For many homeowners, 2025 is shaping up to be the year of renovation.
As elevated mortgage rates continue to keep people in their current homes longer, along with a nationwide shortage of homes for sale, more homeowners are deciding to invest in upgrades instead of entering the current competitive housing market.
But when it comes to remodeling, not all projects are created equal, and not all updates will increase your home’s value in the same way.
One of the most important things you can do before starting a renovation is ask yourself this simple but critical question: Will this project actually pay off?
Whether you’re considering new siding, replacing a garage door, adding stone veneer to your home’s exterior, or remodeling a bathroom or kitchen, understanding how much value a project adds—and how that value varies depending on where you live—can help you make smarter choices. This is especially true if you plan to finance your renovations using a home equity line of credit (HELOC).
Let’s take a closer look at how current market trends are shaping renovation payback, why location plays such a big role, and what homeowners should know before borrowing money to upgrade.
Remodeling returns are still strong in 2025
Every year, Remodeling Magazine publishes the Cost vs. Value Report, which looks at how much standard remodeling projects cost and how much of that cost homeowners can expect to recoup when they sell their home.
According to a 2024 report, the numbers show that exterior projects continue to deliver some of the best returns on investment we’ve seen in years.
Projects like garage door replacements, steel entry doors, and manufactured stone veneer are topping the charts with incredibly high returns—many of them recouping more than 100% of their cost, and in some cases, more than double or triple what homeowners spent.
Why are these returns so high? Several market forces are at play.
First, mortgage rates remain elevated, making it more difficult and more expensive to buy a new home. As a result, many homeowners are staying put and fixing up the homes they already own.
Second, there’s still a shortage of homes for sale, which means that well-maintained, updated homes stand out more than ever to buyers.
Third, home equity has grown significantly over the past few years, giving homeowners more borrowing power to fund improvements.
Lastly, there’s something that never goes out of style: curb appeal. Buyers often form an opinion about a home before walking through the front door.
That’s why exterior updates—like fresh siding or a modern garage door—can make a bigger difference than a high-end kitchen remodel, especially in today’s market.
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Where you live matters: Regional remodeling ROI
While national data gives a good overview, it’s essential to understand that remodeling return on investment (ROI) varies significantly by location. The same project that pays off in one region might not make sense in another. Your home’s geographic location can impact how much value your updates actually add.
To show how much ROI can vary, here’s a snapshot of data from the 2024 Cost vs. Value Report, highlighting three popular exterior projects across six U.S. regions:
| Region | Garage Door ROI | Steel Entry Door ROI | Stone Veneer ROI |
| New England | 314.7% | 236.2% | 151.7% |
| Pacific | 250.7% | 249.9% | 203.5% |
| Mountain | 174.4% | 185.2% | 124.3% |
| East North Central | 152.3% | 161.8% | 112.2% |
| West North Central | 158.4% | 152.5% | 111.2% |
| South Atlantic | 189.5% | 198.9% | 150.2% |
As you can see, ROI is not evenly distributed across the country.
Replacing a garage door in New England could return more than three times your investment. Meanwhile, the same project returns closer to 150% in the East North Central region.
That’s still a good return, but it’s a reminder that local market conditions make a big difference.
What causes these differences?
- Buyer preferences vary by region. In some markets, buyers place a higher value on curb appeal, while in others, indoor upgrades might matter more.
- Labor and materials cost more in some areas. The higher the cost to do the project, the more it eats into your ROI.
- The strength of the real estate market plays a role. Updated features can make a bigger impact in high-demand regions where homes are selling quickly and for top dollar.
For homeowners, this means it’s important to go beyond national averages.
Before starting a remodel, consult with a local real estate agent, appraiser, or experienced contractor. They can tell you what features buyers in your specific area are willing to pay for—and what updates might be overrated.
Check home improvement loan options and rates. Start here
Thinking about a HELOC? Read this first.
If you’re planning a renovation, there’s a good chance you’re considering using a home equity line of credit (HELOC) to pay for it.
A HELOC allows you to borrow against the value of your home and only pay interest on what you use, making it a flexible option for financing home improvements.
But just because you can borrow, doesn’t mean you should—at least not without a plan.
Using a HELOC makes the most sense when you’re confident that the project will increase your home’s value. The last thing you want is to borrow $25,000 for a remodel that only adds $10,000 in value.
That kind of math could leave you owing more than your home is worth. Before you apply for a HELOC or draw funds, consider these smart steps:
1. Review local remodeling trends. Get a sense of what upgrades are getting the best returns in your area.
2. Prioritize exterior projects. This is especially true for projects with proven ROI. Garage doors, entry doors, and manufactured stone veneer continue to lead the way.
3. Talk to a local lender and run the numbers. Make sure your monthly HELOC payments will be affordable, even if home values decline or interest rates rise.
Using a HELOC can be a smart move, but only if you treat your renovation like an investment and do your homework ahead of time.
What does all this mean for homeowners in 2025
Today’s homeowners are navigating a unique set of circumstances. Mortgage rates remain high, housing supply is still limited, and home equity is at record levels.
These conditions have created a remodeling environment where the right projects can offer tremendous value, both now and down the road.
But with borrowing costs higher than they’ve been in years, the pressure to choose the right project is more important than ever.
In 2025, buyers are paying top dollar for homes that are updated and ready to go. Homes with strong curb appeal are selling faster and for more money. And sellers who invest in smart updates—especially those on the outside of the home—are seeing big returns.
At the same time, not all renovations will pay off. That’s why timing, location, and local market knowledge are key. Before you dive into a remodel, take a step back and make sure you’re approaching it with the right plan, the right budget, and the right expectations.
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The bottom line for getting the most out of your renovation dollars
Renovating your home can be one of the smartest financial moves you make—but only if you approach it with strategy and care.
The market is rewarding specific projects right now, especially exterior improvements in high-demand regions. In places like New England and the Pacific Coast, homeowners are seeing returns well above 200%, and in some cases, even triple what they spent.
But success doesn’t come from following trends alone. It comes from understanding your local market, working with trusted professionals, and choosing renovations that match your goals and your neighborhood.
If you’re planning to use a HELOC to fund your project, take the time to make sure the numbers work in your favor. Your home is more than just where you live—it’s one of your biggest financial assets. Treat your remodel like an investment, and it could pay off in more ways than one.
Written by: Craig Berry