Home Improvement Projects That May Add Value to Your Home

Whether you're planning to sell in the near future or simply want to build equity, choosing the right home improvement projects may increase your home's value and make it more appealing to future buyers. While not every renovation delivers the same return, strategic upgrades can offer a strong return on investment (ROI) and improve your day-to-day enjoyment of your home. 

Kitchen Remodeling Delivers One of the Highest Returns 

If you're looking for a renovation that may significantly increase your home's resale value, start with the kitchen. 

According to the 2025 Cost vs. Value Report, a minor midrange kitchen remodel recoups an average of 113% of its cost, making it one of the few interior home improvement projects that could return more than the amount invested. A typical project costing about $28,458 adds roughly $32,141 in resale value.  

The best returns often come from modest updates such as: 

• Refacing or repainting cabinets 
• Replacing countertops 
• Installing new energy-efficient appliances 
• Updating lighting fixtures 
• Replacing flooring 

While luxury kitchen renovations may improve your enjoyment of the space, they typically deliver a lower resale return than a well-executed cosmetic refresh.  

Bathroom Remodeling May Increase Home Value 

Bathrooms are another area buyers pay close attention to when evaluating a home. An updated bathroom can help a property feel cleaner, brighter, and more move-in ready. 

The 2025 Cost vs. Value Report found that a midrange bathroom remodel recoups approximately 80% of its cost. 

• Popular bathroom improvements include: 
• Updated vanities and countertops 
• New flooring and tile 
• Modern lighting 
• Water-saving fixtures 
• Walk-in showers 

Even relatively small updates can improve your home's appeal and marketability. 

Finish Your Basement for Additional Living Space 

Adding usable square footage is one of the most effective ways to potentially increase home value without building an addition. 

The 2025 Cost vs. Value Report found that a basement remodel recoups approximately 71% of its cost at resale. Whether used as a family room, home office, fitness area, or guest space, a finished basement can provide flexible living space that appeals to a wide variety of buyers. 

As more homeowners seek multifunctional spaces, a basement renovation may help your home stand out in a competitive market. 

Replace Your Roof to Protect Your Home 

A roof replacement may not be the most exciting home renovation, but it could make a significant difference when selling your home. 

According to the 2025 Cost vs. Value Report, an asphalt shingle roof replacement recoups approximately 68% of its cost, while helping reassure potential buyers that they won't face a major repair expense shortly after moving in.

Additional benefits include: 

• Improved curb appeal 
• Better protection from the elements 
• Increased buyer confidence 

What Factors Affect Home Renovation ROI? 

The value of a home improvement project depends on several factors beyond the renovation itself, including: 

• Local housing market conditions 
• Neighborhood home values 
• Quality of workmanship 
• Materials and finishes used 
• Current design trends 
• Buyer preferences 

Before beginning a major renovation, consider which projects are most desirable in your local market and align with your long-term plans for the home. 

Home Improvements That May Not Increase Home Value 

Not every upgrade translates into a higher resale price. Some projects can actually limit buyer appeal, including: 

• Highly customized renovations 
• Converting bedrooms into specialty spaces 
• Luxury upgrades that exceed neighborhood standards 
• Features that require extensive maintenance 
• Trend-driven designs that may quickly become dated 

When resale value is a priority, it's often best to focus on updates with broad, lasting appeal. 

Finance Your Home Improvement Project with an HVCU HELOC 

Whether you're planning a kitchen remodel, bathroom renovation, basement remodel, or roof replacement, a Home Equity Line of Credit (HELOC) from Hudson Valley Credit Union can help you finance your project.

An HVCU HELOC can help you make home improvements, creating a space you'll enjoy today while potentially adding value in the future. Call or stop by any branch to get started.  

Please note that the Cost vs. Value figures are 2025 national averages and actual costs and resale values may vary by market and project.