What Home Improvements Increase Home Value in 2025?

Homeowners looking to sell or boost their property’s value in 2025 need to focus on upgrades that deliver a strong return on investment. Some projects consistently attract buyers and increase resale value, while others might not be worth the cost. Recent data from sources like the National Association of Realtors (NAR), Zillow, and HomeLight provide clear insights into what matters most in today’s market.

This blog will help you decide on which home improvement projects are worth your investment. If you live in North Georgia, call Bear Mountain Custom Painting for house painting in Alpharetta, garage floor coatings in Atlanta, and many other home improvement projects. We would be happy to hear from you.

2025’s Best Home Improvements for Adding Value

We’ve analyzed the past year of buyer data and put together this initial list of priority home improvement projects:

• Minor kitchen remodels (recoup up to 81.6%)
• Bathroom renovations (return up to 93.5%)
• Energy-efficient upgrades (windows, insulation, HVAC systems)
• Garage door replacements (recoup over 100%)
• Outdoor living enhancements (patios, decks, landscaping)
• Smart home technology (security systems, smart thermostats)
• Flooring upgrades (hardwood or luxury vinyl plank preferred)
• Basement or attic conversions (ROI of 70% to 75%)

Kitchen Remodeling Remains On Top

Kitchen renovations continue to be one of the best ways to add value. According to Seattle Credit Union, a minor kitchen remodel can recover 81.6% of its cost at resale, while a major remodel typically recoups around 62.7%. HomeLight also reports that modernizing a kitchen with new appliances, fresh countertops, and updated cabinetry makes a home significantly more appealing to buyers.

Energy-efficient appliances and smart technology upgrades are also in demand. Features such as touchless faucets, energy-efficient dishwashers, and LED lighting are becoming standard expectations rather than luxury add-ons. Homes with these upgrades tend to sell faster and for higher prices.

Bathroom Upgrades are Still Popular

Bathrooms play a major role in home valuation. According to NAR’s research, bathroom remodels can recoup between 87.7% and 93.5% of their cost. Zillow also highlights that adding a walk-in shower, double vanity, or upgraded tile work can increase buyer interest.

Even small updates, like swapping out old fixtures for modern ones, replacing outdated mirrors, or improving ventilation, can make a big difference. Smart features, such as programmable heated floors and LED backlit mirrors, are growing in popularity and give a home a more modern feel.

Energy Efficiency and Smart Home Features

With energy costs rising, buyers are prioritizing homes that offer lower utility bills. Energy-efficient improvements, like Energy Star-rated windows, extra insulation, and high-efficiency HVAC systems, consistently add value. According to a report by NAHB, homes with energy-efficient features attract more interest and often sell at a premium.

Home automation is another high-demand trend. Buyers appreciate smart home security systems, video doorbells, Wi-Fi-enabled thermostats, and smart lighting. These upgrades are now expected in many markets, and homes lacking them may feel outdated.

Curb Appeal Matters

Exterior upgrades continue to be among the most valuable projects. Zillow’s analysis found that replacing a garage door can recoup over 100% of its cost, while a new entry door or manufactured stone veneer adds considerable curb appeal.

Landscaping improvements, such as well-maintained lawns, fresh mulch, and strategic lighting, increase perceived home value. Homeowners who invest in professional landscaping services before selling often see higher offers and a faster sale process.

Outdoor Living Spaces are Trending

The pandemic years increased the demand for outdoor spaces, and that trend remains strong. According to NAHB, features like covered patios, decks, and fire pits are highly desirable. Homebuyers are looking for properties with functional outdoor spaces, whether it’s for entertaining, relaxation, or work-from-home flexibility.

Adding an outdoor kitchen, a seating area with weather-resistant furniture, or a well-designed garden can increase a home’s value. Zillow data also suggests that homes with well-maintained decks or patios sell for up to 5% more than those without.

Basement and Attic Conversions

Finished basements and attics provide additional living space, which appeals to buyers looking for flexibility. HomeLight reports that finishing a basement can offer a return on investment of 70% to 75%. Converting an attic into a bedroom or home office also increases the usable square footage, making the home more attractive to buyers who need extra space.

Multi-use spaces are in demand. With remote work continuing to be common, many buyers look for dedicated office spaces, home gyms, or even in-law suites. Homeowners who reconfigure unused areas into practical spaces often see strong returns.

Flooring Upgrades are Worth the Investment

Replacing outdated flooring is one of the easiest ways to modernize a home. Hardwood floors remain highly desirable, and according to a 2024 NAR study, homes with hardwood flooring tend to sell faster and at higher prices. Luxury vinyl plank (LVP) flooring is another top choice, offering the look of wood with better durability and lower maintenance.

Carpeted homes are becoming less popular, as buyers prefer hard-surface flooring for its longevity and ease of cleaning. If replacing carpet isn’t an option, professional deep cleaning can still enhance a home’s appeal.

Open Floor Plans vs. Defined Spaces

For years, open-concept layouts were the gold standard in home design. However, recent data from NAHB indicates a shift toward semi-open layouts that provide separation while maintaining connectivity. Buyers now want homes with dedicated areas for work, relaxation, and entertainment. Features like French doors, sliding partitions, or built-in shelving allow homeowners to create flexible spaces.

Projects That Don’t Always Add Value

Not all renovations provide a good return. According to Seattle Credit Union, projects such as swimming pools, luxury kitchens beyond the neighborhood standard, and over-personalized renovations often fail to recoup their costs. Pools, in particular, can deter buyers due to maintenance expenses. And many homeowners would rather have bigger rooms than high end walk-in closets.

Another cautionary upgrade is high-end customizations, such as over-the-top home theaters or extravagant built-in furniture. While these features might appeal to niche buyers, they rarely increase overall resale value in a way that justifies the cost.

By focusing on these high-ROI projects, homeowners can increase their property’s marketability and resale value in 2025. Keeping up with buyer preferences, energy efficiency standards, and functional space trends will help sellers stand out in a competitive real estate market.

From house painting in Kennesaw to pool deck resurfacing and more, call Bear Mountain Custom Painting. We would be happy to provide you with a complimentary quote in the Greater Atlanta area.