Home renovation is exciting, but it's also a significant investment. That’s why it’s important to carefully weigh the benefits and the cost. Some renovation projects offer more return on investment (ROI) than others, so it's essential to choose upgrades that not only improve your quality of life but enhance your home’s value.
One renovation that often sparks debate is window replacement. Where does it rank in the hierarchy of smart renovations for ROI? Let’s explore the various home renovation options, where window replacement stands, and why it might be a wiser investment than you think!
ROI in Home Renovations
Before diving into specific projects, it's helpful to understand what we mean by ROI in home renovations. ROI is the percentage of the cost of a renovation that is recouped in the form of increased home value. For example, if you spend $10,000 on a kitchen remodel and it adds $7,000 to the value of your home, your ROI is 70%.
However, it’s important to note that ROI isn't the only factor to consider when deciding on renovations. Some projects improve the livability and comfort of your home in ways that are hard to quantify, while others may be essential for maintaining the structural integrity of your home. But if maximizing financial return is a priority, choosing high-ROI projects is a good call.
High-ROI Home Renovations
When it comes to home renovations, some upgrades consistently offer a better return on investment than others. Here are some of the top contenders:
Kitchen Remodels
60 - 80% ROI
The kitchen is known as “the heart of the home,” so it’s no surprise that kitchen remodels rank high in terms of ROI. Depending on the scale, kitchen upgrades typically return anywhere from 60% to 80% of the cost. For a minor kitchen remodel — think new countertops, refreshed cabinets, and updated appliances — homeowners can expect to recover up to 80% of their investment.
A major kitchen remodel, which might involve changing the layout, installing custom cabinets, or adding high-end finishes, tends to yield a lower ROI, around 60-65%. While it can be more expensive, it's still a worthwhile renovation because buyers are often willing to pay more for a move-in-ready kitchen.
Bathroom Remodels
60 - 70% ROI
A bathroom renovation, like a kitchen remodel, can significantly impact your home’s value. It’s a space that buyers prioritize because it's essential to everyday living. Mid-range bathroom remodels, such as replacing outdated fixtures, installing a new vanity, and updating the lighting, offer an average ROI of around 70%. A more luxurious remodel, featuring high-end finishes and expanded space, might see a slightly lower ROI, around 60%.
For homeowners, a bathroom renovation can enhance the aesthetic and functionality of the space, adding to the overall enjoyment of the home while still offering a solid return.
Curb Appeal Projects
65 - 95% ROI
First impressions matter, and curb appeal projects are often among the best for ROI. Landscaping upgrades, fresh paint, and a new front door can do wonders for your home's exterior. A new entry door can offer an impressive ROI of up to 75-90%, depending on the material. Garage door replacements also provide a solid return, typically around 95%, making it one of the best value home renovations available.
Exterior improvements can make your home stand out and captivate potential buyers from the moment they pull up, making them an excellent investment.
Key Fact
A new entry door can offer an impressive ROI of up to 75-90%.
Deck Addition
60 - 75% ROI
Adding a deck can enhance the aesthetic and functional aspects of your outdoor space. A wooden deck addition offers an ROI of around 65-75%, while a composite deck might see returns closer to 60%. Not only do decks provide a great place for outdoor entertaining, but they can also be a major selling point for potential buyers, especially in areas with good weather.
Where Does Window Replacement Rank?
Alright–let’s talk window replacement! Many homeowners wonder if replacing old windows is worth the cost, especially compared to more glamorous upgrades like a kitchen or bathroom remodel. Do windows really matter that much? The answer is, yes! window replacement is often one of the best home renovations for ROI.
Energy Efficiency and Cost Savings
One of the key benefits of replacing your windows is energy efficiency. Modern windows are designed to keep your home better insulated, reducing energy costs by keeping heat inside during the winter and outside during the summer.
According to Natural Resources Canada, windows, doors, and skylights can account for up to 35% of total house heat loss. By upgrading to energy-efficient windows, homeowners can significantly reduce energy costs.
The energy savings alone can make window replacement a valuable long-term investment, particularly in older homes with drafty, single-pane windows. In fact, Energy Star estimates that homeowners can save an average of $126 to $465 annually by replacing single-pane windows with more efficient alternatives.
Aesthetics and Curb Appeal
Windows are a major architectural feature, and old, worn-out windows can make even a well-maintained house look dated and unappealing. New windows can dramatically improve your home's curb appeal, making it more attractive. From a buyer’s perspective, new windows signal that the home is well cared for and energy-efficient–major selling points.
This combination of aesthetic appeal and functionality gives window replacement a high perceived value, which often translates to a better ROI when it comes time to sell.
Average ROI for Window Replacement
So, how does window replacement stack up in terms of actual return on investment? According to Remodeling Magazine's Cost vs. Value Report, homeowners can expect to recoup around 70-75% of the cost of replacing windows when they sell their home.
This makes it one of the top-performing renovations in terms of ROI.
PVC window replacements tend to offer slightly higher returns than wood windows, although the difference isn’t dramatic. PVC windows have an average ROI of about 74.3%, while wood windows offer a return of 69.5%. Both types are excellent choices, but PVC is often more affordable and requires less maintenance, which is why it edges out wood in terms of ROI.
Verdict
Window replacement ranks among the best home renovations for ROI, offering a solid return of about 70-75%.
Beyond the financial returns, replacing your windows can lead to significant energy savings, improved comfort, and enhanced curb appeal, all of which add value to your home.
Why Window Replacement is a Solid Investment
Beyond the numbers, there are a few key reasons why window replacement is such a good investment, both financially and for your everyday enjoyment and comfort!
Durability and Low Maintenance
Modern windows, particularly those made from PVC, or more advanced mPVC, are designed to last for decades with minimal maintenance. Unlike older windows that may require regular painting, sealing, or repairs, new windows are typically maintenance-free. This durability means that even if you’re not planning to sell your home right away, the long-term benefits make window replacement a sound financial decision.
Improved Comfort and Noise Reduction
Replacing old windows can improve the overall comfort of your home. New windows with double or triple panes, low-E coatings, and insulated frames provide better temperature regulation, reducing drafts and hot spots. Plus, these features often reduce outside noise, creating a quieter and more pleasant living environment.
Tax Credits and Incentives
Depending on where you live, replacing your windows might make you eligible for tax credits or local energy efficiency incentives. For Ontario and Quebec homeowners, the Greener Homes Loan is still currently available (at the time of writing) which can help offset the initial cost, making window replacement an even more attractive investment!
Other Smart Renovations
While window replacement is an excellent renovation for ROI, it’s worth considering other high-ROI projects that might fit your home’s specific needs. As mentioned earlier, kitchen and bathroom remodels, exterior upgrades like a new front door, and adding a deck are all strong contenders. The best renovation for you will depend on your home's current condition, your budget, and your long-term goals.
The Bottom Line: Is Window Replacement Worth It?
Window replacement ranks among the best home renovations for ROI, offering a solid return of about 70-75%. This puts it on par with — or better than — many popular renovations, including bathroom remodels and kitchen upgrades. Yet, window replacement is often overlooked! Beyond the financial returns, replacing your windows can lead to significant energy savings, improved comfort, and enhanced curb appeal, all of which add value to your home.
If you're looking for a renovation that will pay off in terms of personal comfort and resale value, window replacement is a smart choice. Whether you’re planning to sell or simply want to make your home more enjoyable, this project offers a compelling combination of immediate and long-term benefits.
You could say it’s a win-win-window situation!
Sources:
https://modernize.com/homeowner-resources/windows/calculating-the-return-on-your-window-investment
https://www.kallista.com/articles/will-kitchen-remodel-add-value
https://www.zillow.com/learn/roi-for-bathroom-remodel/
https://allriteremodeling.com/roi-of-exterior-improvement/
https://www.bankrate.com/homeownership/home-renovations-that-return-the-most-at-resale/
https://www.energystar.gov/sites/default/files/2024-02/Windows%20Messaging_2024_FINAL.pdf