VM Power Construction
Data-backed analysis of renovation returns. Discover which projects deliver 75-100% ROI and which ones to avoid. Pennsylvania & New Jersey specific insights included.
Whether you're planning to sell your home soon or simply want to build equity, understanding renovation return on investment (ROI) is crucial. Not all home improvements are created equal—some projects return over 100% of their cost, while others barely recover 50%.
After completing over 500 renovation projects across Pennsylvania and New Jersey, we've gathered real-world data on what actually increases home value. This guide combines our firsthand experience with the latest national data from the Cost vs. Value Report 2025 and regional market analysis.
Important: ROI varies significantly by region. A project that returns 80% nationally might return 90% in the Lehigh Valley or 70% in rural areas. Always consider your local market.
Based on the latest Cost vs. Value data and our regional experience, here are the renovations that deliver the best returns:
| Project | Avg Cost | Value Added | ROI |
|---|---|---|---|
| Garage Door Replacement | $4,300 | $4,100 | 95% |
| Manufactured Stone Veneer | $10,900 | $11,200 | 103% |
| Minor Kitchen Remodel | $26,800 | $22,700 | 85% |
| Siding Replacement (Fiber Cement) | $19,600 | $15,400 | 79% |
| Window Replacement (Vinyl) | $20,100 | $14,800 | 74% |
| Bathroom Remodel (Mid-Range) | $24,600 | $17,800 | 72% |
| Major Kitchen Remodel | $77,900 | $52,400 | 67% |
| Deck Addition (Wood) | $17,600 | $11,200 | 64% |
| Roof Replacement | $30,100 | $18,700 | 62% |
| Basement Finishing | $57,500 | $32,400 | 56% |
*Data based on 2025 Cost vs. Value Report and regional PA/NJ market analysis
Kitchens remain the heart of the home and a critical factor in buying decisions. However, not all kitchen remodels are created equal. Here's what the data shows:
Average Cost: $26,800
Average Cost: $77,900
Choose a minor remodel when:
Choose a major remodel when:
In most Lehigh Valley neighborhoods, kitchen remodels over $50,000 rarely recoup their full investment. Focus on quality mid-range finishes rather than luxury upgrades unless you're in a premium market like parts of Bethlehem or certain Philadelphia suburbs.
Bathrooms consistently rank as the second most important room for buyers. Updated bathrooms can make or break a sale, especially in competitive markets.
Standard fixtures, tile, vanity replacement
Premium fixtures, custom tile, freestanding tub
Accessibility features, walk-in shower, grab bars
If a full remodel isn't in your budget, these updates deliver impressive returns:
First impressions matter. Buyers often decide whether they're interested within seconds of seeing a home's exterior. That's why curb appeal projects consistently deliver strong ROI.
One of the highest-return projects. Modern insulated doors with windows dramatically improve curb appeal.
Adding stone veneer to the front entry area delivers exceptional returns and instant upscale appeal.
Durable, low-maintenance, and attractive. Outperforms vinyl for long-term value.
Steel entry doors with decorative glass provide security and immediate curb appeal boost.
Roof replacement returns about 62% ROI—not great by itself. However, a failing roof can kill a sale entirely. Consider roofing as protective investmentrather than value-add.
Warning: In home inspections, roof issues are deal-breakers. A new roof won't significantly increase your asking price, but an old or damaged roof can reduce offers by $15,000-$30,000 or more.
Converting unused space into livable square footage can significantly increase home value—but the ROI varies widely based on execution and market.
While 56% ROI seems modest, finished basements offer significant lifestyle benefits and can be the deciding factor for families needing extra space. In competitive markets, they differentiate your home from others.
Attic conversions typically outperform basement finishing because they add true above-grade living space. Adding a bedroom and bathroom to an attic can increase bedroom count—a major value driver.
Some renovations feel like great investments but rarely pay off at resale. Unless you're planning to stay long-term, think twice about these:
Costs $50,000-$100,000+. Many buyers see pools as maintenance liabilities. In PA/NJ, short swim seasons limit appeal further.
Over-improvement is real. A $200,000 master suite rarely adds $100,000 in value unless you're in a luxury neighborhood.
While working from home is common, buyers prefer flexibility. A bedroom they can convert beats a dedicated office.
Buyers often don't value sunrooms as highly as regular living space. Cost per square foot is high for limited functionality.
The most common mistake we see: spending $150,000 on renovations in a $400,000 neighborhood. Your home can only be worth so much—typically 10-15% above the highest-priced comparable. Know your ceiling before investing.
Pennsylvania's diverse housing market—from Philadelphia suburbs to Lehigh Valley to rural areas—creates varying ROI expectations. Here's what we've observed:
| Project | PA Average | National Avg |
|---|---|---|
| Minor Kitchen Remodel | $24,500 | $26,800 |
| Bathroom Remodel (Mid) | $22,800 | $24,600 |
| Basement Finishing | $52,000 | $57,500 |
| Roof Replacement | $28,500 | $30,100 |
New Jersey's higher property values and taxes create unique renovation dynamics. Buyers expect more, but they're also willing to pay more for quality updates.
New Jersey buyers are particularly sensitive to energy efficiency due to higher utility costs. Solar panels, high-efficiency HVAC, and quality insulation can deliver above-average returns in this market.
Beyond choosing the right projects, here's how to ensure maximum return:
Research comparable sales. Your home can only be worth about 10-15% above the highest recent sale. Don't exceed this ceiling with renovations.
Mid-range, quality materials consistently outperform luxury options for ROI. Buyers appreciate durability more than brand names.
Proper permits and professional work increase buyer confidence. DIY renovations often raise red flags during inspections.
Avoid highly personal choices. Gray, white, and neutral tones appeal to more buyers than bold colors or unique finishes.
Keep receipts, warranties, and before/after photos. This documentation proves value to buyers and can justify higher asking prices.
Home renovation is both an investment and a lifestyle decision. The projects that deliver the best ROI—garage doors, stone veneer, minor kitchen remodels, and mid-range bathroom updates—also happen to be the ones that make daily life better.
Remember these key principles:
VM Power Construction has completed 500+ renovations across Pennsylvania and New Jersey. We provide honest assessments of what will—and won't—add value to your specific home.
With 20+ years of experience and 500+ completed projects, VM Power Construction is a licensed and insured contractor serving Pennsylvania (License #PA158550) and New Jersey (License #13VH11744800). We specialize in kitchen remodeling, bathroom renovations, home additions, and complete home transformations.