Thinking of tapping your home equity for a remodel? You're not alone. With rising home values and stubbornly high mortgage rates, many homeowners are opting to renovate rather than move. While remodeling can boost comfort and resale value, not all home upgrades are worth the investment.
In fact, some of the most popular renovation projects offer shockingly low returns on investment — meaning you could spend tens of thousands and recoup just a fraction when you sell.
This article breaks down 10 of the most overrated home remodels in 2025 and offers smarter, more strategic alternatives that give your home — and your wallet — more bang for your buck.
Check home improvement loan options and rates. Start here1. Upscale Bathroom Addition
Average cost: $105,498
ROI: 48.2%
Adding a luxurious new bathroom might feel like a dream come true — but it’s rarely a wise investment. With an ROI below 50%, you're likely to lose over $50,000 on this upgrade at resale.
What to do instead:
A midrange bathroom remodel (think: new tile, fixtures, and lighting) costs far less and recoups about 66.7% of its cost, according to the Cost vs. Value report.
2. Major Kitchen Remodel (Upscale)
Average cost: $154,483
ROI: 40.1%
It’s tempting to go all-out on the kitchen — especially if you love to cook or entertain — but a high-end overhaul often doesn't pay off. Upscale appliances, layout changes, and custom cabinetry rarely appeal equally to all buyers.
What to do instead:
A minor kitchen remodel (cabinet refacing, new counters, energy-efficient appliances) runs around $27,000 and delivers a stellar 96.1% ROI.
3. Primary Suite Addition (Upscale)
Average cost: $358,841
ROI: 22.7%
This is the lowest-return project in the Cost vs. Value report. While a deluxe bedroom suite may be appealing, most buyers won’t pay a premium for it — especially at this price tag.
What to do instead:
Consider finishing your attic or basement. NAR’s Remodeling Impact Report shows cost recovery of up to 86%, with added square footage and utility.
4. Bathroom Remodel with Universal Design
Average cost: $43,317
ROI: 41.3%
Universal design upgrades — like walk-in showers, grab bars, and wider doorways — improve accessibility, especially for aging homeowners. But they come at a steep price and return just 41.3% of their cost at resale.
What to do instead:
Because accessibility features can limit broad market appeal, a midrange bathroom remodel with stylish finishes and a walk-in shower offers a smarter, more versatile upgrade. It delivers a stronger ROI — 66.7% on average — while still offering subtle accessibility.
5. Composite Deck Addition
Average cost: $24,312
ROI: 47.1%
Outdoor living is hot, but composite decks are pricey and don’t deliver strong resale returns. Maintenance-free materials may appeal to some, but not all.
What to do instead:
A wood deck costs less and recovers 82.9% of its value. Or boost backyard appeal with landscaping and exterior paint.
6. Grand Entrance (Fiberglass Door Replacement)
Average cost: $11,648
ROI: 47.5%
While stylish, this upgrade is surprisingly underwhelming in ROI. It's better to focus on simpler, more impactful entry updates.
What to do instead:
Install a steel entry door — it’s more affordable and boasts an ROI of 188.1%, making it one of the best-value projects.
7. Bathroom Addition (Midrange)
Average cost: $57,090
ROI: 54.5%
Like its upscale counterpart, a midrange bath addition struggles to deliver strong returns — especially if space must be reconfigured or extended.
What to do instead:
Maximize your existing square footage instead. Enhance a half-bath with a walk-in shower or better lighting for less money and more buyer appeal.
8. Vinyl Siding Replacement
Average cost: $16,348
ROI: 80.2%
This is a decent return — but it’s not the best choice if you’re aiming to maximize ROI. Vinyl’s value is strong, but there's an even smarter upgrade.
What to do instead:
Opt for manufactured stone veneer, which delivers a 153.2% ROI and gives your home a polished, modern look.
9. Asphalt Shingle Roof Replacement
Average cost: $29,766
ROI: 60.7%
New roofing is essential if yours is leaking — but it’s not the most effective cosmetic upgrade if your roof is functional. It’s also one of the more expensive maintenance items.
What to do instead:
Focus on high-impact visuals like a new garage door (ROI: 194.2%) or paint the exterior for instant curb appeal.
10. Solar Panel Installation
Varies widely by region
ROI: Inconsistent at resale
Solar panels are great for long-term utility savings and environmental impact, but they’re costly and don’t consistently increase resale value — especially in areas without incentives or where leasing contracts complicate sales.
What to do instead:
If energy efficiency is your goal, insulation upgrades or new windows offer broader appeal at a lower cost.
Remodel smarter, not pricier
Whether you're renovating to enjoy your home longer or planning to sell in the near future, the key to smart remodeling is balancing cost, impact, and value.
Before committing to a large project — especially if using a HELOC or other loan — ask yourself: "Will this improve my quality of life and my home’s value? Are there more cost-effective upgrades that deliver a stronger return?"
Stick to projects with broad buyer appeal, visible transformation, and durable functionality — and you’ll be remodeling with confidence.
Sources:
The 2024 Cost vs. Value Report by Remodeling Magazine
The 2025 Remodeling Impact Report by the National Association of Realtors (NAR)
