,555 | $58,120 | 37.1% |
Primary Suite Addition | Midrange | $153,844 | $53,005 | 34.5% |
Bathroom Addition | Midrange | $54,281 | $17,246 | 31.8% |
Bathroom Addition | Upscale | $99,573 | $29,007 | 29.1% |
Primary Suite Addition | Upscale | $316,352 | $67,743 | 21.4% |
Tap Into Your Home’s Equity To Fund Renovations
Starting a renovation or home improvement project is a big undertaking, so let us help you figure out the funding. We offer several different types of home equity loans that allow you to pay for home improvements by utilizing your home’s equity. A home equity line of credit (HELOC) is a variable rate home equity loan that offers access to a line of credit to draw on when you need it.
If you want to be protected from a rising rate environment, consider a fixed-rate Conventional Equity Loan. With a fixed-rate Conventional Equity Loan, you’ll enjoy the security of one low fixed rate and payment with a variety of terms available.
Make Your House a Home
While a project’s cost vs. value is important to consider when remodeling or renovating your home, it’s just one of many considerations. At the end of the day, being comfortable in your living space is as good a reason as any to tackle that next project.
See if one of our low-rate home equity loans, cash-out refinance, or personal loans can help make your dream design a reality. Fill out this form to schedule a free consultation with one of our Residential Lending Specialists, or call 1-800-323-2611.