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Zonda's 38th Annual Cost vs. Value Report: A Deep Dive into Home Renovations

Zonda has unveiled its much-anticipated 38th annual Cost vs. Value (CVV) report, presenting a comprehensive analysis of the most popular home renovation projects in the United States and their corresponding return on investment (ROI). The findings emphasize that exterior home improvements continue to outperform larger interior remodels in terms of resale value, a trend that homeowners and investors alike should prioritize when considering renovation decisions.

For the second consecutive year, the report ranks garage door replacements as the top remodeling project, followed closely by steel entry door replacements and manufactured stone veneers. Each project showcases remarkable ROI figures, significantly highlighting the impact of curb appeal in today’s discerning housing market. As noted by Clay DeKorne, chief editor of Zonda's JLC Group, exterior replacement projects are solid investments that consistently lead to higher resale values. On the contrary, substantial interior renovations, while potentially rewarding in personal terms, often fail to provide the same financial return when selling a property.

Key Insights from the 2025 Cost vs. Value Report

The report elucidates several essential highlights for homeowners and builders:

1. Dominance of Exterior Projects: Eight out of the top ten projects recognized are exterior replacements, reinforcing the idea that curb appeal remains crucial in enhancing property value.
2. Kitchen Renovations: A minor kitchen remodel is the only interior project to break into the top five, underscoring that functional and livable kitchen spaces continue to hold significant weight in desirability.
3. Emergence of Backup Power Generators: For the first time, backup power generators have entered the top 10 rankings, with impressive ROI, particularly in regions prone to hurricanes and storms.
4. Regional Variances in ROI: There are pronounced regional differences in returns, with the Pacific and West South-Central regions showcasing the highest overall ROI figures for various projects.
5. Newly Added Projects: The report includes newly considered renovations, such as basement remodels, accessory dwelling units (ADUs), and rooftop solar panels, which exhibit diverse payoffs. Among these, basement remodels stand out with consistent returns across the nation.

As noted by Todd Tomalak, a principal of building products advisory for Zonda, changes in housing demand reflect shifts in ROI for renovations. While owners seeking to sell their homes should focus on exterior improvements, those planning to reside longer in their properties may find interior renovations more appealing and beneficial for their living experience.

Understanding the Value of Home Renovations

The primary inquiry the Cost vs. Value Report aims to address is straightforward: What value does a remodeling project add to a property's sale price? The 2025 results were derived from a blend of data collected through surveys of real estate professionals and Zonda's collaboration with Verisk’s XactRemodel®—a tool that enables remodelers, homeowners, and real estate investors to gauge the average costs of various remodeling projects and their value retention at resale. The data spans 119 local markets across the U.S., making it a vital resource for anyone involved in home renovations.

Top Ten Remodeling Projects for 2025 with ROI Percentages

1. Garage Door Replacement: Job Cost - $4,672, Value at Sale - $12,507, Cost Recouped - 267.7%
2. Steel Door Replacement: Job Cost - $2,435, Value at Sale - $5,270, Cost Recouped - 216.4%
3. Manufactured Stone Veneer: Job Cost - $11,702, Value at Sale - $24,328, Cost Recouped - 207.9%
4. Fiber-Cement Siding Replacement: Job Cost - $21,485, Value at Sale - $24,420, Cost Recouped - 113.7%
5. Minor Kitchen Remodel: Job Cost - $28,458, Value at Sale - $32,141, Cost Recouped - 112.9%
6. Vinyl Siding Replacement: Job Cost - $17,950, Value at Sale - $17,313, Cost Recouped - 96.5%
7. Backup Power Generator: Job Cost - $13,534, Value at Sale - $12,902, Cost Recouped - 95.3%
8. Wood Deck Addition: Job Cost - $18,263, Value at Sale - $17,323, Cost Recouped - 94.9%
9. Composite Deck Addition: Job Cost - $25,096, Value at Sale - $22,199, Cost Recouped - 88.5%
10. Fiberglass Grand Entrance: Job Cost - $11,754, Value at Sale - $9,995, Cost Recouped - 84.7%

For anyone looking to invest in home renovations, the latest CVV report offers invaluable insights. It not only delineates which projects yield the highest returns but also informs homeowners and builders about the evolving trends in the real estate market.

To explore the complete report, including geographic averages and in-depth survey findings, visit www.costvsvalue.com. Additionally, Todd Tomalak will host a Building Products Forecast Webinar on October 23, 2025, where attendees can gain insights into industry shifts and anticipate key trends for the upcoming 18 months.