Which Home Remodeling Projects Are Most Profitable?

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Home remodeling projects that increased a home’s sustainability or increased a home’s functionality were the most profitable in 2015, according to the Texas Remodel Valuation Report by the Texas Association of REALTORS®.

Fiberglass attic insulation proved the most profitable home project, with a recoup of up to 163.4 percent of project costs. Steel entry door replacements, which often rank as a profitable home improvement project, recouped up to 163.1 percent of cost.

Manufactured stone veneer projects – such as for siding, fireplace, and decorative projects – recouped up to 157.9 percent of project costs. Garage door replacements also proved profitable, recouping up to 112.1 percent of costs.

Although this is different from previous years, it’s notable that bathroom, deck, and master suite additions were ranked among the least profitable home projects, recouping as little as 25.5 percent of costs. The report found that, in general, small and mid-level projects were more profitable in 2015.

“There are many factors that go into whether a remodeling project is a good fit for a home in addition to impact on resale value, such as the homeowner’s expected tenure in the house and, for energy-efficient upgrades, how long it will take the project to pay for itself in cost savings,” said Texas Association of REALTORS® Chairman Leslie Rouda Smith.

She also said, “A growing number of Texas homebuyers are opting to purchase lower-priced homes that can be remodeled to suit their exact needs or make the home more energy efficient. More and more Texas homesellers, too, are seeing the value in investing in a few strategically chosen projects before listing to sell their home faster and potentially at a higher price.”

The report analyzed 30 different remodeling projects and their recoup costs in the United States, in the West South Central U.S., and in the cities of Austin, Dallas, El Paso, Houston, McAllen, and San Antonio.