Mortgage rates are expected trend lower in 2026, and wages are finally expected to grow faster than home prices. But it is still a tough housing market. With a strong increase in equity, many homeowners with amazingly low interest rate mortgages may decide to stay put and make home renovations instead of moving. Expect households to have more roommates and fewer babies. Redfin predicts that buyers will prioritize affordability, climate safety, and being closer to the office as more jobs are now requiring a return to the office.
Whether you are remodeling to stay or to sell, it is helpful to know which renovations yield the highest return on investment.
Remodeling Magazine started compiling an annual Cost vs Value report as far back as 2007, and that report is now compiled by The Journal of Light Construction, a part of Zonda Media, a Delaware corporation. You can download the complete report free, going back as far as 2007, at www.costvsvalue.com.
They break the data out by region and city. In 2025, the renovations yielding the highest return were exterior projects. In 2025 Minneapolis market, the projects that recouped at least 80% of value were.
- Garage door replacement – 232.7%
- Entry door replacement (steel) – 178.1%
- Manufactured stone veneer – 162.8%
- Minor kitchen remodel – 101.0%
- Siding replacement – 95.6% for fiber-cement and 75.8% for vinyl
- Deck addition – 85.5% for wood, 85.3% for composite
Download the full report for more details, but keep in mind that unless you are making the renovations solely for the purpose of resale, your personal satisfaction may also have high value. And even if you don’t recoup all your cost in dollars and cents, you may get more back in a quicker sale.
Buyers tend to shop with their minds… but buy with their hearts. Your goal when selling is to make them fall in love with your home as soon as they enter and think, “ooohhh… I want to live here!”
Complete data from the Remodeling Cost vs Value Report for 2025https://www.jlconline.com/cost-vs-value/2025/ and other years can be downloaded free. Reports are available nationally, regionally and by city.
Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com
