Most homeowners invest in remodeling to improve their living space, but smart homeowners also think about what that investment returns. On average, home renovation projects deliver a 70 percent return on investment, meaning most upgrades add real, measurable value to a property. According to the Joint Center for Housing Studies of Harvard University, U.S. homeowners spent over $611 billion on home improvements in 2022, and that spending is expected to remain above $600 billion through 2025. Renovation continues to be one of the most active areas of residential investment across the country.
Not all projects return the same value, and not all markets behave the same way. As a trusted home remodeling contractor in Long Island with over 20 years of experience serving Nassau and Suffolk County homeowners, we have seen firsthand which upgrades consistently add equity and which ones fall short of expectations. This guide breaks down the data so you can make informed decisions before committing your renovation budget.
What Is Home Remodeling ROI and How Is It Calculated?
Return on investment in home remodeling measures how much of your project cost you recover when you sell the property. It is one of the most practical ways to evaluate whether a renovation makes financial sense.
Simple formula: ROI = (Net Gain / Cost of Project) × 100
The calculation is straightforward. If you spend $30,000 on a kitchen remodel and it increases your home’s resale value by $24,000, your ROI is 80 percent. The net gain is the increase in property value, not the full sale price.
It is worth noting that this is an estimate. Actual returns depend on local housing market conditions, material quality, timing, and how well the project was executed. A comparative market analysis from a local real estate professional can give you a more precise picture of what your specific upgrades are worth in your neighborhood.
Why most remodels don’t return 100% and why that’s still worth it
A 100 percent ROI in remodeling is the exception, not the rule. Most projects return between 50 and 85 percent of their cost at resale. That might sound like a loss, but it is not the complete picture.
Home equity grows over time as property values appreciate. A remodel that adds $25,000 in value today may contribute even more by the time you sell, especially in a market like Long Island where home values in Nassau County sit at a median of $840,000 and Suffolk County follows at around $690,000. Beyond the numbers, the upgrade improves daily living throughout your ownership, which is something a savings account cannot offer.
The two types of value: resale value vs. quality-of-life value
Remodeling creates value in two ways, and separating them helps you make better decisions.
Resale value is the dollar amount a project adds to your home’s market price. This is what ROI measures. Exterior replacements, kitchen updates, and bathroom renovations consistently perform well here.
Quality-of-life value is harder to quantify but equally real. A finished basement that your family uses daily, a bathroom that functions better every morning, or a home office that supports remote work adds value throughout your ownership, regardless of what a buyer eventually pays. The strongest remodeling decisions deliver both.
2026 Home Remodeling ROI: National Data vs. What Long Island Homeowners Can Expect
Understanding ROI starts with reliable data. The 2025 Cost vs. Value Report, published annually by Zonda and the Journal of Light Construction, compares the average cost of common remodeling projects against the value those projects retain at resale across 115 U.S. markets. It remains the most widely referenced benchmark in the remodeling industry and a practical starting point for any homeowner planning a renovation budget.
Top 10 ROI Projects Nationally (2025 Data)
| Remodeling Project | Job Cost | Resale Value | Cost Recouped |
|---|---|---|---|
| Garage Door Replacement | $4,672 | $12,507 | 268% |
| Steel Entry Door Replacement | $2,435 | $5,270 | 216% |
| Manufactured Stone Veneer | $11,702 | $24,328 | 208% |
| Fiber-Cement Siding Replacement | $21,485 | $24,420 | 114% |
| Minor Kitchen Remodel | $28,458 | $32,141 | 113% |
| Vinyl Siding Replacement | $17,950 | $17,313 | 97% |
| Backup Power Generator | $13,534 | $12,902 | 95% |
| Wood Deck Addition | $18,263 | $17,323 | 95% |
| Composite Deck Addition | $25,096 | $22,199 | 89% |
| Fiberglass Grand Entrance | $11,754 | $9,959 | 85% |
These figures represent national averages. They are a useful reference point, but they do not reflect the specific cost and value dynamics of the Long Island housing market.
Why Long Island ROI Differs from National Averages
The national averages in the table above are built from data across 115 markets, many of which have significantly lower home values and labor costs than Long Island. When you apply those same projects to Nassau and Suffolk County, the numbers shift in important ways.
Labor and material costs on Long Island run considerably higher than the national average. Full home renovations in Nassau and Suffolk County typically cost between $150 and $250 per square foot, compared to a national range of $75 to $185. That higher cost basis means your upfront investment is larger, but it does not necessarily mean your return shrinks proportionally.
Home values on Long Island work in your favor. With Nassau County median home values sitting around $840,000 and Suffolk County around $690,000, even a modest percentage increase in appraised value translates to a meaningful dollar gain. A project that adds 5 percent in value to a $700,000 home returns $35,000, which is a very different outcome than the same percentage gain on a $300,000 home in another market.
Two additional factors specific to Long Island homeowners are worth keeping in mind:
- Permit costs in Nassau and Suffolk County add to project budgets and vary by town and project scope. Factoring them in early prevents budget surprises.
- Buyer preferences in the Long Island real estate market favor move-in ready homes with updated kitchens, bathrooms, and functional living spaces. Projects that align with those preferences tend to recover more of their cost at resale.
Key 2025 Trend: Exterior Projects Dominate for the Second Consecutive Year
One of the clearest findings in the 2025 Cost vs. Value Report is how strongly exterior replacement projects outperformed interior renovations. Eight of the top ten projects by ROI were exterior improvements, with garage door replacement, steel entry door replacement, and manufactured stone veneer each returning more than double their cost at resale.
This trend reflects how buyers evaluate homes in a selective housing market. Curb appeal improvements create immediate visual impact and signal that a property has been well maintained. Interior remodels, while personally rewarding, often come down to subjective taste and are harder to price into a sale.
For Long Island homeowners planning renovations with resale in mind, this data suggests that exterior upgrades deserve serious consideration alongside kitchen and bathroom projects. The return numbers are difficult to ignore.
Highest ROI Home Remodeling Projects for New York Homeowners in 2026
The national ROI figures provide a useful benchmark, but the projects below are particularly relevant for Long Island homeowners because they align directly with what buyers in Nassau and Suffolk County prioritize. Each section covers what the data says nationally and what that means in practical terms for this market.
1. Minor Kitchen Remodel: 113% ROI Nationally
The minor kitchen remodel is the only interior project that consistently cracks the top five in the Cost vs. Value Report. A job cost of $28,458 returns an average resale value of $32,141 nationally, meaning homeowners recoup more than they spend. That is a rare outcome in remodeling.
A minor remodel does not mean a superficial one. It typically includes:
- Cabinet refacing or door replacements
- New countertops and updated appliances
- Fresh flooring and improved lighting
The layout stays the same, which keeps costs controlled while delivering the visual and functional improvements buyers respond to most.
On Long Island, mid-range kitchen renovations commonly range from $30,000 to $75,000 depending on scope and materials. Keeping the project focused on functional upgrades rather than luxury finishes protects your return. Quartz countertops, energy-efficient appliances, and quality cabinetry consistently perform well with buyers without pushing the budget into upscale territory where returns begin to shrink.
For a detailed breakdown of how different kitchen upgrade types affect property value in this market, read our guide on how much a kitchen remodel increases home value.
2. Bathroom Remodel (Midrange): 80% ROI Nationally
A midrange bathroom remodel returns around 80 percent of its cost at resale according to 2025 national data, with an average job cost of $26,138 and a resale value of $20,915. While that percentage sits below a minor kitchen remodel, the bathroom remains one of the highest-priority spaces for buyers evaluating a home.
The strongest returns come from functional improvements rather than luxury upgrades:
- Walk-in shower installations and double vanity additions
- Updated tile flooring and modern fixtures
- Improved lighting design and heated flooring systems
As with kitchens, the key is staying within a scope that fits the neighborhood. Over-improving a bathroom beyond what comparable homes in the area offer limits how much of that investment you can realistically recover at resale.
3. Basement Remodel: 71% ROI (Newly Tracked in 2025)
The basement remodel was added as a tracked category in the 2025 Cost vs. Value Report for the first time, with a national average job cost of $52,012 and a resale value of $36,905, reflecting a 71 percent return. That figure validates what many Long Island homeowners already know: a finished basement adds genuine, measurable value.
On Long Island, finished basement space carries particular weight. Homes in Nassau and Suffolk County are often priced by the square foot, and a properly finished basement effectively increases livable square footage without the cost of a full addition. Buyers in this market factor finished basements into their offers whether the space is designed as:
- A home office or remote work space
- An entertainment room or guest suite
- A rental unit that generates income potential
Basement finishing ROI also improves when the project includes practical features such as proper waterproofing, egress windows, and a bathroom addition, all of which expand how the space can be used and how it is appraised.
4. Interior and Exterior Painting: Up to 107% ROI
Fresh paint is one of the few remodeling investments that can return more than it costs. Interior painting ROI can reach 107 percent according to industry data, making it one of the most efficient upgrades available at any budget level.
The reason is straightforward. Paint improves the immediate visual impression of a home without requiring structural changes, permits, or extended project timelines. For buyers touring a property, fresh neutral interiors signal a well-maintained home and reduce the mental cost of moving in.
Exterior painting delivers similar benefits from a curb appeal standpoint. In a competitive Long Island real estate market where first impressions carry real weight, it is often one of the smartest pre-listing investments a homeowner can make. Both interior and exterior painting also complement other renovation work. If you are updating a kitchen, finishing a basement, or replacing windows, a coordinated fresh paint job pulls the project together and strengthens the overall impression for buyers.
5. Window and Door Replacement
Steel entry door replacement delivers a 216 percent ROI nationally according to 2025 data, making it the second-highest returning project overall. At an average job cost of $2,435 with a resale value of $5,270, it is also one of the most accessible upgrades available on any budget.
Vinyl window replacement returns around 76 percent of its cost, a solid figure for a project that also delivers ongoing financial benefits:
- Reduced heating and cooling costs, which matters in a region where Long Island utility costs run above the national average
- Eligibility for federal energy tax credits in 2026, which lowers the effective out-of-pocket cost
- Stronger buyer confidence, as updated windows signal lower future repair costs
From a buyer perspective, updated windows and doors indicate that a home has been well maintained. That reassurance can influence both the speed of a sale and the strength of offers in a market where buyers are making significant financial commitments.
6. Full Home Remodel: What to Expect on ROI
A full home remodel is a different category from the targeted projects above. When an entire home is renovated, ROI depends heavily on the starting condition of the property, the scope of work, material choices, and how the finished result compares to neighboring homes.
On Long Island, full gut renovations in Nassau and Suffolk County typically cost between $185 and $300 per square foot, with total project costs commonly ranging from $150,000 to $250,000 or more depending on home size and finish level. These projects make the most financial sense when:
- The home is significantly outdated or in poor condition
- The property is priced well below neighborhood comps due to its current state
- The renovation scope stays within what comparable homes in the area support
The most important principle with a full remodel is avoiding over-improvement. Moderate material choices, practical layouts, and improvements that address real functional needs consistently outperform luxury overhauls when it comes to protecting your investment.
Renovations That Won’t Add Value in the Long Island Market
Knowing where not to spend is just as important as knowing where to invest. Some renovations consistently underperform at resale, and understanding why helps you protect your budget before a project begins.
Luxury Upgrades in Mid-Range Neighborhoods
High-end finishes and premium materials add real comfort to daily living, but they do not always translate into higher sale prices. When a home is renovated well beyond what comparable properties in the neighborhood offer, buyers are rarely willing to pay the difference.
A custom chef’s kitchen with imported stone countertops and commercial-grade appliances may cost $120,000 or more. If surrounding homes sell with standard mid-range kitchens, the market simply will not support a price that reflects that investment. The same applies to:
- Luxury bathroom overhauls with imported tile and high-end fixtures
- High-end appliances in homes priced in the mid-range market
- Premium flooring and custom built-ins that exceed neighborhood standards
The guiding principle is to improve your home to match or slightly exceed the neighborhood, not to set a new standard that the local market cannot absorb.
Swimming Pools: Why the ROI Math Is Tricky on Long Island
Swimming pools are a common consideration for Long Island homeowners, and the appeal is understandable. Summers here are warm, lots are often large enough, and outdoor living spaces are genuinely valued by buyers in this market.
The problem is that pools rarely return their cost at resale. Installation alone typically runs between $50,000 and $100,000 for an inground pool on Long Island, and that figure does not include ongoing maintenance, insurance increases, or compliance with local zoning regulations and building codes. When buyers evaluate a home with a pool, many factor in those ongoing costs rather than simply viewing it as an added feature.
Buyer preferences also vary significantly. Some buyers actively seek homes with pools. Others with young children or minimal interest in maintenance will discount a home because of one. That divided buyer pool limits how much the feature adds to your resale value and can actually narrow the field of interested buyers rather than expanding it.
If outdoor living is a priority, hardscaping features, patios, and landscaping improvements tend to offer a more reliable return with broader buyer appeal.
Over-Improving Beyond Neighborhood Comps
Real estate appraisers and buyers both use comparable sales to determine what a home is worth. If your renovation pushes your property well above what similar homes in the area have recently sold for, recovering that investment at resale becomes very difficult.
This is one of the most common and costly mistakes Long Island homeowners make. A $300,000 renovation on a home in a neighborhood where comparable properties sell for $550,000 is unlikely to push your sale price to $850,000. The market sets a ceiling, and renovations cannot reliably break through it.
Before committing to a major project, reviewing recent real estate comps in your specific area gives you a realistic picture of what the market will support. A local contractor estimate combined with a comparative market analysis from a real estate professional helps ensure your renovation budget stays within a range that makes financial sense.
What Long Island Homeowners Are Prioritizing in 2026
Renovation trends on Long Island reflect both national patterns and local market pressures. Understanding what homeowners are currently investing in, and why, helps put individual project decisions into a broader context.
Median Renovation Spend Up 60% Since 2020
According to the 2024 U.S. Houzz and Home Study, the median renovation spend among homeowners increased by 60 percent between 2020 and 2023, rising from $15,000 to $24,000. At the upper end of the market, the top 10 percent of renovation spenders saw that figure climb from $85,000 in 2020 to $150,000 in 2023. More than half of renovating homeowners in 2023 spent $25,000 or more on their projects, up from 37 percent in 2020.
Several factors are driving that increase. Material costs and labor costs in the construction industry rose significantly following 2020, meaning the same project costs more today than it did four years ago. Inflation impact on remodeling budgets has been real and consistent. Homeowners planning projects in 2026 should factor current pricing into their estimates rather than relying on figures from a few years ago.
The “Stay and Renovate” Trend: Why Long Islanders Are Remodeling Instead of Moving
One of the most significant shifts in the Long Island housing market over the past two years is how many homeowners are choosing to renovate their current property rather than sell and buy something else. This trend is driven by a straightforward financial reality.
Homeowners who purchased or refinanced at historically low mortgage rates between 2020 and 2022 are reluctant to give up those rates in exchange for a new mortgage at current levels. Moving up in the market also means competing for limited inventory in Nassau and Suffolk County, where housing supply has remained tight. For many Long Island homeowners, the math strongly favors staying put and investing in the home they already own.
This has created consistent demand for projects that improve comfort and functionality for long-term living rather than purely targeting resale value. Home office renovations, basement finishing, bathroom upgrades, and open floor plan conversions are all being driven in part by homeowners who plan to remain in their homes for the foreseeable future.
Most In-Demand Projects Brizzy Contracting Is Seeing Across Nassau and Suffolk County
After more than 20 years remodeling homes across Long Island, the requests we receive are a reliable indicator of what homeowners in this market actually prioritize. In recent years, the projects we are most consistently called for include:
- Kitchen updates focused on layout improvements, new cabinetry, and countertop replacements
- Bathroom renovations ranging from full gut remodels to targeted fixture and tile updates
- Basement finishing projects driven by the need for additional functional living space
- Interior and exterior painting as a high-return, lower-cost upgrade before listing or after other renovation work
- Window and door replacements motivated by energy efficiency, security, and curb appeal improvements
What stands out across all of these is that Long Island homeowners are making practical, value-driven decisions. The requests we see are rarely about luxury for its own sake. They are about improving how a home functions, how it looks, and what it will be worth when it eventually goes to market.
How to Prioritize Your Remodeling Projects for Maximum ROI
Choosing the right project matters, but so does choosing the right project at the right time. A few clear principles help Long Island homeowners make renovation decisions that protect their budget and deliver real returns.
Match Your Project to Your Timeline
How long you plan to stay in your home should drive every major renovation decision.
If you are selling within one to two years, focus on:
- Minor kitchen updates and fresh paint
- Bathroom fixture improvements
- Curb appeal upgrades like door and window replacements
These projects help homes sell faster and attract stronger offers without requiring large upfront investments that take time to recover.
If you are staying long-term, quality-of-life improvements make sense even when the percentage return is lower. Basement finishing, full bathroom renovations, and home office conversions deliver daily value throughout your ownership before they ever factor into a sale price.
Prioritize Functional Upgrades Over Aesthetic-Only Improvements
Buyers and appraisers respond more strongly to functional improvements than purely cosmetic ones. A kitchen that works better, a bathroom with a practical layout, or a basement that adds usable square footage contributes to appraised value in ways that decorative updates rarely match.
When the budget is limited, ask one simple question before any upgrade: does this make the home more usable, more efficient, or easier to maintain? If yes, it deserves priority. If the improvement is purely visual with no functional benefit, it should come later.
Mid-Range Materials Consistently Outperform Luxury Finishes on ROI
One of the clearest patterns in remodeling data is that mid-range material choices deliver stronger returns than luxury alternatives. Buyers set price expectations based on comparable homes nearby, not on what you spent.
Mid-range options that consistently perform well include:
- Quartz countertops and solid wood cabinetry in kitchens
- Standard energy-efficient appliances
- Vinyl plank or hardwood flooring at moderate price points
- Quality fixtures and tile in bathrooms without imported materials
On Long Island, where labor costs already run above the national average, pushing material costs into luxury territory widens the gap between what you spend and what you recover. Mid-range choices keep that gap manageable.
Why Long Island Costs Differ from Online Calculators and Why You Need a Local Estimate
National renovation calculators are built on averages from hundreds of markets across the country, many with lower labor costs and cheaper permit structures than Nassau and Suffolk County. Relying on those figures almost always leads to underestimating what a project will actually cost here.
Key factors that national tools miss:
- Permit fees that vary by town and can add thousands depending on project scope
- Labor rates that run meaningfully higher than the national average
- Material pricing and contractor availability specific to the Long Island market
- Conditions common in older Long Island homes that affect project complexity
The only reliable way to budget a renovation in this market is with a local contractor estimate based on actual scope, current pricing, and the specific conditions of your home.
Frequently Asked Questions
What home remodel has the best ROI in New York?
Exterior projects lead the returns. Garage door replacement delivers 268 percent ROI and steel entry door replacement delivers 216 percent nationally according to 2025 data. Among interior projects, a minor kitchen remodel tops the list at 113 percent. For Long Island homeowners, kitchen updates, fresh paint, and window and door replacements consistently perform best given local buyer preferences.
Does a kitchen remodel add value in Long Island?
Yes. A minor kitchen remodel returns 113 percent of its cost nationally, making it one of the few interior projects that recoups more than it costs. On Long Island, updated kitchens are a top buyer priority in Nassau and Suffolk County. Keeping the scope mid-range with quality cabinetry, countertops, and energy-efficient appliances delivers the strongest return.
Is finishing a basement worth it in New York?
Yes, particularly for Long Island homeowners planning to stay long-term. The 2025 Cost vs. Value Report placed basement remodels at 71 percent ROI nationally. On Long Island, finished basements add livable square footage in a market where homes are priced by the square foot, making the return often stronger than the national figure suggests.
What is a good ROI for a home renovation?
The industry benchmark is 70 percent, meaning you recover 70 cents for every dollar spent at resale. Projects returning 80 percent or more are strong performers. Anything above 100 percent, such as door replacement or interior painting, adds more value than it costs. Quality-of-life benefits and energy savings add further value beyond the resale percentage alone.
How does Long Island home renovation ROI compare to national averages?
Costs are higher on Long Island, with labor and materials running $150 to $250 per square foot versus a national range of $75 to $185. However, Long Island home values are significantly above the national average, which means the same percentage ROI translates to a larger dollar return. Well-executed kitchen, bathroom, and exterior projects tend to perform competitively with or above national benchmarks in this market.
Ready to Maximize Your Home's Value?
Remodeling returns real value when the right projects are chosen, budgets are planned realistically, and the work is executed by experienced professionals. At Brizzy Contracting, we have spent over 20 years helping homeowners across Long Island make renovation decisions that improve their homes and protect their investment.
If you are ready to take the next step, reach out to us today for a free, no-obligation estimate. As a trusted remodeling contractor in Long Island, we are here to help you plan a project that delivers real value for your home and your budget.
