6 Home Renovations That Cost More Than They’re Worth

When planning home renovations, it’s essential to know which upgrades provide a solid return on investment and which don’t. While some projects may enhance your living experience, they might not increase your home’s value enough to justify the cost—especially if you plan to sell soon. According to Southern Living, here are six costly home improvements that often fail to pay off, along with budget-friendly alternatives.

1. Swimming Pools

Installing an in-ground swimming pool can cost upwards of $30,000 but typically adds only about $5,000 to your home’s value. Additionally, many buyers are wary of the maintenance and safety concerns associated with pools.

Alternative: Opt for an above-ground pool that’s affordable and removable.

2. Upscale Kitchens and Bathrooms

Luxury kitchen and bathroom upgrades—like custom cabinets, high-end appliances, and designer fixtures—recoup only 40–50% of their cost. While a minor kitchen remodel is worthwhile, over-the-top features don’t deliver the same ROI.

Alternative: Refresh spaces with low-cost updates like new cabinet fronts, ceramic tiles, or a fresh coat of paint.

3. Garage Conversions

Converting a garage into living space may seem appealing, but garages are highly desirable, especially in areas with limited parking or harsh winters. Losing one can lower your home’s resale appeal.

Alternative: Finish your basement instead, which can recoup around 86% of the cost while keeping the garage intact.

4. Sacrificing a Bedroom for a Primary Suite

Turning a bedroom into a larger primary suite might sound appealing, but even a small guest bedroom is often more valuable than added space or a walk-in closet. There are exceptions—like adding a second bathroom in a one-bathroom house—but this renovation typically recovers only about 56% of its cost.

Alternative: Enhance your bedroom with affordable upgrades like new furniture, built-in storage, or fresh paint. Consider small-scale changes to maximize existing space.

5. Installing Carpet

Wall-to-wall carpeting, especially over hardwood floors, can hurt resale value. Buyers often prefer wood or vinyl flooring, which are easier to maintain and have broader appeal.

Alternative: Invest in refinishing hardwood floors, which can recover nearly 150% of the cost. For new flooring, choose wood or high-end vinyl.

6. Building an Addition

While additional bedrooms or bathrooms can make a home more functional, the cost of building an addition far exceeds the value it adds. On average, you’ll recoup just 25–35% of the investment.

Alternative: If you’re not staying in the home long-term, consider whether moving to a larger property makes more sense financially.

Final Thoughts

If you’re planning to sell soon, focus on cost-effective improvements that enhance your home’s appeal without breaking the bank. Consulting with a real estate agent can help you determine the best strategy for your home and market.

Source: Southern Living Magazine, Brandee Gruener, “6 Costly Home Improvements That Won’t Boost Your Property Value” (December 4, 2024).